Chapter 527: Good Business Comes Knocking
Chapter 527: Chapter 527: Good Business Comes Knocking
Just as Han Xiaorui, Xu Cheng, and the company’s senior management were taking stock of the past year’s successes and failures, Director Hu from the district’s electricity bureau arrived.
Han Xiaorui and Xu Cheng ended the meeting to personally greet Director Hu.
"Director Hu, what brings you here today?"
His reason for seeking out a real estate company was likely related to housing.
Director Hu smiled. "My older sister lives in White Crane Immortal Residence. I went to visit her community a while back, and it’s truly excellent. Over at our electricity bureau, employee housing has always been tight."
"We now have a plot of land that we want to use to alleviate our employee housing shortage. We’re hoping for something like White Crane Immortal Residence, with sensible floor plans and plenty of green spaces and amenities."
Hearing this, Xu Cheng smiled. "Thank you for your recognition of our company, Director Hu. A low floor-area ratio, lots of green space, various other amenities, and elevators... all of that comes with a higher cost."
Director Hu nodded. "We understand. We want a higher-quality residential community. And your Jinshan Bay Property Management is truly excellent. They not only maintain the community’s cleanliness but also promptly prune the trees and provide repair services."
Han Xiaorui reminded him, "Property management companies provide services, but residents pay an annual management fee. They don’t work for free."
Director Hu chuckled. "I get it. Your company has to assign staff and pay salaries, too."
Director Hu smiled. "My main requirement for coming here this time is that all the buildings must have elevators. We can accept taller buildings."
’He’s set his sights on buildings with elevators.’
Xu Cheng nodded. "Thank you for your trust. I’ll send a team to survey the location you mentioned, then we’ll draw up the design plans and provide a quote. If you and the other leaders at your bureau find it acceptable, we’ll sign a contract."
"If you’re not satisfied, we can make revisions until you are. We can also negotiate on any issues that come up."
After they finished discussing business, Han Xiaorui asked curiously, "Director Hu, besides being impressed with the model set by White Crane Immortal Residence, why do you have such high regard for our company?"
Director Hu didn’t hide anything. "Haha, among our government departments, we all know a lot of the same people. The Property Management Bureau, the Housing and Urban-Rural Development Bureau, the Planning Bureau, the Inspection Bureau... they all have high praise for the quality of the homes at White Crane Immortal Residence."
Hearing this, Han Xiaorui had a moment of realization.
’So that’s how it is. There are no secrets between these departments.’
’Build good houses, and your reputation will spread.’
After seeing Director Hu off, Xu Cheng excitedly rubbed his hands together. "Phase Two of White Crane Immortal Residence hasn’t even started, and we already have people coming to us for a partnership. This proves that the houses we build have earned recognition."
Han Xiaorui smiled. "Yes, this is the result of our solid work. We’ll just keep taking this steady approach. We can earn a little less, but we must guarantee both quality and quantity. With a good reputation like this, we’ll have no shortage of projects from these related government departments in the future."
"Of course, with these departments, we don’t have to provide the land. We’re only responsible for construction, design, and other related costs. If you’re worried about cash flow, you can stipulate in the contract that they make an advance payment of thirty to fifty percent."
Xu Cheng was taken aback. "We’re not advancing the funds this time?"
Han Xiaorui pointed to White Crane Immortal Residence’s location on a map. "Before, we acquired the land, so the land was completely ours, and the houses we built were also ours."
"After construction, we only had to allocate some of the units to the original residents who were relocated, so there weren’t many disputes over property rights. Even if we had to go to court, we could win."
"But when we cooperate with these departments, the land ownership belongs to them. We’re just responsible for building the houses! If we finish the construction and they refuse to pay, or if the relevant leader makes a mistake and is removed from their post, it’s highly likely to get bogged down in disputes."
"Therefore, it’s only reasonable for us to require them to pay a portion upfront. Besides, let’s not even talk about the high interest rates on loans; just think about how high the interest rates are for deposits."
"Even if it only takes a year to build these houses, think of how much interest we’d earn on that much capital. Shouldn’t that be factored into the profit? The investment for Phase Two of White Crane New District is also huge. Our funds are very tight."
"If we front the money again for the electricity bureau’s project, we’ll most likely have to take out a bank loan. Loan interest rates are quite high, so when you factor that in, our profit margin gets squeezed."
"So, we should do our best to get them to pay a portion upfront. Half would be best, but if not, thirty percent will do. Also, we must clearly specify all rights and obligations in the contract terms."
"For the legal aspects, have Nanyang Law Firm draw up the contract clauses specifically for us. It’s better to sort out the unpleasant details first and get everything nailed down in the contract."
"We might need to expend a lot of energy in the initial stage, but this will provide good experience for future work. Once we’ve set a precedent, subsequent projects will be much easier."
Given Han Xiaorui’s standing in the district, she wasn’t actually afraid of the electricity bureau trying to back out of the deal.
But it was always better to be safe than sorry, to think of every possibility and put oneself in an invincible position.
After all, building an entire residential community wasn’t a matter of one or two rooms, or even one or two buildings.
A single project could easily involve a dozen, or even several dozen, buildings. Where would they get that kind of money?
Xu Cheng carefully committed Han Xiaorui’s instructions to memory. "I understand. When I have the accountant prepare the quote, I’ll make sure they calculate everything clearly and take all the relevant issues into account."
Han Xiaorui deeply agreed. "This is a brand-new cooperation model, and it will serve as a great reference for the future. If we do a good job building these houses, other government departments will come seeking our cooperation later."
"Our profit margin can be a little lower. We’ll take a steady approach, slowly accumulate experience, and build a reputation for not only our properties but also our property management services here in Shencheng."
The afternoon was spent in another meeting, summarizing last year’s work and laying out the plans for the year ahead.
The new project that had come their way that morning, in particular, left everyone in high spirits.
After a long day, Han Xiaorui came home famished.
Ye Feng brought over a bowl of seafood noodles. "Sister Lian made this for you specially before she took the kids into the city!"
Han Xiaorui praised her as she ate, "Sister Lian’s cooking has gotten even better!"
"Of course. I think her cooking is almost on par with my godmother’s," Ye Feng praised. "Eat slowly, don’t rush. I wanted to talk to you about something while you eat."
Han Xiaorui looked up. "You’ve seemed preoccupied lately. Is something wrong at work?"
Ye Feng shook his head. "It’s not trouble! It’s just... I want to take a trip up north to Mao Bear! It seems like there’s some trouble over there, and I’ve been in contact with a number of experts over the years."
"This is the perfect time for me to go over and talk with them in detail. I want to invite them to come here for a ’tour,’ and if they’re willing to work here, I can handle the relevant paperwork."
Hearing this, Han Xiaorui froze for a moment. ’Mao Bear is going to collapse at the end of this year. Things will be chaotic right before it happens.’ She was very worried.
"Are you going alone? Or with other people? I’m worried about your safety!"
Ye Feng smiled. "Not just me. There are others! It’s a ’business delegation’ organized by the government. As for whether everyone in the delegation is actually a ’businessman’... that’s not necessarily the case."