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Thread: GC awarded with my number, now wants to negotiate

  1. #11
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    Quote Originally Posted by brantmacga View Post


    My opinion was that you won the job with my price, so we do all the work.

    Absolutely!!!

    Roger
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  2. #12
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    Quote Originally Posted by ptonsparky View Post
    That would just PMO!

    Otherwise, Nothing constructive from me.
    There was another post about an EC that was low bidder only to find the GC wanted to negotiate price a few weeks back.

    I wonder how the GC would feel if you won the bid and then tried to negotiate for more money.
    The 95% of people that you can't trust give the other 5% a bad name.

  3. #13
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    Quote Originally Posted by growler View Post
    I wonder how the GC would feel if you won the bid and then tried to negotiate for more money.
    It is a pretty common practice. A lot of people bid low hoping they can make money on up charges and adders.

    Personally, the way I see it, the GC can negotiate all he wants. That does not mean the price will change any.

    ETA: It seems to me that the sub may have played you. if the GC can get the same work from the same guy for $28k less, it would appear the sub did not give you his best price. if you give the GC a deduct for the cost of the sub's work and keep the overhead you built in for that work, how much money will you make with zero work and zero risk involved?
    Last edited by petersonra; 05-08-17 at 10:48 AM.
    Bob

  4. #14
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    Quote Originally Posted by brantmacga View Post
    I've never had this happen before so I'm unsure what to really think.

    I was low bid on a small university university building renovation. I was low by $37k.

    My proposal includes fire alarm and networking, which will be done by a subcontractor. They submitted their price to me as a package deal.

    The GC has other bids on networking, and they want me to have my sub split their work. The GC, who I've bid with but never worked with, actually found my sub and called them directly to ask them to split it after I declined. My opinion was that you won the job with my price, so we do all the work. I'm not one for nickel and diming anyone. I felt like coming in as low as I did that I have enough leverage to force the issue. According to the GC, after speaking with my sub, if they used their own networking sub they would save $28k.

    I haven't spoken to the sub as I found out about this Friday. Is this normal for anyone else? I get the point is to make all the dollars you can, but I've always been more concerned with strong relationships that make us all money.

    I'm going to call my guy tomorrow and get his opinion and see what he wants to do.

    Opinions/advice welcomed.


    Sent from my iPhone using Tapatalk
    Give the GC back one half of your sub's price. Tell him, that's my number, take it or leave it.

  5. #15
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    This is just doing good business from a GC standpoint. We do this on every single job we get. Once we know it is ours, we will call all the subs and negotiate the buyout. Our best relationships generally get last look but even the folks that have been with us for years get the call to fine tune their best and final. Truly our best money is made on the buyout before a single shovel is turned.

    #PrudentPrePlannigPreventsPissPoorPerformance

  6. #16
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    Quote Originally Posted by brantmacga View Post
    My proposal includes fire alarm and networking, which will be done by a subcontractor. They submitted their price to me as a package deal.

    The GC has other bids on networking, According to the GC, after speaking with my sub, if they used their own networking sub they would save $28k.
    Quote Originally Posted by petersonra View Post

    ETA: It seems to me that the sub may have played you. if the GC can get the same work from the same guy for $28k less, it would appear the sub did not give you his best price. if you give the GC a deduct for the cost of the sub's work and keep the overhead you built in for that work, how much money will you make with zero work and zero risk involved?
    I don't read it that way. I think the OPs sub it $28K higher than another sub that the GC is aware of. He wants the OPs sub to still do the Fire Alarms but wants to give the networking to someone else. The GC called the OPs sub to see if he could negotiate with them for a lower price on the networking or split the job. Doesn't sound like he got anywhere.

    Also if the GC wanted seperate bids for electrical, alarms and networking he should have put them out for seperate bids.
    The 95% of people that you can't trust give the other 5% a bad name.

  7. #17
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    Quote Originally Posted by growler View Post

    Also if the GC wanted seperate bids for electrical, alarms and networking he should have put them out for seperate bids.
    Exactly. Seems as simple as that to me.
    Ethan Brush - East West Electric. NY, WA. MA

    "You can't generalize"

  8. #18
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    Quote Originally Posted by growler View Post
    I don't read it that way. I think the OPs sub it $28K higher than another sub that the GC is aware of. He wants the OPs sub to still do the Fire Alarms but wants to give the networking to someone else. The GC called the OPs sub to see if he could negotiate with them for a lower price on the networking or split the job. Doesn't sound like he got anywhere.

    Also if the GC wanted seperate bids for electrical, alarms and networking he should have put them out for seperate bids.
    In another post the OP said this:

    the sub I used is the only vendor in this area for the fire alarm that was spec'd.
    If the sub that was bid is the only one in the area doing that particular fire alarm system, how could it be anyone else?
    Bob

  9. #19
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    Quote Originally Posted by petersonra View Post
    In another post the OP said this:
    If the sub that was bid is the only one in the area doing that particular fire alarm system, how could it be anyone else?
    The GC wants Brant's sub to do the Fire Alarm but he has found someone else to do the networking at a cheaper price. It's the low voltage part of the job that the GC now wants to split.

    Brant and the low voltage sub may be willing to let someone else do this portion of the work but it doesn't sound as if the GC has made a buyout offer.
    The 95% of people that you can't trust give the other 5% a bad name.

  10. #20
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    A couple of thoughts.
    If the GC wants to deal with several different suppliers for the different parts of the project, they can.
    If the different parts need to comminicate/interface then it could get very messy.
    Responsibilities clouded to say the least.
    Who pays for meetings between the different suppliers?
    Who determines which supplier is responsible when the system malfunctions or doesn't perform as expected?

    If the project gets split up you (OP) need to ring fence the exact scope of your supply and what exactly you will warranty.
    It may lose you project but avoid a money pit.
    Si hoc legere scis nimium eruditionis habes.

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