electricmanscott
Senior Member
- Location
- Boston, MA
GC gets price from contractor A
GC Lands job.
GC Finds contractor B will give a better price.
GC chooses contractor B and GC makes more money.
Makes sense to me.
Bid shopping or peddling
- Thread starter Sierrasparky
- Start date
- Status
GC gets price from contractor A
GC Lands job.
GC Finds contractor B will give a better price.
GC chooses contractor B and GC makes more money.
Makes sense to me.
USMC1302
Senior Member
- Location
- NW Indiana
Sure, it benefits the GC's, but I have also seen it come back to haunt them on occasion. It may take awhile, but what goes around comes around....
But now if I'm contractor A I will never bid the GC again. There are only so many electrical contractors in town you can't afford to burn too many bridges.
You are taking advantage of a short term gain, but in the long run it WILL cost you.
LarryFine
Master Electrician Electric Contractor Richmond VA
- Location
- Henrico County, VA
- Occupation
- Electrical Contractor
What if GC gets bids from contractors A, B, C, D, and E? Then he picks the lowest one out of them. (Let's say I'm contractor C.)
How does that affect contractors A, B, D, and E? Why does what happens "after the contract is award" change anything?
How would I know my bid was the one the GC got the contract with? If I never got a signature, I'm still just one bidder of several.
How does that affect contractors A, B, D, and E? Why does what happens "after the contract is award" change anything?
How would I know my bid was the one the GC got the contract with? If I never got a signature, I'm still just one bidder of several.
Jps1006
Member
- Location
- Northern IL
Another way to look at is this... You have to weigh what relationships you are willing to invest yourself and your company with. Contrary to our own wishes, we don't have an unlimited supply of time and energy (T&E) to invest with everyone, and wait to see which relationships pay dividends. We have to be selective.
As guys like this begin taking up your T&E it is likely you may be less available for others. The next thing you know these aggressive control type personalities are gaining a larger foothold on you, your profits, your choices, your stress levels, etc. Also, you contribute to their success. This becomes the new model. The only way for other GC?s to successfully compete against them is to adopt their tactics too, only more aggressively. Now this becomes the norm across the entire industry.
I used to have a GC that only got one electrical price from me. When he got the job, I got the job. I picked him up when the EC before me got too busy and flipped a coin. The GC felt betrayed and his loyalty came to me. Then I got frustrated with the GC, felt that the risk exposure was getting high because of how he handles his customers etc, . My prices began reflecting that and I lost the account when he checked my number after losing a bid. That was it for me, he?s either back to his old gut or closed his doors.
It?s funny, this caught my attention because I just got a call today from a new GC that was awarded public work and still wants more EC prices. My concern is that this guy will use my number to get ?his guy? lower. I used to get that from another guy that I am now turning down ITB?s from. He used to call me and tell me the job was mine if I could match so ?n so?s price. Once I said I wouldn?t and the other guy got it. Once I said I wouldn?t and I got it anyway. Once I said I would and effectively got last look. Same thing here though, my price was never my best price at bid, I always had to add a little. I am tired of playing with him and now I only look at his work if I?m the only one looking. He likes my service and expertise, so I get the PIA jobs, and the nice bid work goes to the low bidder.
I still haven?t decided what I?m going to do about the public ITB I got today, I?m leaning toward passing on it, but wouldn?t we all rather submit a price to the GC that was awarded the job instead of multiple GC?s wondering if you got a number to the guy that wins it?
As guys like this begin taking up your T&E it is likely you may be less available for others. The next thing you know these aggressive control type personalities are gaining a larger foothold on you, your profits, your choices, your stress levels, etc. Also, you contribute to their success. This becomes the new model. The only way for other GC?s to successfully compete against them is to adopt their tactics too, only more aggressively. Now this becomes the norm across the entire industry.
I used to have a GC that only got one electrical price from me. When he got the job, I got the job. I picked him up when the EC before me got too busy and flipped a coin. The GC felt betrayed and his loyalty came to me. Then I got frustrated with the GC, felt that the risk exposure was getting high because of how he handles his customers etc, . My prices began reflecting that and I lost the account when he checked my number after losing a bid. That was it for me, he?s either back to his old gut or closed his doors.
It?s funny, this caught my attention because I just got a call today from a new GC that was awarded public work and still wants more EC prices. My concern is that this guy will use my number to get ?his guy? lower. I used to get that from another guy that I am now turning down ITB?s from. He used to call me and tell me the job was mine if I could match so ?n so?s price. Once I said I wouldn?t and the other guy got it. Once I said I wouldn?t and I got it anyway. Once I said I would and effectively got last look. Same thing here though, my price was never my best price at bid, I always had to add a little. I am tired of playing with him and now I only look at his work if I?m the only one looking. He likes my service and expertise, so I get the PIA jobs, and the nice bid work goes to the low bidder.
I still haven?t decided what I?m going to do about the public ITB I got today, I?m leaning toward passing on it, but wouldn?t we all rather submit a price to the GC that was awarded the job instead of multiple GC?s wondering if you got a number to the guy that wins it?
LarryFine
Master Electrician Electric Contractor Richmond VA
- Location
- Henrico County, VA
- Occupation
- Electrical Contractor
Is there a way to know if/when you're the bid he won his contract with?
electricmanscott
Senior Member
- Location
- Boston, MA
You must be new to the game. YOU and I are and always will be replaceable. It's that simple. More importantly it is ALL about the dollars, period.
USMC1302
Senior Member
- Location
- NW Indiana
I am not new to the game,and I agree everyone is replaceable. What happens on private jobs is one thing. The original thread was about public works jobs. Depending on how the general conditions and CD's are worded, the GC, if that's how the job is bid, lists the subs he is going to use. As the bid openings are open to the public, and bids available for inspection; yes you can see who he has listed. If a substitution is made, the owner has to approve. Sure, the GC can give the subs a different deadline and beat everyone down BEFORE submitting his bid. After submittal, it does not have to be allowed, and isn't in my case.
electricmanscott
Senior Member
- Location
- Boston, MA
Then you have noting to worry about.
Yes - You always know. You call up the second and third place generals and ask for the electrical bid tabulations. They are happy to send them to you. Why you ask - because they know that by providing you this information it will reduce the possibilty of bid shopping.
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