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Bid Opening

Discussion in 'Bidding & Estimating' started by Big Daddy, Sep 3, 2010.

  1. Big Daddy

    Big Daddy Member
    from Ohio
    Messages: 32

    Attended a bid opening and was shocked and discouraged at the session. Only 4 submissions for the entire proposal...The lowest bid was $6K lower than the lowest bid from 2 years ago. The winning bidder (from prior year) re-bid again this season and lowered his bid by nearly $4K from the previous season...It is sad to see major players in a professional industry having to "drill" down pricing in order to get business and be in the game. We priced it fair, priced it within reason and so that we can make a profit. We will not stoop.

    I do not understand why you would just turn in such an insanely low price and think you are going to turn a profit or be viable. Are we missing something? Thanks for listening to us vent. On the positive note, nothing says they will get the bid and/or all of it. We still are remaining optimistic until the chips fall where they may.
     
  2. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    well if the guy who did it last year was able to lower his number by 4k, he might have over bid it last year, and found that he was able to be much more efficient than he thought he could be. also are we talking 4-6k on a 150k job? or a 8k job? In my neck of the woods I'm finding that creative contracts which are hiding things from plain sight are the biggest problem, tricky contracts with what seem to be low prices.
     
  3. Big Daddy

    Big Daddy Member
    from Ohio
    Messages: 32

    We are talking about $31K job total and honestly... we have reviewed the specs, salts costs, etc... It is an uncomplicated contract... and yet, if there is a creative loophole, I would like to know what it is .. because my attorney failed to find it... It is just sad to see that we are "lowering" bids this season...all the submissions across the board were lower than they were 2 years ago... So, if that is indicating anything .. then I am worried...
     
  4. Big Daddy

    Big Daddy Member
    from Ohio
    Messages: 32

    The lowest bid submitted today was 20% lower than the lowest winning bid was 2 years ago...
     
  5. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    not snow related but close
    Guy told me the story of the city getting bids for large scale mowing (weed mowing, if you will, not lawns)

    The guy's bid this year was $15/hour lower than last's winning bid.
    The winning bid this year was $47/hour

    for a 15' mower!!!!!!!!!!!!!!!!!!!!

    I get more money than that for a guy with a weed eater.

    He won't be in business long. But meanwhile it kills everyone else. nobody makes money and now the city thinks that's a normal price.

    I reviewed my books from last year to this year and I don't see where my taxes have gone down (in fact the opposite), insurance, fuel, maintenance, etc, etc, etc.

    I don't see anyone else's costs going down either.

    If they want to work for free, let them.
    Keeps them busy while you take jobs you can make money on.
     
  6. timberseal

    timberseal Senior Member
    from 46385
    Messages: 247

    I have a few local companies here that have a hell of alot more equipment that I do bidding at $50 an hour. It doesn't make any sense.... crazy thing was I still managed to get the contracts last year at a much larger premium. Loyalty was on my side I guess :)
     
  7. Raymond S.

    Raymond S. Senior Member
    Messages: 513

    You got to feed the animal once you get to be a certain size I guess. I pass the owner of the largest maintenance company in our area just about every night on the way home and often times in the morning. I often wonder which one of us are putting more in our pockets at the end of the day. His headaches are probably more than mine and my body probably aches more than his. Chances are he's doing alright for himself but I can't help but wonder how much more that really is. They've got a crew in one of my major neighborhood that shows up in a 24'Isuzu cab over or there about with atleast a 24' trailer loaded with 3 ZTR mowers and gear. They've got 3 mexicans that climb out and get to work. 2 guys mow and the other trims. To be fair they're about 10 minutes faster than me on a 40min cut (so they're done in 30). I have lost jobs to them on price by $5 sometimes $10 or more. These large companies just have to be running on the thinnest of margins.
     
  8. TPC Services

    TPC Services Senior Member
    Messages: 875

    seams that we are having the same thing going on here. one of the larger lawn care companies got the bid to do 500 acres of the school district here for $27 bucks an acre (WTF) I've gone by the schools they do an let me tell you WOW they look like crap. I thinking the bid was for no weed eating at all becasue none of its been done that or they do it once a month!! same with the city parks. What they are doing is killing them on extras or hidden material costs that an cheap labor. Bet he's only paying those mexicans $8 an hr if your lucky. Or could be using them as labor subs. One guys takes the money from the company and says he owns that crew or a bunch of laborers so in turn that company pays him then he pays his guys an in turn thats company doesn't have to pay, pay roll tax's an work comp on them!. Don't Know if thats a fact but It's a thought!
     
    Last edited: Sep 5, 2010