Theres a hole in my estimate

[mgmelec]

How would you handle this situation? cause we got a "situation" here. I just submited a proposal to developer, was told by developer i'm the guy their gonna go with. Thats great news! right?

Here's the problem, i decided to double check the numbers and came across a 13k dollar hole. My estimator didn't get page 2 of the lighting quote.

Not to sure about how to present this to the developer. That amount adds up to more than the profit on this job.

 

[mivey]

Tell the developer about the mistake and the amount of the error. Tell him you understand if he has to go with a different contractor, but that you will be happy to bid on any future jobs. We all make mistakes, but there is no reason to go broke. You might offer to negotiate your corrected bid price if you feel you can.

Just be up front and honest with the developer. If he wants to work something out so you can still do the work, great. If he does not understand, he probably is the type of guy who never makes mistakes. :roll:

 

[ceb58]

Tell the developer about the mistake and the amount of the error. Tell him you understand if he has to go with a different contractor, but that you will be happy to bid on any future jobs. We all make mistakes, but there is no reason to go broke. You might offer to negotiate your corrected bid price if you feel you can.

Just be up front and honest with the developer. If he wants to work something out so you can still do the work, great. If he does not understand, he probably is the type of guy who never makes mistakes. :roll:

Cant do much more than that

 

[laketime]

Tell the developer about the mistake and the amount of the error. Tell him you understand if he has to go with a different contractor, but that you will be happy to bid on any future jobs. We all make mistakes, but there is no reason to go broke. You might offer to negotiate your corrected bid price if you feel you can.

Just be up front and honest with the developer. If he wants to work something out so you can still do the work, great. If he does not understand, he probably is the type of guy who never makes mistakes. :roll:

agree

 

[John120/240]

Mivey's proposed solution sounds like the right way to handle this.

But when you sign a contract to perform said work, can the general contractor

make you eat your oversight?

 

[hurk27]

Depending on how your estimator worded it, if it includes amounts of materials it can be an out, since the price only covers what is in the bid, but if it is just an over all bid and material amounts are not itemized then its a tuff go, last company I worked for bidded on a motel and left out the whole upper floor, but luckily we itemized everything and basically we said if you want that floor wired we need to add what was left out, and they went with it as we were still the lowest bidder beside a known low baller they didn't want anyways, sometimes you can hope to make up for the mistake on change orders but thats not a good way to do business.

I try to spell out what is being done in a bid and how much so this can be avoided and explained.

 

[mgmelec]

Mivey's proposed solution sounds like the right way to handle this.

But when you sign a contract to perform said work, can the general contractor

make you eat your oversight?

I agree that miveys solution is the way to go. Thanks mivey! My worry is what john has stated, legaly CAN he make me eat it? Or if he goes with the next guy, will i be responsible for the difference.

 

[fridaymean]

I agree that miveys solution is the way to go. Thanks mivey! My worry is what john has stated, legaly CAN he make me eat it? Or if he goes with the next guy, will i be responsible for the difference.

Typically they can only make you eat it if you signed a contract, or if you let them.

 

[kwired]

I agree that miveys solution is the way to go. Thanks mivey! My worry is what john has stated, legaly CAN he make me eat it? Or if he goes with the next guy, will i be responsible for the difference.

Typically they can only make you eat it if you signed a contract, or if you let them.

That is what I was thinking. From the way I read the OP I am assuming they have said they want him to do their work but have not had him sign any contract yet. He can always withdraw if necessary instead of signing. I would tell them the situation and see if they will let you change your bid, otherwise just withdraw it.

 

[cdslotz]

A good GC will call me if I have a glaring omission, or I'm really low and tell me I might want to "look" at my number. If I say I'm good, and he gets the job using my number, there's no going back.
A lot of GC's (the one's I wont bid because I know their MO) will run with a super low number because they fear their competition will run with it too.
I once bid a job to (3) GC's. It was a million dollar bid. I immediately got a call from two of the GC's that told me to look at my number, then told me I was almost 100K low. The third GC called me and said, "I would love to use your number, can you give me some more?" I kid you not.
Another sign that you are too low is when the GC ask you if you gave your price to anyone else.

Know your GC's.

 

[petersonra]

My estimator didn't get page 2 of the lighting quote.

Didn't get it as in he just forgot to include it, or it was missing in the requirements? is the estimator out looking for work now?

In most cases you are not required to accept a P.O., even if you bid a job and your bid is accepted.

I'd be inclined to call the guy and tell him you are going to have to withdraw your bid, and tell him why.

 

[mgmelec]

I spoke with customer today and explained what had happened. They were very cordial and understanding.

Here's something interesting, they had their in house estimator figure the electric on this project after i turned mine in to compare numbers. He came in 14k higher than me, and knew i left something out.

 

[hurk27]

I spoke with customer today and explained what had happened. They were very cordial and understanding.

Here's something interesting, they had their in house estimator figure the electric on this project after i turned mine in to compare numbers. He came in 14k higher than me, and knew i left something out.

Glad it worked out, it pays to be straight forward and honest, that way no one can ever say your trying to get over on them, and it builds trust you can bank on.

 

[Rockyd]

I spoke with customer today and explained what had happened. They were very cordial and understanding.

Here's something interesting, they had their in house estimator figure the electric on this project after i turned mine in to compare numbers. He came in 14k higher than me, and knew i left something out.

Sounds like a possible steady line of work if they "catch" a lot of work. Cool that you came in a little under what "their guesstimate" was, and that the numbers were tight - leading to the correct conclusion. Good luck with your project.