Companies must, however, take some time to adjust to this model shift in repair and bedroom activities. Bedroom rental rates are already extremely high, and one company noted that they have increased by 40 % since the pandemic. Unsustainable rentals may force employers to make concessions in the future, even if they are able to provide proof of accommodation upon hiring a new employee.
What else can be done in the long run to enhance housing for foreign employees?
A POSITIVE PROCUREMENT SYSTEM
The latest business type of employee dorms is price-based and confined to long-term contracts. On the other hand, secret housing is profit-driven in order to be long-lasting.
In contrast to personal housing, for which the landlord may raise prices and end leases, dorms have clarity in costs and duration. As a result, there is an excessive desire for hostels, which leads to supply shortages.
Additionally, due to new FEDA demands, businesses that bid for new projects must raise their prices. Contractors may calculate higher prices to fulfill accommodation requirements with excessively brief tendering periods without knowing if they will be awarded the agreement.
This will increase costs, make it challenging to get project bids, and lower interest rates to ensure better housing for foreign workers. At worst, companies might overestimate the cost of lodging before taking severe cost-cutting steps to make up for it.
To solve this problem, a shift in perspective and purchasing procedures is required. A common sweet or quotation in the procurement stage necessitates the expense of preliminary steps. As a lump sum of the project cost, workers’ accommodations range from 5 % to 15 %.
It will be wise for volume surveyors, contract managers, and facility managers to separate the cost of employee housing from different factors when evaluating project bids.
The way that unusual workers’ accommodations are run and maintained may also change. For example, government agencies could include preliminary clauses in their design contracts that outline the layout of the accommodations, the minimal requirements for audits, and a suitable tendering period.