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The Concept of “Competitive Bidding.”
This article is inspired by the book: The Complete Business Manual for Concrete Paver Contractors written by Charles Vander Kool. Available thru Interlocking Concrete Pavement Institute (ICPI).
Several hundred years ago, the architects of the world may have gathered in a back room and conspired against all the contractors of history. The conspiracy was “Competitive Bidding.”
You and I have heard these words used for years; words that naturally make us think that we are creating or involved in some sort of athletic competition. Imagine that you will be watching these contractors get into a wrestling ring and strip down to their waists. Then they lie, cheat, bite, pinch and gouge at the bid and each other until one of them all bloodied and beat up is left standing: This one is the low bidder. He wins the competition and as a reward, goes out and works hard and loses money for the right to do your job.
If you fall for the concept that bidding and estimating are the same thing — that is one company competing against another — then I will now explain what an estimate is and how a bid is completed and for what purpose.
The purpose of an estimate is to take a set of plans and specifications and arriving at what a job costs in the big four: material, labor, equipment and subcontractors. Bidding is taking that estimate and adding overhead, profit and contingencies and turning in a price - a bid - for what you want to be paid for the job.
You can lower your bid price on a job by taking less profit or by reducing your company overhead. However, you can never, nor should you ever, lower your estimated costs. Costs are costs. Therefore, estimating is the science of arriving, first and foremost, at what a job costs. From those costs, a bid is developed.
To help you develop a price for your paver installation use our Down Load Our Simple Guide to help you and your Hardscape/Landscape professional create an attractive and comfortable landscape you will enjoy every day.
If all you are looking for is the lowest bid to do your hardscape installation then I offer you this: Go to our Faq sheet and follow:
9 Basic Steps to a Paver InstallationI would like to end with this Quote from - Ernest F. Cook: “If You Can Only Cover Costs, Capitalism is Irrelevant”
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If you want to know more, don’t hesitate to contact us at R. Lacy Interlocking Pavers or give us a call at 559-442-1999.