JETER TEST COURSE-How to Effectively Manage Your Maintenance Program

How to Effectively Manage Your Maintenance Program - Activity 4 Answer Key

Pdf Summary

The Greensville Housing Agency is contemplating outsourcing landscaping services for the Laurel Park Apartments and conducted a cost-benefit analysis to determine whether it is more economically viable to carry out this work internally or to contract it out. <br /><br />**In-House Costs:**<br /><br />- **Personnel & Benefits:** $53,100 annually <br />- **Equipment:** $3,200 annually <br />- **Materials, Gas, etc.:** $1,190 annually <br />- **Total Direct Costs:** $57,490 annually<br /><br />Indirect costs associated with in-house work include staff being pulled away from other tasks, possible equipment damage, insurance liabilities, potential delays in landscaping, and lack of specialized training among current staff. However, advantages include familiar staff who know residents and the ability to set work standards.<br /><br />**Contracting Costs:**<br /><br />- **Estimated Service Fees:** $33,640 annually (based on $700 weekly for 40 weeks and $470 weekly for 12 weeks)<br /><br />There are potential indirect costs in contracting, such as variability in customer service levels, possible unmet quality standards, lack of recognition by residents, and administrative costs related to contract management. Nevertheless, benefits include specialized trained staff, teams that complete tasks efficiently, and coverage for damages/workers' compensation under their insurance.<br /><br />**Conclusion:**<br /><br />With contracting estimated to cost less than keeping the work in-house ($33,640 vs. $57,490 annually), along with the potential for specialization and reduced administrative burden, contracting seems economically more viable. Yet, considerations around quality assurance and community relationship building are crucial for making a final decision. Therefore, the group needs to balance cost savings against possible impacts on service quality and resident satisfaction when reporting their recommendation.

Keywords

Greensville Housing Agency

outsourcing

landscaping services

Laurel Park Apartments

cost-benefit analysis

in-house costs

contracting costs

economic viability

service quality

resident satisfaction