Lowballer? who knows?

[CopperTone]

I thought I lowballed a job last week because we needed the work. I get the bid results - made me sick - and pissed at the same time . How can you win?

the results - obviously without knowing the scope of work- but here it is.

48K
72K
82K
103K
104K


I was the 72K - even if I tightened up my number even more - I could only take out maybe 4k-5k - that would be bare bones - and we better hustle.
Tell me what I'm doing wrong?

 

[mdshunk]

Tell me what I'm doing wrong?

I'd rather think you're doing it right, and the 48K guy is going to lose his back side. Either that, or he was at 72K also, and he spotted the potential for a fat change order that you didn't.

 

[SEO]

Work is tight I see a lot of projects going way low. He left a lot on the table. I would rather be in your shoes than his. Will they throw out the high and low?

 

[electricmanscott]

I'm not sure what you are mad about. The fact that you got out lowballed?

The other guys are probably more pissed at you and rightfully so.

 

[mdshunk]

Strong words. No wonder you're in Exile. :wink:

 

[electricmanscott]

Strong words. No wonder you're in Exile. :wink:

Am I off base though? :-?

Is this not the very guy we are always barking about?

I'm really not even sure what he's getting at, but I sure would like to know.

It's lonely in Exile. :grin:

 

[CopperTone]

very straight forward work - no potential for change orders

I should rephrase my bid opinion. I bid as low as I did at which I felt I still would make a profit. I also felt that as tight as my bid was, we had a great shot at winning the bid. I agree the 48k guy left a lot of money on the table or forgot something.

This was a public bid - no bid peddling or shopping - prevailing wage job - low price wins the job (qualified companies).

Believe me - I lose plenty of work to the lowballer

Here is another one I lost 4 weeks ago

33k
39k
46k
48k
51k

I was the 51K - oh, and I just checked - the low guy was the same company for both bids

My point to all of this , I could shave my profit - say 10% off - and still wouldn't come close to these lowest bids. That is why I ask what am I doing wrong - I know the answer - nothing - move on an keep bidding. I just thought I'd share this with everyone here.

Believe me - I'm not the one to be mad at.

 

[SEO]

It looks like your in the ballpark, keep bidding and if the lowballer keeps wining contracts and he's not makeing a profit sooner or later you won't have to worry about him.

 

[emahler]

someone should definitely audit his payroll and employees....Public works? certified payroll....verify hours and wages...does he have a lot of family working for him? people who may be afraid to lose their jobs?

that's too much of a discrepancy for that small of a prevailing wage job...

 

[dbuckley]

Depends - if the lowballer has deeper pockets then desite the fact he's losing money on every job (or at least thats what we believe), there are several other bidders, all qualified to bid, who are just not geting the work at all, and thus they will eventually (grouing for the right word...) "contract" (as in get smaller)

 

[emahler]

Depends - if the lowballer has deeper pockets then desite the fact he's losing money on every job (or at least thats what we believe), there are several other bidders, all qualified to bid, who are just not geting the work at all, and thus they will eventually (grouing for the right word...) "contract" (as in get smaller)

that's a stretch when talking projects of this size...not talking $mil projects with only a couple of players....talking micro projects with a ton of players...

 

[Buck Parrish]

that's too much of a discrepancy for that small of a prevailing wage job...

It sure is..

 

[ITO]

CopperTone-

The bidding aint over until the contract is signed.

Get your ass over to the GC and sell yourself. Show him your numbers and show him the other guy may not be able to finish the job.

If you want the work put your salesman's hat on.

 

[growler]

that's too much of a discrepancy for that small of a prevailing wage job...

That's what I was thinking. Maybe it's a contractor that's new to doing prevailing wage jobs and doesn't understand how to bid them. Or it could be a residential contractor that doing his first few commercial jobs, they tend to bid real cheap for the first few and then they learn better or go broke.

 

[ohm]

CopperTone-

The bidding aint over until the contract is signed.

Get your ass over to the GC and sell yourself. Show him your numbers and show him the other guy may not be able to finish the job.

If you want the work put your salesman's hat on.

I bid a fire station where the low bidder was 30% under the crowd. Everyone left the opening laughing, except the lowballer. Well he withdrew his bid and I got it.

He who laughs last etc.

I suspect CopperTone will be hearing from the GC soon.

 

[CopperTone]

no GC - direct bid with the town municipality. They may not know the differnce beside the bottom line. I will call them in the morning to see if they in fact signed a contract with the lowest bidder yet.

 

[tyha]

IMO he left something out or doesn't know how to price work.

 

[masterinbama]

on projects like these where I come in close to everyone except the lowballer.I can almost always go over my bid sheets and find an assembly, or piece of equipment equal to the difference. Missed a school library addition by $9,600 a couple of months ago,sure enough that was exactly what I had put in for 2 4" conduits from the main tele-com room to the addition. This was not on the drawings but in an obscure little note in the specs.

 

[petersonra]

I don't know. Place I used to work often got beat out in competitive bids by similar amounts, and the competitors laughed all the way to the bank, even with their low ball bids.

Some people are just really good at targeting projects they want that they think they have some way of turning a buck on that others don't.

Or, they could be desperate to stay in business a few months longer and are taking stuff at factory cost just to keep going.

This is sort of a trade secret but I will let you in on something that sometimes goes on. It is possible to shift a substantial amount of labor from the outrageously high prevailing rate, to something more like what most people are actually paying by preassembling stuff off site and bringing the stuff in ready to plop in place. The less you do on site, the less PW you have to pay. And usually it takes less time that way, so you win on both accounts. And many PW jobs require some fixed and usually arbitrary assignment of how many apprentices versus journeymen that can really create havoc where it is not needed.

I have seen ECs go in and measure up stuff and come back a few days later with prebent and precut conduit, already threaded, and ready to put in place. You have to really know what you are doing, but if you are good at it, you can save a ton of money. I am surprised more people don't do it.

 

[cal1947]

electrician

electrician

why you say outrageously high, it's a fair wage