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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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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.

Re: Ethical question for those who often take bids for work [Re: Teal28] #7758611 02/28/20 01:29 PM
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Originally Posted by Teal28
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....


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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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Originally Posted by Teal28
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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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.


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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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Originally Posted by reeltexan


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....


Originally Posted by Sneaky
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Originally Posted by beaversnipe
Actually, BBC is pretty damn good

"You Cannot Simultaneously Be Politically Correct And Intellectually Honest!"
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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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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Originally Posted by Texas Dan
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.


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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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Originally Posted by HWY_MAN
Originally Posted by Texas Dan
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.

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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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.


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