I’m bidding on a small subdivision expansion, about 1600’ of road with sanitary and water. I’ve seen jobs where Contracter supplies material (erosion control, storm water pipe, etc). And I’ve seen some where the bid says owner will supply materials. I would think it best for me to supply and make sure it is included in the bid with some mark up for getting it. Thanks in advance for any input! Shawn
It has good points and bad points Good 1) you make money on material 2) you can order material when you need it instead of having to stockpile it and move it when it is in the way Bad 1) laying out a lot of money before the job starts 2) waiting for your money if they are slow paying
No risk, no return. Personally I would want to supply the material so that I could make the markup.
I am not sure you really have a choice do you? Seldom have I seen projects like that where you can chose to include or exclude materials, but if you have the choice I would let them provide materials. It surprises me sometimes when this happens, because while the owner wants to get the lowest price and if they have the ability to buy materials at wholesale it can save them money. However if there is a problem with defective materials, they end up getting involved with trying to determine if the install or the product was defective. If a fire hydrant is found to be defective the owner will end up fighting with the supplier and paying at least up front for the redo. Doesn't take long for any savings in material mark up to disappear. Doesn't happen often but I have seen it with waterline that was defective from the factory causing all sorts heartache. I don't think it is worth it for most owners to involve themselves to that degree. Especially if they mandate the contractor supplies materials and install. Makes it pretty clean if there is an issue. Its your problem to deal with as the contractor. But if they are willing to "get into mud" let them take a portion of the liability. The money made off materials on competitively bid jobs most often doesn't amount to much in my view, especially as mentioned above by the time you sit on the costs, manage theft and so forth. If owners supplies materials, write the bid so that materials are transported by the supplier to the job and you don't have to mob it yourself or incorporate that time in with your mobilization costs. Everyone will have to account for the same time so it should competitive.
I had a job where a customer said he wanted the multi-colored rainbow rock. I explained there's Alberta rainbow rock and Montana rainbow rock (that has more vibrant colors). I told him a cost from a supplier I used for Montana rainbow rock. One of his neighbors had some work done by another outfit an used rock from a different supplier. He said his neighbor paid less and asked if I could phone the place his neighbor used. I could get it cheaper per yard but only if I took a truck and pup load (double load). It was about 6 yds. too much but he'd said he'd find a use for it and I could just leave it in a pile. Rock was delivered but then he complained it didn't have as nice of colors as what he expected. He obviously hadn't looked very closely at what his neighbor had used. Then he said there was a lot more left over than he had thought and asked me to haul about 4 yards away. I didn't have a dump truck at the time so had to haul it on a 1 ton flat deck in 2 loads. Nice to have the rock at home but what a PIA! I guess it depends on the customer but I wish I had never met this cheap SOB. Customer orders it wrong or the wrong material and somehow they'll find a way to blame you for THEIR screw up.
I get that sometimes too.. Customer wants to supply his own parts.. usually some cheap overseas garbage that I wouldnt use.. I just tellm outright..I'm happy to do the job but>> NO warranty..