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excessive underbidding
March 2, 2009
10:04 AM
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James,
you are exactly right. I don't exclude anything any more. I add things now like power, water everything that pertains to the demo scope I cover it.

March 2, 2009
7:04 AM
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demobud;11002 said:
Yeah, it makes you wonder why the GC's don't see that there is a problem when one guys bid is so much lower than the pack.
It always gonna cost them more in the long run to use the hucksters.

Most of the time the GC's don't care, they are going to take the lowest bid most of the time no matter what.

One thing to overcome this, that we have done in the past, offer up something better. Give them something to think about on what you are offering that is different then everyone else.

We offered hepa fans on all of are interior demo projects, it was no real cost to us, but we offered something no one else did and when you explain what a hepa fan is meant to do, they jumped all over it.

February 25, 2009
4:04 PM
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February 11, 2009
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Just remember these guys are playing the cash flow games, they just need any money to get threw.......be patient......nature will do its course.....

February 22, 2009
7:03 PM
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Yeah, it makes you wonder why the GC's don't see that there is a problem when one guys bid is so much lower than the pack.
It always gonna cost them more in the long run to use the hucksters.

February 22, 2009
1:39 AM
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February 14, 2009
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There is a company here in Michigan that went out and cut everybody's throat for a long time trying to make a name for themselves. For a while they had ALL the work as far as strip outs go. Long story short they are now on the way out of the biz! Just another fly by night so called wrecking outfit. We are now getting those customers back and still telling them that we think our price is fair. If you can hang in there, these fly byes ALWAYS fly bye. The guy that was running the demo operations for that outfit was ripping them of on the scrap real bad too so, that did not help either. In past experience I can always find a "shyster" behind these low ballers.

February 16, 2009
6:52 AM
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NukeWorker;10905 said:
Typical GC view on demolition

"It's so easy a Caveman can do it"

I know, and yet, I have been called in to "fix" many a GC's attempts to perform selective demo over the years.

February 13, 2009
10:42 AM
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NukeWorker;10870 said:
My buddy works for a big nationwide GC. He told me it's corporate policy to cut a sub's bid by 15-20% when they put their bid together because they know they can beat the sub over the head and they will cut their price by that much just to get the job.

I am pretty sure I've worked for that GC. I can be pretty stubborn when it comes to my numbers. I have had more than a few "discussions" about numbers with GC's.

February 11, 2009
8:49 AM
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they need that 15/20 % to cover their tail when they get the job screwed up by lowballing it. Wish they would self perform the work and see what it really cost to do it right the first time

February 6, 2009
9:45 AM
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Bid results for a public job in pitman new jersey: 3. Hargrove demo. $32k, 2. Franchi Wrecking $28k, 1. Niri contracting $18k. I believe it was for a single building. Low bidder left $10k on the table, what a fool.

February 5, 2009
9:40 PM
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demopro;10823 said:
But it does go to show that some GC's care more about that bottom line dollar than a good product.

can i correct you? i would make that sentence "But it does go to show that MOST GC's care more about that bottom line dollar than a good product"
I still think its strange that the GC's haven't figured out that the really cheap guys are usually the most expensive in the long run...

February 5, 2009
10:58 AM
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January 18, 2006
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I don't know if they illegal labor. but it looks they start around 7am as I went by the job and they were still around 9.30pm as I was in the city for a meeting late last night. So I know they were not paying overtime and I have no idea where the debris when as there was no bin or truck to take the debris away.. I know that times are tough we are a small startup company and I know we have been cheap on a couple of job but there was still enough money in the job to make a small profit. The only people how are benefiting are the building owners because when and if we come out of the big slump they will still want all jobs done for nothing.

February 5, 2009
10:04 AM
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its funny when watching those cheap guys take house's and such with a rubber tire backhoe and u c the tire guys truck there 2-3 times, it take em a week and then
someone else gets called in to clean up the mess and the gc whines about the contractor who won the job. hope they learn they get what they pay for. but they wont they will play the back charge game. I can understand the need for a GC but I think they need to self perform some of the work instead of sub en it all out.

February 5, 2009
6:37 AM
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demopro
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I recently saw a select demo project worth in my mind about $220k and a drywall contractor took it for $130k. I would definately call that excessive under bidding. I can't wait until this job gets hacked to pieces by an unqualified contractor. But it does go to show that some GC's care more about that bottom line dollar than a good product.

February 5, 2009
5:21 AM
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In my area i get underbid on the houses and small buildings by an electrical contractor and tree removal guy . They consistently cut the jobs in half .The electrical guy bid a public job in nearby town and left $75k on the table on seven houses.

February 4, 2009
10:32 PM
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Wolf;10817 said:
How could they bid it so low?

because they are not bankrupt yet... but now they are 4000$ closer to quit bidding:rolleyes:

I calculated a really big asbestos abadetement work, it contained hundres of tons of Asbestos waste and a half year work for about 6 people.
The project was (in short) to remove 2700m2 of asbestos containing paint of the 7 story building facade, and to remove the 3-6cm thick plaster after that. on the roof there was almost 1000m2 of double layer water insulation bitumen that also contains asbestos, to make things worse the bitumen layers had concrete on top, between and under.
The concrete under the asbestos was a cavity design (?) it had to be opened and the old "insulation" had to be removed and all the wood removed.
so there was need for a wacum truck for at least 2-3 months, thats BIG $$$

the job was a innercity project so spacing for cranes and stuff was problematic.
i put a bid that i thought should be ok, the price was at 289000

February 4, 2009
3:56 PM
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Wolf
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wow, scott. that is ridiculous. do you think it is all illegal labor they are using or what? How could they bid it so low?

February 4, 2009
2:32 PM
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I just bid a job in downtown San Francisco yesterday . a small TI job we were very tight at $5300 this job had a bunch of tile walls and 200ft of 13 feet high sheetrock walls I thought it was one bin and then the rest was labor. some two truck tommy give them a bid of $1750. I just don't know how to make money at that price.

February 4, 2009
4:04 AM
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I have been bidding demo for a long time now and it has always been big differences on bids. the scopes are what are the problems if it is a total tear down thats different but we do mostly selective type demo and the scopes are what is different. I now see more and more GC's putting out scopes to bid on which I love. it makes it easy for them because they are comparing apples to apples not apples to grapes. I dont hear the old line as much " I am comparing scopes I will get back to you"

January 6, 2009
12:09 PM
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I second your post nuke.. :yesway: on projects i've worked on, if there was a large amount of scrap steel/metal the sale of it was refunded to the client or part of the price. as far as the other material it was the contractors to contend with. there can be good returns in salavage but you've got to be set up for it. seen many good things trashed in order to remove them promptly.as it cost a good deal to save stuff IMHO.

January 5, 2009
4:04 PM
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Trust me I hate to leave money on the table and be the lowest bid by 30 or 40k, but I can't risk not getting a job. In todays economy and the way scrap prices are I can't lose a job. On the Change order thing i don't agree with it I think its playing dirty pool.

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