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re: Paying for a contractor estimate
Posted on 6/10/16 at 12:58 pm to GeeOH
Posted on 6/10/16 at 12:58 pm to GeeOH
quote:
In an open bid project, every single aspect is outline in the bid contract. And that is what is quoted. This guy isn't sending out a contract with specifics, he's asking for that to be given to him.
Um The building code is the specs. It's their business to know the damn building code for their work. That shite doesn't change. The only thing the guy is doing is looking at accessibility, location, runs of conduit and piping needed, obstructions. And you better believe you are going to sign a damn contract (standard one from the business) before work is started.
This shite is a cookie cutter estimate with minimal change.
This post was edited on 6/10/16 at 1:01 pm
Posted on 6/10/16 at 1:20 pm to GeeOH
quote:
And in the bid contracts all of you keep yapping about, YES, your company has absolutely spent a ton of money on getting the project bid ready to send out and legally have their assets covered. So to bid on a said contract, all of the work has been done for you on the specs of the job itself.
In a sense you're correct, but only because the OP isn't submitting a formal RFP with defined specs. This goes back to hiring a contractor without formal drawings.
If he had plans and specs in hand and submitted them to 5 different contractors, should he expect to pay for each bid?
Posted on 6/10/16 at 1:49 pm to Puck82
quote:
Um The building code is the specs. It's their business to know the damn building code for their work.
cookie cutter yet it includes design and detailed electrical, plumbing and plot plans which must be submitted to the city. 3 separate permits, Site work, concrete work, equipment cost to set the genset, electrical and plumbing. Don't forget elevation certificate..This does not even mention specific subdivision restrictions.
Now throw that bid together in an hour.
Posted on 6/10/16 at 2:30 pm to Kajungee
quote:
cookie cutter yet it includes design and detailed electrical, plumbing and plot plans which must be submitted to the city. 3 separate permits, Site work, concrete work, equipment cost to set the genset, electrical and plumbing. Don't forget elevation certificate..This does not even mention specific subdivision restrictions.
Is this their first one to do ever? If not. Is this the first one they have ever done in this area? Most of that is set costs. They will have a detailing fee they charge for every one they have done, they should know what the damn permitting fees are, site work
So again I say a fricking cookie cutter estimate. I promise you an established company isn't reinventing the wheel with these estimates.
This post was edited on 6/10/16 at 2:42 pm
Posted on 6/10/16 at 3:15 pm to Tbooux
I was a bank facilities manager for several years, and dealt with contractors regularly. We were never charged a "consulting" fee for any job that we placed for bid. That said, we were dealing with very large numbers from several hundred thousand to as much as $2-3 million, and the contractors with whom we dealt recognized the sizable pay-off should they be the winning bid, as well as the opportunity to bid on future bank projects. However, for a small home generator job, I wouldn't flinch at a consulting fee. As someone else in this thread pointed out, there could easily be 8-10 hours of work involved in bid preparation unless, you, sir, are providing the plans and specs for this home generator project. From what I read, I sense not. The "consulting" would be to figure out what you want, what you need, and how to make it happen. In other words, they are likely putting considerable thought into their estimate. Otherwise, you can expect one of 2 things to happen. (1), they will prepare some very low-ball specs in order to win the bid, and then charge you an arm and a leg for the inevitable change orders that are sure to follow, or (2) they will heavily pad their estimate to cover their asses. In the case of #1, you're gonna be really pissed when the job either isn't completed to your satisfaction, or costs you significantly more than you were initially told. With #2, the contractor probably won't get the job, but if he did, it's only because every other bid-invited contractor did the same exact thing and padded his estimate mightily. Either way, #1 or #2, you lose. If I was you, I would either go to an electrical engineer, and ask him to prepare the plans and specs, which, I assure you, will cost considerably more than the $125 consulting fee from each of the contractors that you invite to bid. Or, alternatively, I would consult an electrical contractor and offer to pay him a fair and reasonable fee for his thoughts and ideas on the project...with an upfront understanding that you are not, at least at this time, asking for a bid to perform the work. Then, take that information, and prepare your own specs, and have him and other contractors bid on those specs. This will work if you have some degree of knowledge and expertise to begin with, and have some competence in preparing job specs. Note - Specs mean specifications. You have to be specific about the project. Name the generator make and model, specify it's placement on your property, specify how it is to start (manual or automatic), how the wiring is to be run from the generator to the panel, amount of training (if any), length of warranty, etc, etc . Then, see what they come back with. You really want to avoid a situation where you're comparing one contractor's "apples" with another contractor's "oranges". Bottom line, here, is you usually get what you pay for. There aren't many contractors out there who are going to invest the time and effort to give you a meaningful estimate on a "small job" unless they're being compensated for the bid, or have some reasonable expectation of getting this, or future work, from you.
Posted on 6/10/16 at 3:48 pm to Wes Tweegan
Just wow. This is a $7k-$10k job. This is how the whole consultation will go. what is your power needs? We have these models with x options. Where do you want it? Where is your panel box? Natural gas? Where is the meter or closest connection. Ok I will run piping and conduit here and here. And tie in here. That's it. You don't get a custom built generator unless it is for commercial, industrial, or high dollar homes.
Posted on 6/10/16 at 4:00 pm to Wes Tweegan
quote:
Note - Specs mean specifications. You have to be specific about the project. Name the generator make and model, specify it's placement on your property, specify how it is to start (manual or automatic), how the wiring is to be run from the generator to the panel, amount of training (if any), length of warranty, etc, etc . Then, see what they come back with. You really want to avoid a situation where you're comparing one contractor's "apples" with another contractor's "oranges". Bottom line, here, is you usually get what you pay for. There aren't many contractors out there who are going to invest the time and effort to give you a meaningful estimate on a "small job" unless they're being compensated for the bid, or have some reasonable expectation of getting this, or future work, from you.
You should know that a lot of generator companies have sales engineers that create custom specifications for jobs like this for free. It's free because for every spec they make they get a sale.
A smart homeowner would call up the generator manufacturer and get it all lined up before calling a contractor. If nothing else the contractor is putting himself out of business because:
1)Now someone else is doing his work for free
2)The job just became more marketable if specs and plans are done beforehand.
Either way you look at it, it's a bad move to make.
Posted on 6/10/16 at 4:04 pm to Tbooux
quote:
Would have no problem paying if I wanted deliverable s in the estimate such as exact permits required, layout drawings, etc. However I want them to come out tell me whats the best way to do the project and a price in which I then decide who will get my business.
Like the OP stated, there are generator companies on every corner now and for companies that offer other services and do not rely solely on generator sales and installs to stay in business, they probably charge a service fee for the estimate to save themselves the headache of dealing with a customer who is going to call (12) other companies and base their decision strictly off the lowest price. My suggestion would be to find a company who specializes or concentrates strictly on generators and you will probably get the best pricing and product. Or just go with the company that gives the free estimate, has the cheapest price, and is probably insured by the General.
Posted on 6/10/16 at 4:18 pm to b87
I love the guys in this thread that act like $100k and multimillion dollar jobs are the same as $5-10k jobs residential jobs.
If I had to guess said Generator company was tied up with work right now, therefore they didn't need the job. Therefore, what is the harm in charging some people for an estimate to weed out the ones that were not serious.
Charging for an estimate is no different than bidding lower or higher depending on how badly you need the work and how many subs you will have to hire out. Anyone that is in contracting knows this is the name of the game.
Ultimately, if one company can charge for estimates and do well while the rest of their companies can't than that tells you a lot about the company. Mainly, that they are the boss dawg around.
If I had to guess said Generator company was tied up with work right now, therefore they didn't need the job. Therefore, what is the harm in charging some people for an estimate to weed out the ones that were not serious.
Charging for an estimate is no different than bidding lower or higher depending on how badly you need the work and how many subs you will have to hire out. Anyone that is in contracting knows this is the name of the game.
Ultimately, if one company can charge for estimates and do well while the rest of their companies can't than that tells you a lot about the company. Mainly, that they are the boss dawg around.
Posted on 6/10/16 at 4:38 pm to baldona
quote:
love the guys in this thread that act like $100k and multimillion dollar jobs are the same as $5-10k jobs residential jobs.
If I had to guess said Generator company was tied up with work right now, therefore they didn't need the job. Therefore, what is the harm in charging some people for an estimate to weed out the ones that were not serious.
Charging for an estimate is no different than bidding lower or higher depending on how badly you need the work and how many subs you will have to hire out. Anyone that is in contracting knows this is the name of the game.
Ultimately, if one company can charge for estimates and do well while the rest of their companies can't than that tells you a lot about the company. Mainly, that they are the boss dawg around.
If I was getting some sort of deliverable, I would agree with you. Otherwise I am wasting cash just to get an estimate.
Posted on 6/10/16 at 4:48 pm to baldona
My father owned a light commercial/ residential roofing company. There were times when he charged for estimates-- after a hail or wind event, when a lot of people were looking for high estimates to get their insurance companies to pay them more, and then, once they collected the money, find the most inexpensive estimate.
Also, when a house or property was being sold or bought, as most times they were using the estimate as a negotiating tool.
If he knew that 5 or 6 other firms were bidding on a job, he often wouldn't waste his time bidding on it, as he pretty sure he wouldn't get the job.
Now this being said, if a past customer called him for any of the above, he wouldn't charge for an estimate. He built his business on reputation and word of mouth, he was never into the public bid, army of sales people kind of thing.
Also, when a house or property was being sold or bought, as most times they were using the estimate as a negotiating tool.
If he knew that 5 or 6 other firms were bidding on a job, he often wouldn't waste his time bidding on it, as he pretty sure he wouldn't get the job.
Now this being said, if a past customer called him for any of the above, he wouldn't charge for an estimate. He built his business on reputation and word of mouth, he was never into the public bid, army of sales people kind of thing.
This post was edited on 6/10/16 at 4:51 pm
Posted on 6/10/16 at 5:18 pm to doublecutter
Doublecutter, you hit the nail on the head. Upvote, sir!
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