Tenders/Quotes

[TRADITIONAL LOGGERS]

Is there a standard timescale for councils on Tenders/Quotes and do the offices ALWAYS take the lowest price?

 

(I mean between the closing dates and informing people) That's assuming these times with costs it does contact people back.

 

[lawranced1]

no, they don't always go for the lowest price because they are also looking for a good service, in general pay peanuts get monkey's.

[WorcsWuss]

Usually the lowest 2 are considered.... depends if the cheapest is waaaayyyy cheaper really.

Ultimately though, LA's go with the cheapest except under VERY extenuating circumstances.

Timscales wise, tenders are generally opened on the return date but it usually takes up to 2 weeks for them to select a contractor.

Unsuccessful contractors to crappy councils may not hear anything until a letter arrives listing the tendered prices which could take 6 weeks.

[Steve Bullman]

no, they don't always go for the lowest price because they are also looking for a good service, in general pay peanuts get monkey's.

 

That may once have been the case, but with the current economic crisis and the reductions in budgets i'll think you'll find even the councils are sacrificing their standards and going for the lowest prices

[eddiegts]

That may once have been the case, but with the current economic crisis and the reductions in budgets i'll think you'll find even the councils are sacrificing their standards and going for the lowest prices

 

Yes I agree with this, just had an email from my LA saying thank you for your quote but unfortunately you have been unsuccessful another company was cheeper than you and we are obliged to use the cheapest. Until about a couple of months ago I won all the work with them ( I have not changed my prices and was quoting against other company's) I know that I am not the cheapest but have always offered a good services and they have always been very happy with my work and built up a good relationship with them so I guess they are keeping a tight grip on there cash and not so worried about the service they get!

[WorcsWuss]

Yes I agree with this, just had an email from my LA saying thank you for your quote but unfortunately you have been unsuccessful another company was cheeper than you and we are obliged to use the cheapest. Until about a couple of months ago I won all the work with them ( I have not changed my prices and was quoting against other company's) I know that I am not the cheapest but have always offered a good services and they have always been very happy with my work and built up a good relationship with them so I guess they are keeping a tight grip on there cash and not so worried about the service they get!

 

You will probably find that you actually were the cheapest, LA's have been going with the lowest for a long time... What's happened now though is that someone has come in buying the work... and anyone with half an ounce of business acumen and dignity can't compete with someone who doesn't know his costs... Do you get a breakdown of tender returns so you can see how you compare to the other tenderers? I always find those FASCINATING... trying to guess who it is who is going to be going bust next...

 

What you will find though is that the savings they make using a 'cheaper' contractor are usually lost in not only putting it right, but endless buck passing to ensure that if anything does hit rotating blades, it can be pinned on Central Government policy and not anyone from the council.

It's a tragic system...

[richy_B]

My experience is that tenders (arb, building and GM) have weightings covering things like sustainability, staff training and development, H&S, quality control but of course the biggest weighted item is price (65% is the lowest I've seen). They do dress it up as 'value for money' and 'best value over the life of the contract' but it generally comes down to the cheapest quote. That said the few percent gained from the lesser categories could be what wins it if you tie or come close on price.

 

As has been mentioned though some companies, even well established & experienced ones can lose the run of themselves and come in ridiculously low just to win it. I am aware of a large LA tree contract that was won and then the term contractors had to novate after 12 months as it was pretty much going to bankrupt them. Even the most efficient teams never running into an problems or delays couldn't do it and cover costs. Was never going to happen, I think the bosses were blinded by the £4m over 4 years.

 

My overwhelming experience of LA tenders is they tend to be fairly exclusive of small operators regardless of how good you are. I think this is a real shame as the quality of the work and the reliability of the service often surpass larger companies.

[TRADITIONAL LOGGERS]

Thanks for the advice. We had been waiting for weeks on a certain contract and been told still deciding on who when called them last week. I noticed some websites did mention the lowest price would be the price chosen.

 

These links might be useful to those looking elsewhere for work.

 

https://www.sell2wales.co.uk/

 

Public Contracts Scotland - Home

 

Some do give the details of who has won.

[Big Bolt]

i do believe that norfolk c c publish all payments for contracts and to whom if you want to look at there list and find out what the other guy is charging you can

[eddiegts]

You will probably find that you actually were the cheapest, LA's have been going with the lowest for a long time... What's happened now though is that someone has come in buying the work... and anyone with half an ounce of business acumen and dignity can't compete with someone who doesn't know his costs... Do you get a breakdown of tender returns so you can see how you compare to the other tenderers? I always find those FASCINATING... trying to guess who it is who is going to be going bust next...

 

What you will find though is that the savings they make using a 'cheaper' contractor are usually lost in not only putting it right, but endless buck passing to ensure that if anything does hit rotating blades, it can be pinned on Central Government policy and not anyone from the council.

It's a tragic system...

 

I have asked before and I have seen the other guys prices that's how I know that I am not the cheapest. My rate is my rate it can't change unless my costs go down and I really can't see that happening ( with fuel etc... Always going up)

 

I strongly agree with your last statement about short term saving and it costing more money in the long run to sort out the cheap option

Edited November 23, 2011 by eddiegts