Construction Tender I have just won a Job & ....?

Question

I have just won a sealed tender to carry out a large extension , however the client has listed all the prices that we submitted against the other two building contractors prices . All the prices are different and I won the contract by a £12 thousand lower bid which I am happy with.

This should be good, but the client has listed out my highest 5 prices and asked me to review them as they are higher than the other builders prices yet overall i am cheaper on all the other 55 items what should i do tell them the price is the price I am cheaper / look at the prices as work of this size is hard to find ? / or is this a sign that they will penny pinch ?

Answer 1

Standard tactic to grind down the supplier ... however if they signed the Contract this is unacceptable = suggest you reply stating that if they now wish to Cancel the Contract you are happy to discuss Penalty Charges ...

You are right to be concerned about 'penny pinching' = it already sounds like this customer could be trouble - make sure the Contract lays out Payment Schedule and KEEP THEM TO IT. If payments fail to be made on time stop work immediately.

Especially confirm IN WRITING every change they request and state the additional cost (they will try to expand the work for no extra charge).

[Builder friend quoted to re-tile a bathroom - he made the mistake of quoting high on materials and low on Labour - customer "accepted" the quote and then presented him with their own tiles and asked him to do it for the Labour costs alone ! He made the mistake of agreeing - after the first days work he was about half way through when they said they couldn't afford to pay him at all ... he found out later they were both on Benefits (so no point in taking them to court) and had pulled the same trick on other builders .. ]

Answer 2

Tell them that your overall price is a complete price for the package of works, and that you were able to offer significant discounts on the other areas of your quotation. If you are correctly priced on these 5 elements I would tell them that there is nothing you can do.. It sounds like they are just trying to test you to see if you will knock off some more cash.. Good luck with it!!

Answer 3

the first thing that i have to say is that the "Pale Rider" person is an idiot and you should ignore him. Anyway, there are a lot of places that will teach you how to dive, look up "diving" or "deep sea diving" in your local yellow pages phone book. I'm not entirely sure if you can make a living from doing that, but i think that if thats what you really want to do then go for it! America, the land of oppurtunity.

Answer 4

You quoted a price and they accepted! don't back down if you can possibly afford not to! You can say you will cut corners where you can on products but as for your services you have a very high standard and could not jeopardise your ethics too much! They will be troublesome if they are already at it!

Answer 5

You quoted a fair price and that is what you won the tender on(which they accepted). Don't drop your price-they sound like penny pinchers.

Answer 6

i think they are just looking for the cheapest price.

I would explain that these are your prices and you are giving them the best deal you possibly can. you are in business to make a profit also.

hope that helps

Answer 7

turn up on time everyday. keep a diary of every little thing that goes right/wrong. record delays and extend your programme to suit. never let the bastards grind you down or youll get shafted. your client sounds like some whos getting outside/family advice and knowhow. stick to your guns then sue THEM if it all goes **** up. good luck!

Answer 8

I think you can get some advice on such things
from your local builders association.
By the way Congats.

Answer 9

sure