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excessive underbidding
January 5, 2009
6:46 AM
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January 12, 2006
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As Chaplin posted if the contractor is self contained with less outside expense he may be able to take jobs for less. I have acreage tha I can take concrete and brick to so I can save a client money on the disposal end.
On the other hand recently I have lost a few bids to what I consider an unprofitable bid. I have also seen clients who have been shellshocked by the prices and decided to not do the demo. In this economic climate I think we are going to see more of this before things snap back into a predictable line.

January 5, 2009
6:34 AM
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It's going to get worse before it gets better. I agree with the change order side of things, people are going to tighten up their scope of work and start using change orders to make up some of the loss.

January 3, 2009
9:26 AM
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We tore down a 60 unit trailer park for 28k and underbid everyone by almost half. We did our own abatement and the salvaged alum and frames paid for the job twice and the 28k was icing on the cake. We recycled the concrete and milled down the asphalt and backfilled the entire job at no cost to haul off. We were paid $95 per tandem axle load for the asphalt as long as its milled.

January 3, 2009
9:23 AM
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Did the school have a lot of salvagable materials? Antique Brick? Company might own its own landfill, inert landfill, concrete crushers. I've torn down 2 schools and a 40,000 Sq/Ft job isn't a huge job. If its a steel structure and has lots of salvagable material the salvage will probably pay for the job if you dn't have to rent any equipment. I'm tearing down the Old Satcher Ford building in SC right now and I underbid everyone by 40k as the old sayings goes I'm trying to make a living not a killing.

January 2, 2009
9:09 AM
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I've talked to a few folks and I think that the minds set is that there will be alot of change orders and they will make their money on the change orders once they get their foot in da door.
also some folks will/can take on a loser to keep working/ get foot in door. but with the numbers you posted you look at it and say what the heck is going on in ohio.. LOL.. i lived in columbus for a few years was a hard town to work in as a H.E.O. the union hall's books were thick, local construction company's all got toghter to pay lower scales. public schools construction was taken off Davis Bacon Act scale. heck at 1 point i was traveling 3+ hrs to work I.U.O.E. market recovery wage's which was little more than apprentice scale

January 1, 2009
4:19 PM
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FIRST OF ALL I DONT MIND GETTING UNDERBID ON A JOB. BUT LATELY SOME OF THESE ARE SICKENING. TWO DAYS AGO A SCHOOL IN NORTHERN OHIO WAS UP FOR BID. IT WAS A THREE STORY 40000 PLUS SQUARE FOOT BUILDING. THE ESTIMATE WAS 95,000. WHICH I THINK WAS 40 TO 50K TOO LOW FOR THIS JOB. IT HAD ALL KINDS OF LITTLE AGGREVATING THINGS TO DO AS WELL WITH THE JOB. SOMEONE BID IT FOR 32K. LAST SUMMER A BID AROUND CINCINATTI FOR SEVERAL LARGE BUILDINGS AND ALL KINDS OF SMALL WORK. A 150K JOB WAS BID FOR 27K. HOW IN THE WORLD CAN THESE PEOPLE DO THIS? JUST SEEMS LIKE A SLAP IN THE FACE FOR ME AND THE OTHER BIDDERS!:confused::confused:

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