Help pricing work.
- Thread starter Wilfage
- Start date
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Lard
Established Member
Aye, you’re right…..it’s only when you realise that for some of the smaller subcontractors who have to ‘fight’ to survive (ie are continually pressurised to reduce their sums) that, potentially, may only be making smaller profit, could have all of it wiped out by those contractors (all?) who still make use of that unscrupulous practise…..I was part of that back in the day (not my rules Btw) but commonplace.You have not mentioned the 2.5% main contractors discount that is taken not matter what the submission.
I used to test the student’s understanding by asking them what they would do (I’d put it on quite thickly)….a fair number would get quite heated when realising how ‘unfair’ this all sounded. They would say they’d simply add 2.5% (1/39th) to their tenders. I would then point out that this would, perhaps, make them less competitive and so potentially lose the work. I’d then get them to realise that any job lost could have the knock-on effect of increasing the overhead % within the next tender, further increasing costs and so, again, make them even less competitive…….it’s could then be a spiralling circle.
It’s a horrible situation and one that some of my friends (medium sized subbies) face on a daily basis.
It really a fine balancing act that I’m glad I’m completely out of now.
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And then the inevitable question "What can you do for us?" meaning how much more can you reduce your cost by, it was holding sub-contractors to ransom almost "If you want the contract you will have come down even more" 
usually only applied to the main sub-contractors those with the largest margins. And then of course the manipulation of prelims.
usually only applied to the main sub-contractors those with the largest margins. And then of course the manipulation of prelims.Lard
Established Member
Eh? Not sure I follow you….I did edit somewhere (I often do) but I don’t control where it’s placed, I simply edited it (can’t even remember what I edited).
Your post about 2.5% discount I referenced in my subsequent comment. I didn’t realise that we were being forensically audited either.
Sorry if I’ve inadvertently offended you but I’m not after brownie points, just trying to help.
I actually logged in now to apologise to the OP as I (especially) thought I may have taken the thread too far away from his original query.
ps….I’ve just edited this to add the word ‘inadvertently’
I think people either price work to deliver a good job and others price work to get the job.
