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

  1. #1
    Join Date
    Mar 2007
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    GC awarded with my number, now wants to negotiate

    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.


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  2. #2
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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.


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    Seems to me they can choose the next higher bid that is $37K higher to try to save the $28K they want to save.

    You can bet the GC probably wants to line their pocket with the $28K they are supposedly going to save instead of passing it on to the owner.

  3. #3
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    That would just PMO!

    Otherwise, Nothing constructive from me.
    Tom
    TBLO

  4. #4
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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.
    i'm guessing you have worked with your sub before?
    i'm also guessing you have a reasonable profit built into your subs work?

    maybe the GC can also supply the material, and save some money there?
    maybe he could also supply you with some helpers?
    i wonder how else he could grind you.... i'm sure there is a way.

    that part highlighted in red above.... AFTER you said no, they did this? Gee Whiz?

    if it were me, i'd take the opportunity you now have to escape from this. it is
    a gift.
    Last edited by roger; 05-08-17 at 06:53 AM.
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    ~~~~Please excuse the mess.~~~~

  5. #5
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    Quote Originally Posted by kwired View Post
    Seems to me they can choose the next higher bid that is $37K higher to try to save the $28K they want to save.

    You can bet the GC probably wants to line their pocket with the $28K they are supposedly going to save instead of passing it on to the owner.
    I am 100% certain they want to put the money back in their pocket.

    I'm also fairly certain the next lowest bidder went with my same subcontractor. That EC is also local, and the sub I used is the only vendor in this area for the fire alarm that was spec'd.


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  6. #6
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    Quote Originally Posted by Fulthrotl View Post
    i'm guessing you have worked with your sub before?
    Yes.

    Quote Originally Posted by Fulthrotl View Post

    that part highlighted in red above.... AFTER you said no, they did this? Gee Whiz?
    YES!!!

    Quote Originally Posted by Fulthrotl View Post
    if it were me, i'd take the opportunity you now have to escape from this. it is
    a gift.
    That's what I'm leaning towards. This situation has me pretty apprehensive about working with this company.

    It's been almost two weeks since this job bid, and after being told we would be awarded the job, they ceased all contact. I'm certain at this point they were shopping my bid around and were unsuccessful.



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    Last edited by roger; 05-08-17 at 06:54 AM.
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  7. #7
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    I think your instincts are right on, and all this before a shovel hits the ground. Imagine how well you'll get along towards completion?

  8. #8
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    This has red flags all over it. Do you need the work?

  9. #9
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    Dec 2016
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    Royal City, WA
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    Did the GC have to list you as a subcontractor in their bid proposal? Here in Washington, that is now required because of bid shopping GC's. The GC cannot change a subcontractor after the bid opening without approval of the consulting engineer.

    if you don't plan on working with this GC in the future, I'd fry his ash and report him to the owner/consulting engineer. What the GC is trying to do is just plain wrong, and you don't have to stand for it.

  10. #10
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    FM (sound it out).
    Electricians do it until it Hertz!

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