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Re: Ethical question for those who often take bids for work
[Re: Texas Dan]
#7758609
02/28/20 01:28 PM
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Joined: Nov 2011
Posts: 1,114
Flashprism
Pro Tracker
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Pro Tracker
Joined: Nov 2011
Posts: 1,114 |
Either handled and or managed procurement for major corporations all my working career. First you should make sure all bidders are of equal status as to capability. You work for your company and your responsibility is to get the best overall offer. I often would give suppliers general information as to bid status. To ensure my company got the best deal. If a company who had a proven performance and may have been previous supplier with excellent result. I might say you are too high. Sometimes I would do so even if they weren't to make sure they didn't have extra cushion. No one has to take a job.
I dealt in this field for over 40 years and maintained total ethics never took a dime but I was occasionally offered bribes. I can always look myself in the mirror and know my company's interest was always my priority.
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Re: Ethical question for those who often take bids for work
[Re: Teal28]
#7758611
02/28/20 01:29 PM
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Joined: Jan 2011
Posts: 65,519
SnakeWrangler
THF Celebrity
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THF Celebrity
Joined: Jan 2011
Posts: 65,519 |
Best value for the customer is not always lowest price. Never tell subs the others exact number. negotiate in round numbers to make sure the best value is given. Yup....lowest bid usually bites you in the butt....
I believe in science and I’m an insufferable [censored] Actually, BBC is pretty damn good "You Cannot Simultaneously Be Politically Correct And Intellectually Honest!"
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Re: Ethical question for those who often take bids for work
[Re: Teal28]
#7758615
02/28/20 01:34 PM
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Joined: Jan 2007
Posts: 26,188
KRoyal
Texoma Legend
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Texoma Legend
Joined: Jan 2007
Posts: 26,188 |
Best value for the customer is not always lowest price. Never tell subs the others exact number. negotiate in round numbers to make sure the best value is given. Yep I’ve been bit several times but my hands are tied 90% of the time. Government forces me to take the lowest bid and if I don’t I better have some rock solid documentation as to why I went with a higher bid.
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Re: Ethical question for those who often take bids for work
[Re: Texas Dan]
#7758617
02/28/20 01:35 PM
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Joined: Jan 2007
Posts: 15,480
reeltexan
THF Celebrity
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Posts: 15,480 |
You may not want the lowest bid. There's usually a reason that it's the lowest.
Old rule of thumb was - three bids - Throw out the lowest and the highest.
"Give me an Army of West Point graduates and I'll win a battle... Give me a handful of Texas Aggies and I'll win a war." - General Patton
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Re: Ethical question for those who often take bids for work
[Re: reeltexan]
#7758621
02/28/20 01:37 PM
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Joined: Jan 2011
Posts: 65,519
SnakeWrangler
THF Celebrity
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THF Celebrity
Joined: Jan 2011
Posts: 65,519 |
You may not want the lowest bid. There's usually a reason that it's the lowest.
Old rule of thumb was - three bids - Throw out the lowest and the highest.
Probably a good rule to follow....
I believe in science and I’m an insufferable [censored] Actually, BBC is pretty damn good "You Cannot Simultaneously Be Politically Correct And Intellectually Honest!"
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Re: Ethical question for those who often take bids for work
[Re: Texas Dan]
#7758675
02/28/20 02:18 PM
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Joined: Jul 2010
Posts: 6,862
HuntnFly67
THF Trophy Hunter
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THF Trophy Hunter
Joined: Jul 2010
Posts: 6,862 |
I have found this paradigm to be consistently true:
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Re: Ethical question for those who often take bids for work
[Re: Texas Dan]
#7758682
02/28/20 02:39 PM
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Joined: May 2006
Posts: 31,055
HWY_MAN
THF Celebrity
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Joined: May 2006
Posts: 31,055 |
Three companies have submitted bids. Is it ever ethical to tell just one of the companies their bid was not the lowest and to re-bid?
I say no but want to hear from others who routinely take bids and approve projects.
TIA Absolutely not.
Yes! A Weatherby does kill them deader.
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Re: Ethical question for those who often take bids for work
[Re: HWY_MAN]
#7758683
02/28/20 02:43 PM
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Joined: Nov 2010
Posts: 6,287
scalebuster
THF Trophy Hunter
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Joined: Nov 2010
Posts: 6,287 |
Three companies have submitted bids. Is it ever ethical to tell just one of the companies their bid was not the lowest and to re-bid?
I say no but want to hear from others who routinely take bids and approve projects.
TIA Absolutely not. Man up and just buy from the best salesman.
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Re: Ethical question for those who often take bids for work
[Re: Texas Dan]
#7758929
02/28/20 07:28 PM
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Joined: Aug 2005
Posts: 6,744
psycho0819
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Posts: 6,744 |
It's not an ethical practice, but happens none-the-less. Over the course of my career in the construction industry I have become pretty good at identifying companies wanting bids from me so they can use my numbers to beat up their preferred contractors and get better pricing. I quickly stop dealing with companies who practice that.
On the other hand, many times projects must be competitively bid out when one contractor already has the project locked down, and I am often "that" contractor. We provide turnkey service from design to handover of the project, so other contractors are pretty much screwed to begin with, and most will often take the bait in hopes they can unseat us, but they are hardly ever successful at doing so.
The methods used to award projects have changed a lot in my industry over the last few decades. Contractor loyalty is almost a thing of the past, instead companies will award to the lowest bidder regardless of how well they have covered the project requirements, then literally be more than willing to bankrupt a contractor's company in the process of getting the bottom line they had on paper in the beginning. In the end those projects often end up over budget, and over schedule, when it would have been more efficient to just pick a reputable contractor who had their bases covered in the original bid. You'd think the customers would learn lessons from those instances, but most seem to continue down that path anyway. It is truly puzzling sometimes.
Tolerance is the virtue of a man without conviction.
The end of the world began the day it was created, and life is a sexually transmitted terminal disease.
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