Missed it by that %$&# much!!!!!!

[D1gger]

So I had our estimator working for the last 3 days on a bid for a construction project that I wanted to get. After spending two hours reviewing the numbers today and cutting the costs to the bone and then putting a reasonable margin on the project, we lost the $550,000 project by less than $250.

There are so many small calculations such as crew production rates that we could have changed to get this project. I would much rather lose a project by a large amount, because I could always say I didn't want it at that low price, than to lose by such an insignificant amount.

This work would have kept a small crew busy for 2 months, but looks like we will have to find something else now.

 

[imported_Trippin315]

Life sucks, get a helmet

 

[dartworth]

What type of construction?

 

[D1gger]

Originally posted by: dartworth
What type of construction?

Road Construction / Asphalt / Curbs / Traffic lights.

 

[jagec]

What kind of bean counters does that company hire, that they compared numbers and nothing else?

If I was looking at two competing bids, and they were that close, I'd review the information and pick the one that looked like more for my money.

 

[KarmaPolice]

Ok. I was under the assumption that if two companies are that close in the bid for a job..they would go with the company that offered the most, had the best plan, or had the best history. I am probably wrong but why would a company that is going to spend 550k pick their builders just on 250 bucks...

sorry to hear that tho.

 

[D1gger]

Originally posted by: KarmaPolice
Ok. I was under the assumption that if two companies are that close in the bid for a job..they would go with the company that offered the most, had the best plan, or had the best history. I am probably wrong but why would a company that is going to spend 550k pick their builders just on 250 bucks...

sorry to hear that tho.

Some clients do judge the entire package, some do not. Most public tendering authorities, such as cities and higher levels of government don't have the courage to justify a choice other than the lowest price. Private owners on the other hand will occasionally decide that a 2nd place bidder has a better overall tender package.

 

[JS80]

At least you didn't risk overrun.

 

[Ornery]

Call me pessimistic, but I'm betting your competition has access to your bid on the inside.

 

[JDrake]

That sucks

 

[Slew Foot]

Hire some illegals.

That does seem like a bit of nitpickng though.

 

[bctbct]

Originally posted by: Ornery
Call me pessimistic, but I'm betting your competition has access to your bid on the inside.

Doubtful, as hard as it to believe many construction bids are sometimes very close. Many contractors use the same subcontractor bids so it comes down to how much profit you put into it....or finding a cheap sub your competitor didnt get a price from.

 

[ponyo]

It's part of bidding. You win some. You lose some. Of course if you bribe, you win lot more.

 

[olds]

Public agencies likely have to go with the lowest bid by law. Most contractors working for public agencies learn how to play the game. They end up making more money on change orders.

 

[D1gger]

Originally posted by: oldsmoboat
Public agencies likely have to go with the lowest bid by law. Most contractors working for public agencies learn how to play the game. They end up making more money on change orders.

SSSSH. Don't give away all of my secrets.