Was the Bid Apples to Apples?
Was the Bid Apples to Apples?
July 30, 2010 by Taylor Studios
We recently bid a project along with 20 other firms. Within a couple days, we received the bid tabulation sheet. The bids ranged in price from $150,000 to $675,000. Our bid was in the middle. This was a fabrication-only project so each firm was provided the same drawings. How could the bid amounts vary so greatly? Some of the things I thought of were:
I decided to do some follow-up on jobs we had lost because of a substantial price difference (over $100,000). I sent some of my staff on the road to look at our competitor’s work (see Jason’s recent ). Some of the clients they visited were our past clients, so these clients were able to compare their experience working with us and their experience working with the firm that underbid us. When the clients began talking about their most recent experience, they made statements that included:
At one of the sites we visited we noticed the other exhibit firm used a different fabrication method than we do. In the coming weeks, we will analyze whether that is a more efficient method. At this point, we do know it does not offer the opportunity for the client to critique the work along the way and the natural elements were not the quality we produce – from the species of trees to the undulations in the groundform to the transitions into the mural.
We talked to another client about the design process and whether they got the same level of detail in the design deliverables. We were told our deliverables differed significantly. We have seen the lack of detail in other designs. Many lack even the simplest of measurements or the quantity of graphic panels.
As a company that has a foundation of being frugal and efficient, it can be frustrating to lose work to a substantially lower-priced firm. We have a core value of high integrity and back up our commitments. This means we will not buy the job and change order it later to make up the difference. We will make it according to the samples provided, etc.
We will continue to conduct research and will attempt to show the marketplace the differences in deliverables. When bids come back ranging drastically in price, there is no way the bids can be apples to apples. If the project is awarded to a company simply because they offer the lowest price, one must ask how that firm can provide the same product and service as the other firms.
If you have chosen to work with a firm based on the low price of their bid, how was your experience? Are you happy with the finished product?