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Unsolvable Riddle

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  • #16
    This reminds me of long ago when a new Developer (originally from PA) started building in the Northern VA area. It was at the time of the downturn in building and everybody was scrambling for work.

    EVERY single one of their subcontractor applicants got the same line: "we really want YOU as our [Geotech/Land Developer/Concrete Foundation Builder/Drywaller/etc.] BUT you just need to get your price a little lower." Then when they felt they'd driven the price as low as they could they made a decision. And did the savings go to the new homeowners? Heck no, they went in the Developer's pocket!

    We sure as blazes weren't making any money from them and Scrooge kept grumbling. I was told to keep my time on their sites to a minimum and when the contract lapsed it was not renewed. I heard the same happened with most of their subcontractors.

    When the Developer tried this stunt again they failed miserably as the housing market had rebounded. They finally had to start paying decent wages and, lo and behold, their home prices went up substantially.

    So make sure your bid allows your company to show a profit and the end and not a wash or () a loss!

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    • #17
      I got to talk to the builder today, for clarification



      It didn't go super well. Three times he 'clarified': There is two projects on Street A and three projects on Street B, so we need quotes for all 6. The two on Street A are backed by the same person, and they will not award both projects to one company for any trade (). The three projects on Street B are all backed by the same person. Actually there is two people backing them, they are each backing one, but they will be awarding all three projects together. So if you could send pricing for the two projects on Street A as doing only one project, but you can send the three for Street B as a group pricing scheme, because we can get them awarded to one company, the two backers are each backing one project but will be awarding together.

      So we have 4 quotes already, you can resend those, with pricing as discussed and then just send us the new two.

      At one point I mentioned that two projects plus three projects equals only 5 projects, and at least we agreed on that, but I still kept getting told about the 2, and the other 3, so all 6. Also the two backers who are each backing one of the three projects on street B. I don't feel especially clear.

      So I sent 3 quotes today. One for each of the projects on Street A, as independent projects, and one for the three on Street B, noting that pricing is valid for the whole project only, but breaking down the price for each building so that the backer(s) of however many people could apportion costs correctly. I haven't heard back yet, but I'm sure whatever the reply is won't make me frustrated in the least.

      I don't expect builders to know every detail of the project during the paper stage, but how many buildings in total they are building is a pretty massive priority on the list.
      Pain and suffering are inevitable...misery is optional.

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      • #18
        I quote projects per plans and specs with one lump sum price for the entire project. Occasionally I will have a contractor call me and tell me that they need me to provide them with an itemized quote and I am happy to do it for them.

        Inevitably they call back saying there must be some mistake because when they total the itemized list it is anywhere from 50% to 100% more than the lump sum total I gave them. That's when I get to explain that the lump sum is discounted based on the total package and if they want to pick and choose items to include they should use the itemized list as a worst case. If they get the project and do not want all the material/engineering then we will be happy to revisit it and give them a buyout price once they have decided exactly what they want to include and what they want to exclude.
        You'll find a slight squeeze on the hooter an excellent safety precaution, Miss Scrumptious.

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        • #19
          Is the unsolvable Riddle's name Tom?
          Any fool can piss on the floor. It takes a talented SC to shit on the ceiling.

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