Loser

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Alwayslearningelec

Senior Member
Location
NJ
Occupation
Estimator
Have an interior reno job(mostly only receptacles and lighting) that started about 6 months ago and has another 2 years to go.

Total job value about $2M and I'm pretty sure I'm about 25% low unfortunately.

I posted about this a few months back. It's the job with 15 typical areas.

Maybe it's a gift and a curse that I know this earlier in the job but the job is so long.

We are already losing money and wayyyy under billed. Doesn't help we have $150k in change orders for work already performed but not paid. It's a public state job.


What would you do to try and mitigate the damage? Thanks.
 
It is unlikely you are going to get addition funds and probably won't make it up in adders.

Best bet is to try and get more efficient so you lose less money and hope you don't go bankrupt in the process.

Is there an option out clause in your contract?

You may want to talk with an experienced business attorney and see what he thinks.
 
petersonra said:
It is unlikely you are going to get addition funds and probably won't make it up in adders.

Best bet is to try and get more efficient so you lose less money and hope you don't go bankrupt in the process.

Is there an option out clause in your contract?

You may want to talk with an experienced business attorney and see what he thinks.
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If it's a public job, at that price, the OP's company had to put up a bond. If they walk away, the GC will go after the bond and that may affect his bondability in the future and may bar access to other public projects.
 
Try seeking a work force from a local trade school, work for experience.
Good luck, we all face challenges, but there is always a way to survive if you get creative.
 
gadfly56 said:
If it's a public job, at that price, the OP's company had to put up a bond. If they walk away, the GC will go after the bond and that may affect his bondability in the future and may bar access to other public projects.
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We did bond and won't be walking away.
 
petersonra said:
It is unlikely you are going to get addition funds and probably won't make it up in adders.

Best bet is to try and get more efficient so you lose less money and hope you don't go bankrupt in the process.

Is there an option out clause in your contract?

You may want to talk with an experienced business attorney and see what he thinks.
Click to expand...
We can't opt out. I may be out of a job...lol. Again i will say out of almost 2 decased as junior estimator and senior estimator I've never ever been fired from a company and I've probably only had less that 5 losers and not big ones. This one is gonna hurt.
 
I'm not a contractor, but I would push to get paid for all completed work, within the Terms and Conditions of your contract. Most public agencies are required by law to pay invoices within 30 or 60 days. Assuming your GC has the deeper pockets, I'd explain to him that you have cash flow problems. But if you think you want to work with this GC again, at the end of the day you need to keep them reasonably happy.

Not sure how many electricians you have, but some are always better and more efficient than others. You might have to make some tough choices on your crew.

But I'm just a dumb engineer, so take my advice with a grain of salt.
 
So I actuslly called up the GC's I bid the job to a year ago. I recieved the following reliable feed back from 3 GC's.

My number was $2M.

Other EC pricing $1.6M, $1.9M $2.1M, $2.8M, $3.7M & $4M.

insane spread. These are leveled prices and scopes are 100% apples to apples.

I was told by several that the guys at $4M routinely throws in pricing that is in multiples of other EC prices and I've seen that( I know the contractor). But there is still the $2.8 and $3.7 price.
Just maybe and HOPEFULLY my price not a sure loser.

Just gives me a little degree of comfort knowing there's a few others near me.
What would you think seeing these prices compared to mine? Thanks
 
David Castor said:
I'm not a contractor, but I would push to get paid for all completed work, within the Terms and Conditions of your contract. Most public agencies are required by law to pay invoices within 30 or 60 days. Assuming your GC has the deeper pockets, I'd explain to him that you have cash flow problems. But if you think you want to work with this GC again, at the end of the day you need to keep them reasonably happy.

Not sure how many electricians you have, but some are always better and more efficient than others. You might have to make some tough choices on your crew.

But I'm just a dumb engineer, so take my advice with a grain of salt.
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Yea this job job only requires (2) men, we have a foreman and apprentice. The foreman is 64 yr old and SLOW.
 
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