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Ok here's another question. I get a call from a guy wanting a bid to finish his basement. I come take a look and figure out what he wants. He says he's on a budget and wants to do it in phases as money allows. Because he wants to do it phases, he wants an itemized bid specifying the cost for framing, plumbing, electrical, HVAC, drywall, trim, and paint. Normally i would have given him a price per square foot number, or one number for the whole project, but he wanted it itemized. Im am just starting out on my own, so I'm trying to be accommodating and get the job.
So i crunch the numbers and come in at $31k which is $26 a sqft and he does all the painting including trim. Its a low bid, but again i need the job so i bid it low. He emails me back a few weeks later and says he got other bids ranging from $20k-35k all for similar scope of work. I laugh because i know that $20k will not be similar scope of work. he then proceeds to email me and tell me some of the price variance he received for drywall, trim, and one other and wants to know what i can do on price. He says he's out of town until the middle of December so he's thinking timeframe will be closer to the first of the year.
I decide to email him back and play dumb. I tell him I'm confused and ask why he wouldn't go with the bid of $20k seeing as its similar scope. He emailes back and asks if he can call to discuss. I tell him I'm available all day and then i don't hear back from him. That was earlier this month.
My understanding of Bid Shopping is when someone compares bids and tries to get the contractor they want to work with to lower his price by telling him he got lower bids for these items. Here is the problem. If i come down on some of my sub pricing, i will be in the neighborhood of $23 a square foot which is way too low. Im doing framing, hanging doors, trim, and bathroom tile. Everything else i' subbing out and am not flexible on price. In the email he said he found a couple guys who do side drywall work for a cookie cutter builder in town. Their drywall price was half mine at .50 a square foot for hang, tape, texture. Now i know they aren't licensed and insured, so there is NO way they will work on my job site.
Sooo…what would you do!? Im going to wait until the first of the year and call him and talk. Im not flexible on my price. There is a reason he is calling me and wanting to talk about numbers. He wants to use me as the GC, but wants to get me to do the job as cheap as possible. So here i am in a predicament where i need the money bad…but also want to put my foot down.
So i crunch the numbers and come in at $31k which is $26 a sqft and he does all the painting including trim. Its a low bid, but again i need the job so i bid it low. He emails me back a few weeks later and says he got other bids ranging from $20k-35k all for similar scope of work. I laugh because i know that $20k will not be similar scope of work. he then proceeds to email me and tell me some of the price variance he received for drywall, trim, and one other and wants to know what i can do on price. He says he's out of town until the middle of December so he's thinking timeframe will be closer to the first of the year.
I decide to email him back and play dumb. I tell him I'm confused and ask why he wouldn't go with the bid of $20k seeing as its similar scope. He emailes back and asks if he can call to discuss. I tell him I'm available all day and then i don't hear back from him. That was earlier this month.
My understanding of Bid Shopping is when someone compares bids and tries to get the contractor they want to work with to lower his price by telling him he got lower bids for these items. Here is the problem. If i come down on some of my sub pricing, i will be in the neighborhood of $23 a square foot which is way too low. Im doing framing, hanging doors, trim, and bathroom tile. Everything else i' subbing out and am not flexible on price. In the email he said he found a couple guys who do side drywall work for a cookie cutter builder in town. Their drywall price was half mine at .50 a square foot for hang, tape, texture. Now i know they aren't licensed and insured, so there is NO way they will work on my job site.
Sooo…what would you do!? Im going to wait until the first of the year and call him and talk. Im not flexible on my price. There is a reason he is calling me and wanting to talk about numbers. He wants to use me as the GC, but wants to get me to do the job as cheap as possible. So here i am in a predicament where i need the money bad…but also want to put my foot down.
