New GC just killed his relationship with us

[tyha]

we are doing a little 2 story retail shell for this GC we just started quoting work for. They sent us a invite a few weeks back for a bank they were pricing. we have priced about 7 and done 3 of the exact bank so we worked it up for them and sent it out. I called maybe a week later to see where we ended up and they said we were second by a few hundred bucks. right then I thought something was strange because very rarely are you a few hundred bucks off of a $160,000 bid. I didn't think much more about until I was at a pre bid meeting for a school and started talking with an old estimating buddy I used to work with about this new gc. he said they have been doing work for them for years and I asked him about the bank and he said they called them up the day after the freaking thing bid and said they had a budget number for a bank would they look at it. low and behold the budget number was my number. the number they used to land the job with and freaking shopped me out. i didnt tell my friend about it I just told him we priced it. I could not beleive they did it but then again. yes i can

 

[chris kennedy]

I could not beleive they did it but then again. yes i can

Don't get bent. This will happen to you again. You have never had a GC come to you and say 'Can you do this job for this number'?

 

[ceb58]

Next time get a time line for getting your bid in. Then submit it at the latest point. This way he may not have time to shop your bid before opening.

 

[Buck Parrish]

Call the GC and tell him you figured wrong. You can do it for $2500. less.
Then if he wants you to do the job tell him you are to busy.

 

[ishium 80439]

Next time get a time line for getting your bid in. Then submit it at the latest point. This way he may not have time to shop your bid before opening.

That is a lesson well learned. I had both an excavator buddy of mine and my ex partner who was an estimator tell me that if the bid deadline is 12:00 than fax the bid in at 11:55 to avoid the very situation you described. This is especially true if you do not have a long standing relationship with the contractor.

 

[ohm]

I went out for bid on a bunch of control valves. At the last minute a company that had bid $500,000 (and won) wanted to know if they could re-bid before the opening. I said sure and they chopped $40,000 off their price.

Within ethical limits you have to remember who you work for.

 

[Skyline Electric]

Bid one more job for this GC at half price. Then sit back and let the fun begin.

 

[bradyman1]

I have been on the both ends of this on the same job. We have a contractor that does public work (bidding for customers) and they also do their own developing. We exclusivly do the jobs that is owned by them and do 80-90% of the bid out work for the other customers. I have them use our number, and have us design the same job 3 or 4 times (design build) with different specifications, and then tell us well (insert another EC name here) said they can do the project for 15-20% less. I ask well is it apples to apples and they respond, yes I told them what you were going to do (there goes that trade secret about using stabiloy for feeders). So I get it from both ends, I already have to much time invested, and I know what I have to "buy" the job for. I told the owner of our company to forget these guys but it seems as if we ALWAYS cut our price to the supposed price of the other guy, and end up wishing for extra's so we can break even. Oh and did I mention they are extremely slow pay. 90-120 days is nothing for these guys.

I have also been on both ends of this with other contractors. If you put in a bid and they call you and tell you that you are 1% - 2% over budget and you need the job and like working with them it is hard to pass it up.

 

[ohm]

Bradyman, all of what you say is true. This is SOP in a big company. It's what they giggle about around the conference table and earns them a fat bonus after the job closes.

I've even heard one manager say the job wasn't over till the lawyers sued for the last drop of blood.

One project manager refered to adding workers by saying he was going to "throw more meat at the job to meet schedule".

He was eventually canned and I had the pleasure of sitting next to him at the airport one Monday morning. I was headed back to my project. He was headed to a new company, for less pay. He said "it was terrible that some managers had no respect for their people".

 

[Brady Electric]

New GC just killed his relationship with us

Chris said it right.
I've learned not to burn any bridges, never know when it might pay off in the future.
Loosing you was probably there loss but I wouldn't loose any sleep over it.
If my prices are the best my little company can do it doesn't matter what anyone else bids. Win some Loose some.
Have a GREAT day and Semper Fi Buddy
P.S. Not on the subject but we are finally getting allot of RAIN, Liquid Snow, and I haven't heard anyone complain about it.
Seems like the more we do without something, when we finally get it we appreciate it.
All life it like that.
Have a GREAT day

 

[SEO]

I've been in business for 35 years and it hasn't changed. I've had GC's hand other contractors prices over to me. Bad practice where are the ethics?

 

[Sparky555]

I worked with a GC a couple years on a large project that was half of my business & he finally shopped my bid. I talked with the guy that did it & he said he lost money on the first job. He raised his price & the GC called me to check his new price. I refused to bid it. Call me thin-skinned or old fashioned, but I value loyalty. The next year was my best year ever without this large project.

Dave

 

[tyha]

Next time get a time line for getting your bid in. Then submit it at the latest point. This way he may not have time to shop your bid before opening.

no. your misunderstanding me. they used our number and won the job and then 2 days later after they had they job is when they went and shopped it out.

 

[SEO]

Thats a part of business that makes it hard for a sub-contractor to ever make any money if you give estimates to that kind of contractor. The contractors name will precede him on future contracts and he'll have a hard time getting any legitimate subs to ever give him prices. It does go around.

 

[resistance]

Call the GC and tell him you figured wrong. You can do it for $2500. less.
Then if he wants you to do the job tell him you are to busy.

I've done this!! LOL!!

As others said, this want be the last time this happens!

 

[resistance]

Thats a part of business that makes it hard for a sub-contractor to ever make any money if you give estimates to that kind of contractor. The contractors name will precede him on future contracts and he'll have a hard time getting any legitimate subs to ever give him prices. It does go around.

Very True!
Sadly to say, maybe this is why some properties are being vandalized---others are seeking revenge against the GC!

 

[DanZ]

Very True!
Sadly to say, maybe this is why some properties are being vandalized---others are seeking revenge against the GC!

So, you're the one removing all the copper wire!!! Not to mention the copper water pipes. The A/C units...and well, anything else that might have value. :grin: :roll:

Sadly, bid shopping does happen. I've also heard stories from an Architect I worked with about a large construction firm's people sitting in a meeting and laughing about how they bid shopped and ended up running the little contractor out of business.

edit to add, Loyalty is usually just under the paycheck for these folks.

 

[jdsmith]

Does anybody put the line on their bids that "this document not be used in any way detrimental to the interests of XX company"? I accepted bids recently on a job at work and I think all of the quotes used that line. It means I can't bid shop in this case, but I imagine it would be difficult to enforce in court if someone tried.

 

[resistance]

So, you're the one removing all the copper wire!!! Not to mention the copper water pipes. The A/C units...and well, anything else that might have value.

Seeing that you didn't say stealing, I guess I am. But Just the copper wire!

Never have, and hope I will never have to! :smile:

 

[zbang]

Does anybody put the line on their bids that "this document not be used in any way detrimental to the interests of XX company"?

A previous employer put something in their proposals along those lines, but also included things like (trying to remember the exact words):

"This bid/proposal is presented solely for the purpose furthering a business relationship between MyCo and YourCo, no other uses are permitted. It may contain proprietary information of either party and may not be disclosed to parties not specifically identified in the proposal."

"This proposal is Copyright 2008 by MyCo. All Rights Reserved."

"Information contained in this document which was not provided directly by YourCo may not be disclosed to third parties without permission of MyCo."

You get the idea. Of course, I am not a lawyer .