Getting bids from contractors

[Short-bus]

I had a tree that got blown over from some high winds we had recently. Fortunately it fell across an adjacent easement, pushing a barbed wire fence down that doesn't really matter, but no damage to anything else. It's accessible, and not really a problem. So we're getting quotes from contractors to come out, cut it up, and remove it. Can I handle it, maybe, but it's a big tree, and the way it's sitting, there's a possibility that my dumbass will cut something and the trunk will roll onto me, not enough to kill me, but enough to really alter my future. Anyway, we're getting several free quotes, and we're going for the cheapest because money is tight with teen daughters and looming college tuition bills this fall. Why do I feel like a dick for having to tell these guys that they didn't get the job? Is it because I spent a little bit of time talking to them, kinda getting to know them a little bit? I don't want to just ignore them, they spent the time to come all the way up here to write up a bid. Any advice for a better way to approach getting bids in the future to where I don't feel like such a jerk having to tell them they didn't get the job?

Branden

 

[Trigger Monkey]

Give it to them straight, when I'm in this situation I basically tell them the following.

"I appreciate your time to quote this however your quote was a too high for our budget"

I don't say we're going with another guy, I don't give them any numbers just the basics and one of two things is generally going to happen.

1. They say thank you, we're sorry we couldn't do business and that's that.

2. It opens the door for a negotiation to try to lower the price some.

Sometimes the response can provide some insight too but again it's just generalities. Response #1 could mean that they have a pretty full schedule anyway and not getting this project won't really hurt them one way or another. Response #2 could mean that they're hungry, their schedule isn't that full, and they need work meaning they could jump on the project quicker. It doesn't always break that way though but just be honest with them, don't beat around the bush and it will be fine.

 

[EddieNFL]

Anyone tell you the price was good for today only?

 

[Gommer]

If it's a utility easement you might try calling the utility company that utilizes it most, generally the power company, often they'll come remove things like that at no cost to you.

 

[Short-bus]

Anyone tell you the price was good for today only?

That's happened in the past, but not on this project. That sales tactic always pisses me off.

Branden

 

[Short-bus]

If it's a utility easement you might try calling the utility company that utilizes it most, generally the power company, often they'll come remove things like that at no cost to you.

I wish, it's a access easement for the farmer that owns the 80acre lot behind the house.

Branden

 

[AuNEagle]

I am a mechanical/process engineer and have done a lot of construction project management for my company (designing and erecting rock quarry plants). In that capacity I generally have to deal with concrete, electrical, plumbing and steel erection contractors. I understand that projects like yours is not as involved or formal in comparison to our typical projects, but this is the process I use.

For our jobs, we usually create a specification and drawing package that details all the work to be done (in as much detail as reasonably possible). These documents will be sent along with invitations to bid to all of the contractors we are interested in for this project. Then I will host a bidders' meeting at the site for the new quarry plant to meet with all the interested parties, give them a chance to look over the job site and answer any questions they may have regarding the spec/drawings. Each bidder that is interested in the job and can fit the project into their schedule then submits a bid. For us, that bid is their one and only chance at that particular job. We try to maintain a level playing field and do not enter into negotiations to try to lower individual bids after the fact. (If something changes that would require a change order, that information would be send to all bidders and they would all be allowed to revise their bid.) We are not obligated (per our spec) to select the lowest bidder but often do as we have already pre-screened the list of bidders.

Like you, I do find it a bit awkward to have to notify bidders that they were not the winning bid. This aspect of the process is also exacerbated by the fact that the list of bidders is often same for any projects we do in the areas we operate. There are only so many companies that do some of this work. So I have often worked with most if not all of these bidders on other projects and consider some of them friends. But I just try to keep it professional, I always call them on the phone and sincerely thank them for taking the time to bid the project. During those calls, I may mention other projects we have in the works, even if the field work may be a few years out. I never discuss specific bids from other companies, but I will try to give them some general feedback if asked. Bottom line, if you treat everyone fairly, I've found that they respect the process and I've had numerous contractors tell me how much they like working on our projects.

 

[SouthFLShootin]

I am a contractor. Not getting jobs you bid is just part of the business. Nothing personal about it.

The duty of time management is my responsibility, not a potential customer's. If I were called, I'd likely also have some questions for you too...

-Could you text me a picture of the job?
- What is your budget?
- Have you or are you going to have other companies bid this job?
- how quickly do you need the job done?

At that point, I'd make decision if the job was something i was capable of, if the money will be worth my time, if there's a likely chance of me getting the job and if I can get it into the schedule in a timely enough fashion. All over the phone before even coming out.

But don't feel bad just because someone came out to bid a job and didn't manage their time properly.

 

[EddieNFL]

I never answer questions about budget.

 

[lonegunman762x51]

They don't get every bid, they know how it works. If you feel like you need a better deal, ask for the cash price.

 

[chevy_man]

If we get more than 40% of our bids we're too cheap. If we get less than 20% of our bids we're too expensive.


They don't care. Just let them know so they can confirm they don't need to put you on the schedule.

If they do care and get worked up, just hang up and be happy you didn't end up doing business with an ass.

 

[Short-bus]

Lot of great info, thank you very much guys. I think I have a better perspective to view it from, and in the future won't feel bad about the process.

Branden

 

[04JRB]

I am a mechanical and plumbing estimator. I bid on multimillion dollar projects. I dont take it personally when I call for feedback and I'm told I was not low, or they are going a different direction. Its life as a contractor, and you cant win them all. If you did, you wouldn't be a good estimator, lol.

Don't sweat it, Short-bus. We as contractors are used to it.

I do like to ask questions about the spread on the bid prices though. Not because I'm looking to undercut someone, but to find out where I came in with my price compared to others and to help me be better on the next opportunity. Always looking to improve, and the market shifts and I need to stay in touch with that.

 

[300zx_tt]

We’re all adults, be straight up. When I follow up with customers and they’re honest and up front I appreciate it… don’t drag it out and give BS excuses… I can usually tell when I’m not going to get a job within the first 5-10 minutes of meeting clients.

I get about 60% of the jobs I bid for new customers. I get around 85% of the bids I do for referrals/ word of mouth customers…

I’ve tried raising pricing, still get the majority of jobs I bid…. I have customers now that are agreeing to an 18 month wait time on bathroom rehab that I’ll make $16k on and it should take me less than 2 weeks