Tender pricing

[john87]

Just remember that the people that want the work doing have a few big advantages over you..

 

1, They will be skilled at screwing people down into the ground as they have nothing to lose and do it every day. It is merely a game and a laugh to them.

2, It is not their money so it is just like monopoly to them, they will not give a crap.

3, There is a possibility that they do not want the cheapest price anyway, as their department get a percentage as commission.

4, If it is a public body, always remember that they pay out amounts for jobs that would make you laugh, incredible amounts..

 

Just put in a price that you are well and truly happy with.

 

john..

[drinksloe]

Not entirely relevant to this thread but follows on from the last post.

 

But i mind almost 30yrs ago when i used to do pipe line fencing, generally u'd start at 1 end and fence ur way to other but most pipleines would make u jump to any rivers or major roads where they were directionally drilling the pipe under the obstice and fence a big work site for them.

 

1 day the QS bloke was telling us they get prices in for the boring very early and start them way way before the rest of pipeline and generally go with the cheapest quote fully expecting them not to be able to do the job, so if they fail they have plenty of time to get the next contractor in.

if they do get job done there quids in, if not its no big drama thou either.

 

I think it was 1 of the later crossings they said there was 3 sets off drills stuck below the river ( not sure if all the same contractors or 3 different companies)

 

Like others have said u just need to stick to ur guns, if ur busy enough ur not doing much wrong

 

[Hodge]

Where do these company's come up with the pricing structure? I've looked at work before and they are in cuckoo land.....yet there are company's that will do the work for peanuts??

[Mick Dempsey]

It’s a different world, complex costings, calculations including late payments, fuel, loan payments on machinery.

 

I see people doing these sort of jobs and I feel a twinge of envy.

But I don’t have the drive or energy to even think about throwing my hat in the ring.

 

A man’s gotta know his limitations.

[Hodge]

It’s a different world, complex costings, calculations including late payments, fuel, loan payments on machinery.
 
I see people doing these sort of jobs and I feel a twinge of envy.
But I don’t have the drive or energy to even think about throwing my hat in the ring.
 
A man’s gotta know his limitations.

I looked at one a while back and when I read the payment terms I was shocked, it was along the lines of they pay you 60% of your invoice 90 days from invoice date and then the next 40% after a further 60 days but only if they are happy with your work....needless to say I explained in plain terms what I thought of their payment terms🤣🤣

[aspenarb]

16 hours ago, Hodge said:

Where do these company's come up with the pricing structure? I've looked at work before and they are in cuckoo land.....yet there are company's that will do the work for peanuts??

 

Depends on the size of the tender and the company, a lot of companies look at a tender as a way meeting all or most their overheads. Other work is then where profit is made.

 

Bob

[dumper]

I worked for a large earthmover when tenders came in we used to look for the mistakes items where they had got the numbers wrong  ie too much or too little in the bill of quantities then price accordingly items they had over estimated we priced low and underestimations high and sometimes very high but due too the under estimate on quantity made little difference to the final tender price but massive difference too the final account. On an airport job we priced under the expected cost knowing full well they had made a mistake and we could take them to the cleaners on final account and did 

[maybelateron]

51 minutes ago, aspenarb said:

Depends on the size of the tender and the company, a lot of companies look at a tender as a way meeting all or most their overheads. Other work is then where profit is made.

Interesting thought that. As a small firm that never occurred to me, but I have heard it said many times that the biggest contractor in our area take exactly that approach, and all the emergency work makes up for lower priced bread and butter work.

[djbobbins]

I worked for a large earthmover when tenders came in we used to look for the mistakes items where they had got the numbers wrong  ie too much or too little in the bill of quantities then price accordingly items they had over estimated we priced low and underestimations high and sometimes very high but due too the under estimate on quantity made little difference to the final tender price but massive difference too the final account. On an airport job we priced under the expected cost knowing full well they had made a mistake and we could take them to the cleaners on final account and did 

Completely different industry but when I worked in networks services about 20 years ago, the company relied on buyers having incorrectly specified the job. We would bid at cost or very low levels of margin for the core spec, with much higher rates on variation works (which as part of the tender conditions, we had the right to deliver).

[Thesnarlingbadger]

Well I have put together my quote, now just have to sort out TM and put together RAMS for every site. The quote came in at just over double and if the LA are not going to agree with the road closures or TM I am hoping for then I’ll wipe my hands with it I have MEPS and chains involved and the stress of it all is not worth it if they are not going to accept my way of doing this safely.
As mentioned before we are busy enough with work so I can always accept not winning a bid. But I guess it’s always good to try out and see what comes back.
Thanks for all your help. I have always priced for tenders and been close to the mark but this one threw me but every other company I have spoke to said it was way off the mark.
Quote will be in on Wednesday at just below £200k let’s just see how that goes.

Thanks again for your input and the make advice I got is don’t race to the bottom. [emoji106]