In fact, I was blown out of the water.  The winning bid was a good 30% below the number I submitted.  This was honestly shocking for me.  I thought I could be very competitive with a straight 10% mark-up over sub numbers.  And as far as the mark-up goes, I probably was very competitive.  However, I believe that the main difference lies in the numbers other contractors were getting from subs in any type of job, right now you can find many in the plumbing service with https://allserviceplumbers.com/locations/  and electric system repairs.

When I approached subcontractors for prices on this job, nobody really knows who I am.  For all they know, I’m just another contractor that doesn’t want to pay their subs.  Without a history of payment with these guys I imagine that the prices they give me are far from rock bottom.  I think they may be a bit overly conservative in this regard because I have a payment and performance bond and we can always write joint checks from the owner if they are really that concerned with it.  But as always, uncertainty brings about axienty which ultimitely increases price in a hard bid situation.  The good ol’ boys from Leesport who are accostomed to doing business with each other will feel much more comfortable giving numbers with razor thin profit margins to each other.

I was also hurt by that fact that some contractors to whom I solicited bid and bond just flat out ignored me.  So in some cases I only recieved one bid for parts of the work.  This was the case for paving, which was about 30% of the total project cost.  By getting at least three bids for each trade, you ensure a very competitive price on which to add your mark-up.  It’s tough being the new guy.

I spent all week putting this bid together and it turned out to put no money in my pocket.  However, I think I realized that my chances of being competitive in a hard public bid situation are slim and none.  I do not yet have the relationships built up with subcontractors to play this game well.  I think I’m going to modify my strategy a bit and go after private clients a bit more.  Hopefully, financing will loosen in the coming months and I will be able to get some work in the door, ’cause man, I need it.