How is Bid Market in Your Area?

[short circuit faulted]

In our area Southeast, when a commerical job with any size to it (over $500K) is being bid we are guaranteed 12-14 electrical contractor's submiting pricing with at least three being from out of state. As the project size increases to 1-5M range so does the number of contractors submitting pricing. On semi-recent project for a high school low bid was 4.8M next responsive number up was 5.6M, I was fourth man at 5.7. Grapevine says the low contractors owner has directed his folks to take work at cost or below, with today's commodities it would be really easy to get to below cost on that project. If that is thier bussiness stragey so be it, I can't see it working for much over three years - but then we have had other EC's who we all waited for them to go broke and they do normally - unfortuantley they declare bankrupcy and open under another name within a month or less.

I have come to following conclusions, only way I am going to get a bid job in this market is to leave the lighting and gear package out the quotation and it is a very good thing I have devolped relationships with a few General Contractors in design build market otherwise I would bid myself to death.

Have a great day all! BE SAFE OUT THERE! It only takes one second of carelessness to turn into a lifetime of misery OR worse to lose a life!

Steve

 

[satcom]

In our area Southeast, when a commerical job with any size to it (over $500K) is being bid we are guaranteed 12-14 electrical contractor's submiting pricing with at least three being from out of state. As the project size increases to 1-5M range so does the number of contractors submitting pricing. On semi-recent project for a high school low bid was 4.8M next responsive number up was 5.6M, I was fourth man at 5.7. Grapevine says the low contractors owner has directed his folks to take work at cost or below, with today's commodities it would be really easy to get to below cost on that project. If that is thier bussiness stragey so be it, I can't see it working for much over three years - but then we have had other EC's who we all waited for them to go broke and they do normally - unfortuantley they declare bankrupcy and open under another name within a month or less.

I have come to following conclusions, only way I am going to get a bid job in this market is to leave the lighting and gear package out the quotation and it is a very good thing I have devolped relationships with a few General Contractors in design build market otherwise I would bid myself to death.

Have a great day all! BE SAFE OUT THERE! It only takes one second of carelessness to turn into a lifetime of misery OR worse to lose a life!

Steve

How could an EC ask his folks to take work at cost or below on a school project ?

 

[wireboy]

wireboy

wireboy

This is done too often but probably to keep his workforce busy or thinking that he can make it up on extras as the job progresses.

 

[JJBarnes]

He must have some cash in the bank to bid a job of that size at cost. The retainage alone will be rough and may take a long time to get. He ends up financing (so to speak) the job for a couple of years.

Jeff

 

[cdslotz]

We do commercial jobs from 200K up 5-6 million. The average size job we do is probably around 500K to 1.2.
Here in the D/FW area, there are some mega-contractors that do 10-50 million projects. What is killing us is those size jobs are non-existent so the mega-EC's are down bidding against us on everything, and they are taking them below cost just to feed the beast.
I suppose they have the deep pockets to do that. But for how long?

 

[CopperTone]

Here is eastern MA it is just as bad. We bid on the lower end (up to $300,000 jobs) and I see the larger companies that used to bid the $5-$20 million jobs now bidding along side me. How crazy is that? and they are bidding 20-30% lower than everyone else.

When I see mid to large size companies doing this I believe it is only a matter of time before they close their doors. I think it is a desperation move for capital to attempt stay afloat. I think once you have stooped that low you probably are already bankrupt or will be in a year.

Just my opinion of course

 

[AV ELECTRIC]

These companies may be slashing wage and benefit packages if there non union and even unions may be slashing just to keep there men working where the smaller shops are maintaining there same wage and benefit package . Davis bacon jobs may make it a more even playing field you would think but there is a huge disparity among most bid contracts with them to .

 

[bigjohn67]

What a shame

What a shame

The very people who are the industry are killing it. Even deep pockets dry up, while us little guys keep chugging along and are able to pay our bills.
I make more money by taking the small jobs and live a comfortable life than the big guys
who have the 3k home mortgage payment a month.

So take all you want for nothing.... I'll still make a great living working 1/2 the time they do and my family will remember they have a dad that is not married to doing work for nothing.

Well, gotta go, Family time....