Lowballing don't just happen in surveying.
I also develop / build / remodel real estate, and have been learning lessons for sure, one biggie is taking the low bidder for projects.
As a bean counter it looks good because it sure looks great for the budget spreadsheet but in reality the dregs of society show up and apply their character to the project which is usually total BS and impacts the quality accordingly.
When working within a tight budget it is very tempting to hire Mr lowball but usually works out the same, cut corners, lies, late, and worst of all have to pay someone else to fix the f ups.
When am I going to learn my lesson? I declare today!! No more dumbasses on my jobsite, even if the cost is 25% higher.
You might think that for a guy who made a living selling high end surveying services for 20 years it would be a no brainer, I already understood the concept, but alas apparently I still needed to learn a lesson when on the other side of the situation.
90% of the time lowball price is a fantasy being sold by ignorant dumba$$es, not real, definitely not quality.
One of the US astronauts once said something about it being scary to travel through outerspace in a vehicle designed and built by the lowbidder.
Wasn't that quote in the movie Armageddon?
I think it's impossible to make a generic statement about lowballers.
example,
Bid A - $10,000
Bid B - $8,000
Bid C - $6,000
Bidder A has 20 years experience, great reputation, well-established organization. VP reviews the project and signs the proposal.
Bidder B is someone you met through your network of colleagues. References check out. Job seems to be within their capabilities. Smaller organization, but well-established.
Bidder C is a small company. Experienced skill set required to complete the job. Not many references. Hard to reach. Calls after work hours.
I'd probably cut Bidder A before Bidder C. I don't want to pay for Bidder A's overhead.
Then, it would be a matter of capabilities and my gut feel (integrity, personality, insurance, etc) between Bidder B and C. If B was my preferred, I'd take a shot at negotiating them down.
In some cases, Bidder C is a great value and can get the job done. I just completed a project with a Bidder C kind of person. It wasn't a big project so I could afford the risk. The result was an incredible value. I'll use him again.
> Lowballing don't just happen in surveying.
>
> I also develop / build / remodel real estate, and have been learning lessons for sure, one biggie is taking the low bidder for projects.
>
> As a bean counter it looks good because it sure looks great for the budget spreadsheet but in reality the dregs of society show up and apply their character to the project which is usually total BS and impacts the quality accordingly.
>
> When working within a tight budget it is very tempting to hire Mr lowball but usually works out the same, cut corners, lies, late, and worst of all have to pay someone else to fix the f ups.
>
> When am I going to learn my lesson? I declare today!! No more dumbasses on my jobsite, even if the cost is 25% higher.
>
> You might think that for a guy who made a living selling high end surveying services for 20 years it would be a no brainer, I already understood the concept, but alas apparently I still needed to learn a lesson when on the other side of the situation.
>
> 90% of the time lowball price is a fantasy being sold by ignorant dumba$$es, not real, definitely not quality.
> In some cases, Bidder C is a great value and can get the job done. I just completed a project with a Bidder C kind of person. It wasn't a big project so I could afford the risk. The result was an incredible value. I'll use him again.
I would try to negotiate B down
I have played the C game for a good while, mainly due to the Benjamins, it has worked out a good many times however I had to invest a lot more of my time to make sure it went down correctly. I have gotten screwed also,one time too many. I always feel like these guys are trying to cut corners lie and backstab as that's their game lowball then cut corners.
These days I am going for consistent reliable professional performance at a reasonable rate, looking for the contractor that goes the extra mile because of his own character not because of me staying on his arse.
Looking for someone that negotiates their best deal and then does a bang up rock solid job on time no talking just hard smart work leading to quality results.
I will pay a little more for someone like that...of course I would like to pay less 🙂
I have a ton of respect for true craftsman regardless of their trade.
and that astronaut was Steve Buscemi. =-)