Cost over runs.

[T_O_Bull]

I used to be in a business where I had to bid every job. Was always held to my quote. Why is it that the Federal and State Governments just kick in the extra costs. This is absolute BS. If you can't submit a good quote then pay the price or get out of the business. T_O_B

[Count 'Bility]

Contracts, waivers, etc. dont mean sh#t anymore. They really dont. It dont matter what you have for bindings or disclaimers. There's roads around everything.

[BigRedBuster]

This is actually something I know a little bit about. I have bid on government contracts and received some fairly large ones.

 

One problem is, many times, the government (especially the military) wants you to bid on projects that aren't going to start for 6-12 months. THEN, that project might not be completed for another six months. So, some of that project won't be done for up to 18 months from the time of bid sometimes.

 

I can honestly say that I have absolutely no clue what my total costs are going to be 18 months from now and when we do a military contract it is bid down to very low margins.

 

So, the government allows you to adjust your pricing as the project is being done. If I remember correctly, the largest one I did had the ability to adjust once per month with a maximum per month you can go up. Now, I went a step farther and put in my proposal that any adjustments would be directly tied to my raw material costs. So, if my raw materials would go up 6% that month, I would adjust my pricing 6%. They really liked that and it was a part of why I got the contract.

 

With as slim of margins as we work on with these projects, there would be no way in hell I could bid these jobs out 12-18 months. I am sure the system is abused. Not every contractor abuses it though.