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My Supplier Misquoted A Project

 
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Old 12-19-2010, 02:02 PM   #1
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My Supplier Misquoted A Project


So i'm going over my fixture schedule and cross referencing the quoted fixtures. Holy ****, i'm seeing serious problems. The entire quote is way wrong.

I started the project, just a few hours of demo, no big deal. They gave me a contract to sign, when i started the demo, but I wanted to look it over and I found some issues with it, so I told them to correct the contract.

I guess Monday I go to my supplier and the contractor and tell them what I found. But no way i'm eating this, i'm glad I didn't sign that contract.

Is there anything I should know, that could help me resolve this. I do not want to walk away from a job, but I can't afford to take a loss, in this economy, but i'm also a man of his word.
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Old 12-19-2010, 04:14 PM   #2
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Re: My Supplier Misquoted A Project


Question is, is your supplier a man of his word?

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Old 12-19-2010, 04:27 PM   #3
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Re: My Supplier Misquoted A Project


I'd be surprised if the supplier stands by his quote. That's the first thing to find out. I would be suggesting to the supplier that he needs to stand by his quote, even if he has to sell the product to you at his cost.

If he says no, I would be looking for a new supplier, get a real quote, go to the the GC and explain what has happened and go from there. I agree, I wouldn't be eating it on account of my supplier.

But I would make it clear to the supplier, either you stand by your quote or we're done doing business with you.
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Old 12-19-2010, 04:27 PM   #4
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Re: My Supplier Misquoted A Project


Man of there word or not, if you have it in writing, I'd hold them to it.

That will teach them to mess up again.
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Old 12-19-2010, 04:28 PM   #5
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Re: My Supplier Misquoted A Project


Did you bid this to a GC who is now on the hook for your (erroneous) bid?
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Old 12-19-2010, 04:29 PM   #6
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Re: My Supplier Misquoted A Project


Just re-read your post. These are electrical fixtures, yes? If so, I'm pretty sure the supplier has enough room in his markup to make it right.
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Old 12-19-2010, 04:53 PM   #7
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Re: My Supplier Misquoted A Project


The reason for a written quote is so there is a written agreement between you and the supplier for him to provide you with specific items for a specific price. Plain and simple.

Would it have been a good thing for you to read it carefully and alert him that there seems to be an error? Definitely

But it is not required for you to ensure his quote is correct. That is his responsibility. Your responsibility is to pay the bill within the terms of the account.

Now if you feel the GC and the client are of the understanding type and you could get this straightened out without staining your relationships on that end, go for it. I could see myself trying to make it right for some of my regular guys. After all we are all on the same team. I need them just as much as they need me. But not at the expense of a good GC.
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Old 12-19-2010, 08:12 PM   #8
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Re: My Supplier Misquoted A Project


Quote:
Originally Posted by thom View Post
Did you bid this to a GC who is now on the hook for your (erroneous) bid?
Yes it's a bid to a GC. I'm not sure, if my bid was used to land the project, good possibilty.
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Old 12-19-2010, 08:21 PM   #9
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Re: My Supplier Misquoted A Project


I have the written quote, for this project. One reason I didn't catch it, they ussually cross parts with the brands they carry, which is fine. As long as they are basically the samething. Right now I have quote for $6,000 in lighting fixtures, I'm guessing they might be off by $2-3,000.

I'll find out first thing in the morning. Thanks.
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Old 12-19-2010, 09:51 PM   #10
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Re: My Supplier Misquoted A Project


Are they off on quantities or specified materials? Did they do the material and/or quantity takeoff or did you?

I do not do takeoffs on quantities, just materials, but either way, my quote is for the materials quoted, not the materials on the job if you understand the distinction.
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Old 12-19-2010, 10:26 PM   #11
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Re: My Supplier Misquoted A Project


I only trust myself to do a takeoff when it will affect me. My supplier's invoices (and quotes) have a line at the bottom that "they are not responsible for the accuracy of takeoffs and that even if they do a take off it is not a guarantee that the material supplied will be sufficient for the project." (not exact quote) I read it once, but since I do my own take offs it's irrelevant to me.
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Old 12-19-2010, 10:34 PM   #12
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Re: My Supplier Misquoted A Project


I saw this post this morning and left it alone.
I'll play the A$$ Hole, since I evidently have priors.

How did your supplier get what items to quote?
Every supplier I have dealt with has an error & omissions clause.

Now you received a quote in the 6k range. You as an experienced EC, had to have some idea of what the quote should have been. Miss by a few hundred bucks ok. Supplier off by 2-3k & you didn't notice? My EC can peg a quote within 1% or less.

Now your a stand up guy. Probably conduct your business in a no BS fashion. As the GC I would have liked to know about the situation Friday night. If you are a regular with this supplier maybe they can help you out.

If not, it's on you & how you want to handle it.

Some friends of mine just bid a high end residential job.
Guess what, Material & Performance bonds are required. 1.5m job, just limited the potential bids to maybe 2.

Sincerely, I wish you the best & hope all this works out for you.
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Old 12-19-2010, 10:42 PM   #13
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Re: My Supplier Misquoted A Project


I have had instances where I quoted a specific material at a (contractor supplied) quantity, and my stock was not sufficient to fill the order, and I had to pay a significantly higher price to supply the order. I ate the increase on that one. I have also had the exact same situation where the contractor needed more material than on his purchase order, and he ate that increase when I had to buy more.


The bottom line is that without a signed contract or purchase order, the supplier does not have to honor anything. A quote does not assign liability until it is executed.
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Old 12-19-2010, 11:00 PM   #14
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Re: My Supplier Misquoted A Project


Quote:
Originally Posted by hbelectric View Post
So i'm going over my fixture schedule and cross referencing the quoted fixtures. Holy ****, i'm seeing serious problems. The entire quote is way wrong.

I started the project, just a few hours of demo, no big deal. They gave me a contract to sign, when i started the demo, but I wanted to look it over and I found some issues with it, so I told them to correct the contract.

I guess Monday I go to my supplier and the contractor and tell them what I found. But no way i'm eating this, i'm glad I didn't sign that contract.

Is there anything I should know, that could help me resolve this. I do not want to walk away from a job, but I can't afford to take a loss, in this economy, but i'm also a man of his word.

You take the plans to the supplier.
Supplier does take off and hands you a quote for substitutes.
You bid job according to spec's but now want to substitute because it is half the price.
GC says no, I want spec'd items.
You never signed, he never signed,
your bid is still yours.
Renegotiate.
They GC probably knew you were off by 3k,
he's thinking, Lucky bux.
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Old 12-20-2010, 01:14 AM   #15
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Re: My Supplier Misquoted A Project


Quote:
Originally Posted by griz View Post
I saw this post this morning and left it alone.
I'll play the A$$ Hole, since I evidently have priors.

How did your supplier get what items to quote?
Every supplier I have dealt with has an error & omissions clause.

Now you received a quote in the 6k range. You as an experienced EC, had to have some idea of what the quote should have been. Miss by a few hundred bucks ok. Supplier off by 2-3k & you didn't notice? My EC can peg a quote within 1% or less.

Now your a stand up guy. Probably conduct your business in a no BS fashion. As the GC I would have liked to know about the situation Friday night. If you are a regular with this supplier maybe they can help you out.

If not, it's on you & how you want to handle it.

Some friends of mine just bid a high end residential job.
Guess what, Material & Performance bonds are required. 1.5m job, just limited the potential bids to maybe 2.

Sincerely, I wish you the best & hope all this works out for you.
Too much specialty lighting to get pricing, manufactures don't give out that info to contractors. I still have no idea how much we are off. I can only visually look at what they quoted and what owner wants and go HOLY CRAP. here is one fixture http://www.originslighting.com/pdfspecs/OR1-9.6.pdf I would like to know what is costs.
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Old 12-21-2010, 08:56 PM   #16
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Re: My Supplier Misquoted A Project


I received a late fax, $12,500, so they were only off by $7,000. First bid was 5600.
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Old 12-21-2010, 09:03 PM   #17
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Re: My Supplier Misquoted A Project


Did they have an explanation why they were so far off?
How did the conversation with the GC go?
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Old 12-21-2010, 09:10 PM   #18
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Re: My Supplier Misquoted A Project


do you have a coupon?
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Old 12-21-2010, 11:00 PM   #19
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Re: My Supplier Misquoted A Project


Quote:
Originally Posted by griz View Post
Did they have an explanation why they were so far off?
How did the conversation with the GC go?
I talked to the super, who is a friend, he said don't call the gc yet intul I get to talk to my supplier. I'm hoping the job specs were changed, when they found out what the lighting packaged was.

we are talking 25 _2x4 drop in fixtures and 7 pendants, 6 led cans.

but the super said well you have a contract, so you have to figure something out. He said keep working the supplier. Weird I never signed any contract, he ****ting his pants.
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Old 12-21-2010, 11:21 PM   #20
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Re: My Supplier Misquoted A Project


Good luck with that HB!

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