another bid result - I'm horrified now

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CopperTone

Senior Member
Location
MetroWest, MA
just when I think thinks can't get worse. This bid was a prevailing wage job in boston, ma - 16 EC's bid - this is a low bid wins type job - no GC. The estimated value of this job was 55000

16900
29000
31700
34800
36200
38000
38972
40900
41550 * our bid
43000
48900
50000
52000
52167
54670
55000

my material quote and all other direct costs associated to do this job were 15650 (not including labor, overhead, burden, profit - profit? - whats that?)
the low guy would be doing it for free - what? the prevailing wage rate was almost 64/hr
I think I am going to stop bidding these jobs for awhile - too many idiots bidding - yes idiots I say.
 
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Dnkldorf

Dnkldorf

Senior Member
On these low bids you are bidding, are the low bidders getting the actual awards?

Some low bidders get thrown out for not being bondable, no business references...ect.

Is this true, the guy who bid the 17K actually got the award and is doing the work?
 
mivey

mivey

Senior Member
Are these low bidders huge contractors? Are they buying supplies by the truckload so they can have a lower average supply cost?

Are these good quality contractors?
 
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charlietuna

Senior Member
The longer your in business the more "GAMES" you will find in the bid process!!
We bid one job and there was $110K fix on the switchgear alone --- Supplier set up with one contractor. I found out about it later and stopped dealing with the supplier. Years later the supplier explained this contractor owed him $89K and was going bankrupt if he didn't get this job!!! So the contractor got the job and payed the supplier back his owed money from other jobs!!!
 
peter d

peter d

Senior Member
Location
New England
If anything, your string of recent postings on bid results proves there are some contractors out there who have absolutely no clue what they are doing!
 
Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
peter d said:
If anything, your string of recent postings on bid results proves there are some contractors out there who have absolutely no clue what they are doing!
Click to expand...

Look at all the guys trying to make the jump to contractor,jobs that use to get 5-6 bidders now get 15-20.These guys that made 20 bucks an hour at their last gig think charging 30/hr is big money.
 
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emahler

Senior Member
Copper - do you have results for higher $ jobs? These jobs you are bidding are small. Very easily done by a 2 man shop (father/son deal) where neither is required to pay themselves prevailing wage.

Additionally, if they overstock on a T&M job, they can roll the material into this job and keep the material costs down.

Do these companies do maintenance for the entities putting the jobs out to bid? They may be able to make up some money on the maintenance side.

Also, I'd be interested in the spread on $250k+ jobs. Might be tighter.
 
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CopperTone

Senior Member
Location
MetroWest, MA
emahler said:
Copper - do you have results for higher $ jobs? These jobs you are bidding are small. Very easily done by a 2 man shop (father/son deal) where neither is required to pay themselves prevailing wage.

Additionally, if they overstock on a T&M job, they can roll the material into this job and keep the material costs down.

Do these companies do maintenance for the entities putting the jobs out to bid? They may be able to make up some money on the maintenance side.

Also, I'd be interested in the spread on $250k+ jobs. Might be tighter.
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I do not because I only get the ones we bid on. it is all public information and I could get the information on say million dollar jobs but since we are not in that neighborhood I don't bother seeking it out. I just don't have time.

I also think that just because legally you don't have to pay yourself prevailing wage - why wouldn't you? - aside from you want to work cheap to get a bid. - why torture yourself?
 
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emahler

Senior Member
CopperTone said:
I do not because I only get the ones we bid on. it is all public information and I could get the information on say million dollar jobs but since we are not in that neighborhood I don't bother seeking it out. I just don't have time.

I also think that just because legally you don't have to pay yourself prevailing wage - why wouldn't you? - aside from you want to work cheap to get a bid. - why torture yourself?
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i don't have an answer...probably figuring that they will get their foot in the door and raise their prices later...

why does anyone in our industry ever tell someone else that they are charging too much for electrical work?;)
 
Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
CopperTone said:
I do not because I only get the ones we bid on. it is all public information and I could get the information on say million dollar jobs but since we are not in that neighborhood I don't bother seeking it out. I just don't have time.

I also think that just because legally you don't have to pay yourself prevailing wage - why wouldn't you? - aside from you want to work cheap to get a bid. - why torture yourself?
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The answer is that prevailing wage often is not the "prevailing wage".I worked a small town years back and the county prevailing wage was based on local 1 St Louis wages well we were about 200 miles away and we were well below that.I think they were at 17.00 on the check plus bennies and we were around 12.00 no bennies.So a local contractor looks at paying $25.00/hr on the check or $12.00/hr and he chooses $12.00.
 
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Profish00

Member
Location
Houston
Looks like a re-bid, Ask questions. It looks like your close to actual cost to me.:-? Lot of those bids will go away from the other contractors. :D.
 
Engineer83

Engineer83

Member
Location
Wisconsin
This is all to familiar. As much as we would like to stay away from public jobs, these seem to be the only projects which have funding (thank you taxes). I just had one last week. A new pump house with controls and a genset. Quotes alone (genset/controls/lighting) were about $320k. Low bidder was $384k! I am hoping this recession will weed out a few more of these "contractors". As the saying goes....."rec rooms, rest rooms and reactors"
 
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benaround

Senior Member
Location
Arizona
Let's say an EC had made some good profit and was going to have to pay $50,000 to Uncle

Sam for taxes, But instead the EC decides to "low ball " a job to reduce his taxable profit.

Either way the $50,000 has to go. Nice way to get a new GC working with you.
 
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emahler

Senior Member
benaround said:
Let's say an EC had made some good profit and was going to have to pay $50,000 to Uncle

Sam for taxes, But instead the EC decides to "low ball " a job to reduce his taxable profit.

Either way the $50,000 has to go. Nice way to get a new GC working with you.
Click to expand...

fairy tales? is that what this thread has been reduced to?
 
Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
benaround said:
Let's say an EC had made some good profit and was going to have to pay $50,000 to Uncle

Sam for taxes, But instead the EC decides to "low ball " a job to reduce his taxable profit.

Either way the $50,000 has to go. Nice way to get a new GC working with you.
Click to expand...

It would be easier just to buy a new truck
 
480sparky

480sparky

Senior Member
Location
Iowegia
benaround said:
Let's say an EC had made some good profit and was going to have to pay $50,000 to Uncle

Sam for taxes, But instead the EC decides to "low ball " a job to reduce his taxable profit.

Either way the $50,000 has to go. Nice way to get a new GC working with you.
Click to expand...


Now there's a novel idea. Give away $50,000 to save $17,000.
 
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