Blogs Contractor failures are coming soon?
I have been getting a few calls from clients lately looking for the surety company personnel that handle takeover work of failed firms. Seems a lot of people are starting to get the feeling the time has come when the low ball bids are going to come back and haunt the bidders. We have begun to see some stress in the marketplace and I would expect this to rapidly increase during the second half of this year. To much job borrow going on which makes firms count on getting the next job to survive. With the competition today this strategy is only going to last so long. Long run this is probably good news as it will weed out the firms the weaker firms and leave behind healthier, better run companies.
June 4th, 2009 at 2:40 pm
We are constantly bidding projects against “low ball” bidder. Just today, following up on a bid submitted ,we found out that the concrete contractor chosen was 30% lower than the other four bidders. In checking out his license, we discovered he does not have workers compensation insurance. It is not only hard to understand why these people get hired over reputable companies but quite frustrating. It will be none too soon, for me, for the people to a problem of the past.