Why do union companies win bids vs non-unions in govt construction contracts?
- Thread starter JEDI
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IronWing
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- Jul 20, 2001
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I spec a lot of jobs for bid. Not on the gubment level but private, I can only assume my private experience can be taken into consideration for gubment bids. I have also been on the other end of the deal. Keep in mind that gubment bids have extremely stringent mandated rules by law but it is not unlike private industry.
This is experience talking - union is more expensive, BUT you get what you pay for. A lot of it is relationships eitherway and trust. I trust those I have done business with and union shops deliver and are worth the premium, when I find a non-union shop offers the same level of quality and meets my specs then I stick with them. You will find that union vs. non-union bids depends on the company.
"It's complicated" would be an understatement.
This is experience talking - union is more expensive, BUT you get what you pay for. A lot of it is relationships eitherway and trust. I trust those I have done business with and union shops deliver and are worth the premium, when I find a non-union shop offers the same level of quality and meets my specs then I stick with them. You will find that union vs. non-union bids depends on the company.
"It's complicated" would be an understatement.
fly by night rats like to cheat the system, gov't wont let them.
btw, Union companies beat non-Union competitors everyday on any kind of job.
btw, Union companies beat non-Union competitors everyday on any kind of job.
It does not in any way shape or form. You generally toss out the lowball offers because you know what the job will take. And you specify the qualifications in the contract and spec.
It just so happens that the specs on labor you are allowed to make sure you have qualified people.
BoomerD
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- Feb 26, 2006
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Prevailing wage laws. The Davis-Bacon laws require non-union companies to pay their employees the "prevailing wage for the industry," which is generally based on the union scale in the area.
Not surprisingly, (to me) Modesto filed "Charter City" a few years ago which lets them bypass the "Little Davis-Bacon laws" and contractors are NOT required to pay prevailing wages. The union contractors still get about 80% of the bids. The union contractors do better work, do it faster, have fewer "re-dos" than the non-union contractors, and in general, far outperform their non-union competitors. About the only work the rat contractors get are small jobs that the bigger contractors don't really want. One local rat contractor has been banned from bidding on city/county jobs by several local cities and (at least) 2 counties. Shoddy work, take forever to get the job done, and they always have to re-do parts of the job.
THAT, in a nutshell, is why union companies keep winning bids on government contracts.
As an employee, IF you're good enough to work for one of the union contractors, why would you want to work non-union? Sure, you have to pay dues, (currently about $70/month IIRC, but there's at least $10/hour difference in wages...often as much as $25/hr difference. Us union people call that difference in wages "non-union dues."
You wouldn't want your friends to know you couldn't add, would you?
Originally posted by: BoomerD
Prevailing wage laws. The Davis-Bacon laws require non-union companies to pay their employees the "prevailing wage for the industry," which is generally based on the union scale in the area.
Not surprisingly, (to me) Modesto filed "Charter City" a few years ago which lets them bypass the "Little Davis-Bacon laws" and contractors are NOT required to pay prevailing wages. The union contractors still get about 80% of the bids. The union contractors do better work, do it faster, have fewer "re-dos" than the non-union contractors, and in general, far outperform their non-union competitors. About the only work the rat contractors get are small jobs that the bigger contractors don't really want. One local rat contractor has been banned from bidding on city/county jobs by several local cities and (at least) 2 counties. Shoddy work, take forever to get the job done, and they always have to re-do parts of the job.
THAT, in a nutshell, is why union companies keep winning bids on government contracts.
As an employee, IF you're good enough to work for one of the union contractors, why would you want to work non-union? Sure, you have to pay dues, (currently about $70/month IIRC, but there's at least $10/hour difference in wages...often as much as $25/hr difference. Us union people call that difference in wages "non-union dues."
You wouldn't want your friends to know you couldn't add, would you?
So true. Union labor is very much better. One just has to decide if it's worth the premium.
Originally posted by: BoomerD
You wouldn't want your friends to know you couldn't add, would you?
:laugh:
You get what you pay for. With Union construction, you know you'll get quality while with non-union clowns, you'll most likely get idiots that don't know what they are doing.
You can't be serious? I mean I know you have experience but I can't believe low bidder always wins.
MagnusTheBrewer
IN MEMORIAM
- Jun 19, 2004
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MagnusTheBrewer
IN MEMORIAM
- Jun 19, 2004
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