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

  1. #21
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    Quote Originally Posted by growler View Post
    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.
    Yeh...... this is what's happened.

    I spoke to my sub today. He's willing to let that part of the job go as he didn't have much profit on it. I didn't ask him to, he volunteered. He also thinks whoever is lower didn't attend pre-bid. There are some things not detailed on plans that only say "relo & protect as required" for the server room. That includes relocating a 400/pair copper line that isn't detailed on the drawings, but covered under that line above.


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  2. #22
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    Quote Originally Posted by luckylerado View Post
    Truly our best money is made on the buyout before a single shovel is turned.

    thats nice. so, i give you my best price, knowing it's going to
    affect your number, affecting YOUR chance of getting the
    job.

    then you get the job, USING MY NUMBER, among others, and
    as a matter of policy, then grind me, before we go any further.
    just to see if you can shake some money out of me for free.

    i'll say nothing further. i can't type and spit at the same time.
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  3. #23
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    I would offer to deduct the cost of your subs quote but keep the markup. Keeps your profit the same.

  4. #24
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    Quote Originally Posted by Fulthrotl View Post
    thats nice. so, i give you my best price, knowing it's going to
    affect your number, affecting YOUR chance of getting the
    job.

    then you get the job, USING MY NUMBER, among others, and
    as a matter of policy, then grind me, before we go any further.
    just to see if you can shake some money out of me for free.

    i'll say nothing further. i can't type and spit at the same time.
    Makes you want to be his sub doesn't it?
    Tom
    TBLO

  5. #25
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    Quote Originally Posted by luckylerado View Post
    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.
    All that means is after the first time you do that, you never get my best price up front. I will be leaving a lot of room for you to try that. In fact, often after the first time, there is no second time.
    Don, Illinois
    Ego is the anesthesia that deadens the pain of stupidity. Dr. Rick Rigsby

  6. #26
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    Quote Originally Posted by don_resqcapt19 View Post
    All that means is after the first time you do that, you never get my best price up front. I will be leaving a lot of room for you to try that. In fact, often after the first time, there is no second time.
    I don't deal with that size of jobs, not even close, but the few times I was asked to lower I told them that was my low, go ahead with another bid. Thank you.
    Tom
    TBLO

  7. #27
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    Quote Originally Posted by don_resqcapt19 View Post
    In fact, often after the first time, there is no second time.
    that was my thoughts, exactly.

    of course, i could throw out a number about 2/3 of what
    it should be, and then just grind *him* for whatever i
    can shake out of him.

    my best money might be made before i turn a shovel
    as well. and it'd be fun to watch him scream.

    and if he doesn't do it, then he can try to find someone
    else to do it for that number. good luck with that.

    i've found my worst customers are my best teachers,
    and increase my profitability bigly.

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  8. #28
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    GC awarded with my number, now wants to negotiate

    Quote Originally Posted by mkgrady View Post
    I would offer to deduct the cost of your subs quote but keep the markup. Keeps your profit the same.
    Yeh no O&P margins would be returned.

    I've yet to call the GC back; I've got a strong inclination to not even return a full cost deduction if we do it. I left more money on the table than I'd like, so if they want to negotiate, maybe I negotiate to my favor. Actually, after writing this I've decided that's exactly what I'm going to do.

    If he didn't do it already, I think it's equally fair to have the sub keep his networking profit on the fire alarm.


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  9. #29
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    Quote Originally Posted by don_resqcapt19 View Post
    All that means is after the first time you do that, you never get my best price up front. I will be leaving a lot of room for you to try that. In fact, often after the first time, there is no second time.
    Quote Originally Posted by ptonsparky View Post
    Makes you want to be his sub doesn't it?
    Quote Originally Posted by Fulthrotl View Post
    thats nice. so, i give you my best price, knowing it's going to
    affect your number, affecting YOUR chance of getting the
    job.

    then you get the job, USING MY NUMBER, among others, and
    as a matter of policy, then grind me, before we go any further.
    just to see if you can shake some money out of me for free.

    i'll say nothing further. i can't type and spit at the same time.
    Ahh you are all far too emotional about it. In this area you are the best value or you are not. We have great relationships with our subs and our customers. We do not screw anyone. If anything, a thorough review and a round of negotiation after award is just due diligence. Moreover it serves well to get the project handed off to the project team and allows the superintendent and project manager a real fast and effective way to get their head around the fine points of the project. Many times things are double scoped or not scoped at all or some fine print note on the drawing or VE approach creates an opportunity to put a little more in the contingency line. There is a lot going on behind the scenes at the GC office right up to the point that the bids are ripped open and many many things are missed or doubled up simply due to lack of time. Just because a GC uses your number on bid day it does not obligate them to use you even if your name is on the proposal, at that point it just means that your number is worst case. You guys probably never turn in your number a half hour before bids are due and surely always read the specification but you would be surprised at how many people come up with 100 things that they missed, overlooked or "meant to exclude" on their bid 15 minutes after a sub-contract is signed. A good second look from the GC will catch several of those things buried in the drawing or the specification that were overlooked and often there are savings there.

    #PrudentPrePlannigPreventsPissPoorPerformance

  10. #30
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    GC awarded with my number, now wants to negotiate

    Quote Originally Posted by luckylerado View Post
    You guys probably never turn in your number a half hour before bids are due .....
    That's because most manufacturers won't release gear and fixture pricing until an hour of the bid time on large projects. On the smaller stuff the suppliers will usually build up a package and price it in-house on the gear. Fixture suppliers are the worst, and if you ask for it early, you will get a terrible quote. It's equally as frustrating for us as it is for you, but because so many people shop quotes around, the manufacturers have put an end to sending quotes early.

    I send my proposal without a price as early as possible for review, and then I send a price as soon as I have it.



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