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Construction Break-downs

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Bob/Ma:

In the REAL WORLD, break-downs are NOT always requested! Obviously, you request them, but it is not as common as you so stated. Moreover, if I, as a contractor, are asked to provide a price to construct, destruct, or remediate a project, I provide a lump sum price – I DO NOT break it down! And you want to know why most contractors will not break it down?....Because cheap and unethical Owners will take that break-down to another contractor and job-shop it to get a lower price. No way will I provide a break-down! I will provide unit costs in the event of change orders, but not a break-down of the lump sum. This is the real world of contracting. Moreover, it shouldn’t matter what line items I have in my budget to build, demolish, or remediate a project, e.g., I may have a trip for my family to visit Maui for two weeks or a new Case front loader, in the budget. If I am a qualified bidder and my price is the lowest, then who cares what I spend on what or where to do a project; I am cheaper than the other contractors. Owners are going to look at the bottom line. PERIOD!

For what it is worth.....

,

In the real world a break down is always requested. This is due for comparison purposes. Otherwise the customer does not know what they are getting other than potentially scammed.

I have been doing work that includes insurance companies and they “ALWAYS” want it broken down before any agreement is offered. Are you sure you do work for the insurance industry? My experience is they NEVER award project without knowing what is included. Too many contractors have added in stuff later on in the process (PLEASE don’t respond with “You don’t do that and they think you are the best contractor/consultant out there).

On the other hand if you are really close and in with the adjuster (or unethical) that may be another issue. I have heard of those situations.

Bob/Ma.

From: iequality [mailto:iequality ] On Behalf Of gary rosen

Sent: Thursday, February 22, 2007 1:11 PM

To: iequality

Subject: Re: Here we go again [was: Insurance cap...]

Jim,

Yes Jim every job teaches us something and we are continually improving our efficiency. We just bought a GRACO MarkIV that sprays drywall mud like paint to help with the finishing.

Back to the issue of quotes ... the detailed quotes cost money and they allow competitors that can't figure out the job to more easily compete with you if the owner gives out your bid to others.

Whenever possible we give very short quotes with no useful information in it for competitors. If the contractor likes out price we often have to break down the quote for the insurance company... but that is usually after contractor award.

Rosen

www.Mold-Books.com <http://www.Mold-Books.com>

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