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 Post subject: Pricing
PostPosted: Wed Dec 06, 2006 10:26 pm 
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Joined: Wed Nov 29, 2006 2:15 pm
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Location: kansas
I was wondering if you guys change your prices for doing work for a city department or if everyone gets charged the same regardless of who they are. Just trying to get some input on this I'm losing several bids on this kind of work and wondering if it's common practice to lower prices for this.


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PostPosted: Wed Dec 06, 2006 11:46 pm 
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Actually, were I live, most local government agencies have what is called a "prevailing wage" limit, meaning that the bid and all workers for the subcontractor (or prime contractor) must be paid a minimum of the prevailing wage. The local governments look to the local unions for this wage amount. This is not to say that the bidder must be union; just that he/she must pay the same wages as a union shop PLUS their benefits. The idea is to keep everyone on an even playing field bidding wise. So typically, around here, commercial and government work get charged more. Also, many government agencies are required to take the lowest bid so it requires a knowledgable estimator/bidder to bid on government work. Plus, don't count on getting paid for awhile. Sometimes, they can take six months or more to make the final payment. Personally, I always thought they made you jump through too many hoops to make doing government work worthwhile.


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PostPosted: Thu Dec 07, 2006 12:28 am 
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That sounds kind of crazy, the whole not payin for 6 months is BS. All my jobs are due upon completion don't think I'll make any changes for that. It's in my contract and that's the way it will be.


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PostPosted: Thu Dec 07, 2006 8:08 am 
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Commercial work is cut throat, as it is. Throw in a government agency, and you better have deep pockets and a lot of minimum wage workers.

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PostPosted: Thu Dec 07, 2006 8:34 am 
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once again I say thanks for you guys on here replying to posts it's nice to converse with others in the same industry going through the same things or that have gone through them in the past.


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PostPosted: Thu Dec 07, 2006 11:05 am 
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The few governments contracts and jobs I did in the past required that I agree to THEIR TERMS. They write the contract, specify the work, and decide when and how much they pay. You either accept their terms or they get someone else who will. There is very little to negotiate. It's all spelled out prior to the dept. listing the work and putting it out for bid. It makes sense in a weird sorta way. The idea is to be FAIR to all bidders. They attempt to do that by spelling out all the terms prior to the bidding process.


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PostPosted: Thu Dec 07, 2006 11:17 am 
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I'm hoping this one is different it's a real small town and they are getting 3 bids and then going to council with it and I asked the person getting the estimate how the whole process works and she didn't say anything about it so I don't know we'll see. All part of the learning experience.


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PostPosted: Thu Dec 07, 2006 8:41 pm 
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I was thinkin about this. maybe the contractors and installers forum could include a chat room so we could just talk back and forth without posting all the time???? Just a thought i'm a newbie so don't know it all but could get to know each other better.


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 Post subject:
PostPosted: Thu Dec 07, 2006 8:52 pm 
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Location: Marin County
I have done very few jobs for goverment . And yes I have waited 3 months to get my final payment. I had to accept their contract but of course you can negotiate the terms as well. Next time the same company called me I have send the bid I have asked I will be paid the the day of complition the project.
They had the check erady for me :-)
I agree that you can charge them more but all the hassle of dealing with them is not allways worthwhile.

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 Post subject:
PostPosted: Thu Dec 07, 2006 9:04 pm 
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Location: Mid Atlantic
Maybe might do something w/ a small town council at MY price but way too many ways to get hurt w/ big city contracing.

Here in Phila many guys were hurt $$$$ awhile ago. Besides it is a union town, nuff said.

Also, shoddy workmanship is absolutely expected. Got called in by the tenant to do on the side repair rework off shift to fix their screw ups. Had to go in dressed in white as caterers with our tools in food containers. Phila. is such a labor joke.

Hard to believe how protected and organized hacks are here.

Plus extreamly slow pay. Cities and hacks are a cancer--run Forest run!


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 Post subject:
PostPosted: Tue Dec 12, 2006 2:51 pm 
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Location: Port Orchard, WA
I work in construction management for one of the biggest general contractors in the country. Government projects are *very* different, but we don't do small remodels like that.

I can't believe the town is so small that they don't have a standard contract to which you must agree. Yes, details can be negotiated, but it's always the gov't contract. Likewise, if you do work for my company, you sign our contract, not the other way around.

I'm only echoing what others here have stated, though. Prepare for lots of various red tape, even if it's on a small level. You likely won't have one person to please but a whole committee.


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 Post subject:
PostPosted: Tue Dec 12, 2006 5:49 pm 
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if I send you a proposal for what it is going to cost you, your going to sign my contract. or find someone else, less qualified.

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 Post subject:
PostPosted: Tue Dec 12, 2006 8:51 pm 
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Location: Port Orchard, WA
Floorguy wrote:
if I send you a proposal for what it is going to cost you, your going to sign my contract. or find someone else, less qualified.

On a small scale, perhaps.

When we're talking 350 high-end condos, we have a bit more leverage.

Most of our contracts for this type of work are with labor suppliers who would give us a bid and then farm it out to the 'independent' guys. Quality could vary, but since the supplier is on the hook to make it right, he makes sure to provide at least competent labor. We've had issues in the past with some quality but it doesn't take long for the supplier to realize we're not messing around or buying inferior work. Liquidated damages can be quite steep. <grin> And we've defaulted subs who can't get the job done right in the past.

I wish we could deal with the guys individually but we simply cannot when we're talking that kind of scale. Likewise, our overall exposure is so great that we are not willing to risk a flaky sub with his own contract. Please take no implication from this as I have no doubt you would keep your end of the bargin. But you know as well as I do that there are a lot of them out there.

Argh, incomplete thought, but the ferry is docking...


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 Post subject:
PostPosted: Tue Dec 12, 2006 11:17 pm 
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Oh I see, you have employment contracts.

When you go buy a car or truck, you have your contract to buy the vehicle, you hand the dealership? I want to see this!!! Can I video?

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 Post subject:
PostPosted: Tue Dec 12, 2006 11:54 pm 
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Location: Antioch, CA. 94509
Large scale commercial projects usually choose subcontractors (whether it's flooring, electrical, plumbing) that can "handle" the scope of the work. This means a large shop with a substantial labor pool and a large enough bank acct. to not need to get paid immediately. I've worked on condo projects and larger scale commercial jobs as a foreman for a larger flooring contractor many years ago. Typically, they release a certain amount of units that are ready for flooring. Not everything is ready at the same time. The flooring contractor will get five to ten units to get done in a timely fashion then have to wait until the next release is ready to go. On newer projects, where the units are for sale, the buyer may need to select the flooring and other upgrades from a "design center" who will contract with a labor only shop to install the selected flooring. This is more like tract residential than true commercial building. Then there is "custom" commercial, which I still do occassionally. Mostly like dentist offices and things of that nature, where there is a business owner and designer selecting the fixtures and flooring. My contract then is with the general contractor, who typically sets the terms as far as WHEN the work gets done. I set the terms on what it costs and payday always is delayed, sometimes by months. You need deep pockets to do commercial and government work because you may not paid for awhile. It's just the way it is.


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