Seems strange to me

Status
Not open for further replies.
S

sparky 134

Senior Member
Location
Joliet, IL
A GC emailed a set of drawings for a 3200 sq.ft. medical office build out. Ten minutes later I received another email saying:

"The developer is requiring me (GC) to submit four bids from each trade for this project. I'm not trying to bid this project to death, just doing what the developer is requesting. I have loyalty to our regular subs."

Why would the developer care how many bids the GC gets for this project ? If the GC is too high then he doesn't get the project. The only reason I can fathom is the developer is set on using this GC only.

I know I'm not the cheapest so I'm a bit tentative about spending the time working on the bid.
 
P

pjmurph2002

Member
More than likely, the GC has the job.

In order for the GC to keep the job, the developer is sqeezing him. The developer needs the GC, however he doesn'e want him to be making to much on the deal. The developer is going to review the subs bids with the GC, and they will squeeze the subs down to their lowest number. Once all of the subs are lined up, the developer will than have all the costs, and can now squeeze the GC.

Be creative, talk to the GC on the side and try and cut a deal with him. Build some monies into your quote for the GC on the side. This will get the GC to favor your quote.
 
bradleyelectric

bradleyelectric

Senior Member
Location
forest hill, md
This could pay out a lot of ways with the GC. If he is secure with the job, where you fall money wise could depend on who he decides to send the ITB's to, knowing who is usually where with their numbers. He could also sell the developer on not the lowest bid.

This would prompt a phone call to the GC to see how he intends to play it. Depending on my relationship with the GC would dictate how I responded from there.
 
C

charlietuna

Senior Member
My take: Your not going to get the job--he's looking for a few "Comp bids" to make his subs look good to the developer. Shoddy GC here!
 
growler

growler

Senior Member
Location
Atlanta,GA
sparky 134 said:
"The developer is requiring me (GC) to submit four bids from each trade for this project. I'm not trying to bid this project to death, just doing what the developer is requesting. I have loyalty to our regular subs.
Click to expand...


The fact that he is getting four bids is not nearly as important as which contractors he gets these four bids from.

I could put a job out for bid and get four very similar bids or I could open it up to every Tom, Dick and Harry and get bids that are all over the place.

I would call and ask who he is getting ( other contractors) to bid the job. You may be in good company or he may open the door to everyone. If he only puts it out to quality contractors then you may have a real chance.
 
N

nakulak

Senior Member
you guys are so quick to bash GCs. Maybe he is doing you a favor by being upfront about getting other bids. I only have 2 comments:
a) there is only 1 question - does he have the job ?
b) maybe by letting everyone know that he is putting out for so many bids, he is really trying to tell you - "don't go low, I'm not asking for any favors" ?


just my 2 cents
 
A

AV ELECTRIC

Senior Member
What is the advantage for the GC? Its like the developer is running the gc business .The gc gives a price and the customer decides to accept it end of story.Something sounds fishey it would make more sense for the gc to get alternative bids to see were you are at on prices not the developer. So it comes down to bidding this project. To not bid gives you no opportunity to get the job.
 
S

sparky 134

Senior Member
Location
Joliet, IL
I'm thinking the developer is forcing the GC to present all four of the bids from each trade to him (developer) and he will add up the lowest from each trade, add a markup he deems appropriate, and tell the GC what the project cost will be.

The worst part is the GC will still be on the hook for completing the project with the lowest bidders which may or may not be good depending on the quality of the subs.
 
S

sparky 134

Senior Member
Location
Joliet, IL
pjmurph2002 said:
More than likely, the GC has the job.

In order for the GC to keep the job, the developer is sqeezing him. The developer needs the GC, however he doesn'e want him to be making to much on the deal. The developer is going to review the subs bids with the GC, and they will squeeze the subs down to their lowest number. Once all of the subs are lined up, the developer will than have all the costs, and can now squeeze the GC.

Be creative, talk to the GC on the side and try and cut a deal with him. Build some monies into your quote for the GC on the side. This will get the GC to favor your quote.
Click to expand...

This may work unless the developer is seeing the subcontractor proposals.
 
jmsbrush

jmsbrush

Senior Member
Location
Central Florida
nakulak said:
you guys are so quick to bash GCs. Maybe he is doing you a favor by being upfront about getting other bids. I only have 2 comments:
a) there is only 1 question - does he have the job ?
b) maybe by letting everyone know that he is putting out for so many bids, he is really trying to tell you - "don't go low, I'm not asking for any favors" ?


just my 2 cents
Click to expand...

I never in my whole career met a general contractor who didn't ask for favors.
Bid this one low and I'll give you all my work. Oh I can't do this price, you need to sharpen your pencil on this one.
Most Generals that I know make money by squeezing there subs. Heaven forbid if we make 10%.
 
E

emahler

Senior Member
my gut is this GC, who is loyal to his subs, is getting 8-9-10 bids per trade and will submit the 3 higher than his sub, plus his subs for a total of 4 bids...

this will appease the developer, and allow the GC to do the job for his price with his people....

unless, he's a real snake, and he just throws his subs under the bus for the lowest price...most likely, he'll squeeze his subs to match a lower price - because 'he's loyal to them'....so he'll submit their original quote, satisfy the developer that their quotes are lower than the others, and make some extra money in squeezing his subs...
 
S

satcom

Senior Member
emahler said:
my gut is this GC, who is loyal to his subs, is getting 8-9-10 bids per trade and will submit the 3 higher than his sub, plus his subs for a total of 4 bids...

this will appease the developer, and allow the GC to do the job for his price with his people....

unless, he's a real snake, and he just throws his subs under the bus for the lowest price...most likely, he'll squeeze his subs to match a lower price - because 'he's loyal to them'....so he'll submit their original quote, satisfy the developer that their quotes are lower than the others, and make some extra money in squeezing his subs...
Click to expand...

From attending many of the GC's annual dinner get togethers, I can assure you that is most likely the way he in playing it.
 
Status
Not open for further replies.
Top