The following appeared in a memo from a vice president of a large, highly diversified company."Ten years ago our company had two new office buildings constructed as regional headquarters for two different regions. The buildings were erected by two differe

The vice-president of a large diversified company is trying to convince why the new building project be given to construction company called Zeta and not to Alpha. The vice-president put forwards three main comparison points and concludes the company should go with Zeta for their new project. The author uses expenses, cost and employee turnover rate as comparison points but while doing so does not provide factual data and sound comparison.

Author put forwards the issue of high energy consumption rate by the building constructed by Zeta but fails to look into different possible reasons the consumption might be high. Building constructed by Zeta might have a server room for the company's website and this might be the reason the energy consumption is high. It is know that the servers keep running continuously all seven days throughout the year and also require lot of cooling because of the heat generated by the servers. This might not be the case for the building constructed by Alpha and this would lead to less energy consumption buy the building.

Second point that author points out is the total cost for building constructed by Zeta been 30 percent more in-spite both the buildings having exactly the same floor plan. The biggest concern here is that the year in which the buildings were constructed. It might be possible that the economy was down when Alpha constructed the building and the value for the land at that time was low too which can lead to low costs. But when Zeta constructed the building economy was good and it was different year and the expenses went up which lead to increase in costs. The popularity of that particular area might have went up which leads to increase in rent and increase in rates of construction too. Difference in use of building material can lead to high or low construction costs. Zeta might have used premium raw material which caused more while Alpha did not.

Author also tells us that the turnover rate of employee at Alpha building is very less so the power consumption should remain more or less constant. It might be possible that employees of building created by Alpha might be working off-site or there are lot of employees who travel and are not present in the building throughout the day. This can lead to less power consumption and can explain the low energy bills. Also employee turn over has no relation to the building in which they work specially when both the buildings have exact same floor plan thus making this point of author vague.

If the author provides more data on the points discussed above then a sound decision can be made about which company is better and who should get the new building contract.