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  1. #1
    Join Date
    Dec 2007
    Posts
    887

    Default A very odd situation!!

    I am pricing up a job between two companies at the moment. Both companies have great references and are masterbuilders, having won awards, both very prestigious companies etc. Let's call them builder A
    and builder B.

    This is the situation.

    Builder A pretends to be a customer and submits project with my specs to Builder B. Builder B catches onto it right away and tells Builder A's boss and myself.

    Is this quite underhand or simply industry standard practice? Is this considered deceptive to obtain information like this? Really throws a spanner in the works.

  2. #2
    Join Date
    Dec 2007
    Location
    Vienna, Austria
    Posts
    2,662

    Default

    I can't say if it is a common practice however in my mind Builder A has just been proved to lack integrity. Obviously Builder A wants to job so much they want to see what Builder B is charging so as to undercut them. That would indicate to me that if A got the job they would take every short cut they could and the build quality would probably be of a lower standard than Builder B. I would contact Builder A and state that because of the displayed lack of integrity they are going to be excluded from the Job.
    The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

  3. #3
    Join Date
    Dec 2006
    Posts
    1,656

    Default

    But then A gets the pip and tells B to charge what he pleases as there's no competition anymore. I'd still play them off each other for price (assuming A's awards and reputation is as good as you say).

  4. #4
    Join Date
    Dec 2007
    Location
    Vienna, Austria
    Posts
    2,662

    Default

    Quote Originally Posted by k1w1 View Post
    But then A gets the pip and tells B to charge what he pleases as there's no competition anymore. I'd still play them off each other for price (assuming A's awards and reputation is as good as you say).

    NO...... you go and find Builder C to compete with B. A is morally corrupt and is not concerned with accurate pricing just getting the job.... Hence can not be trusted to do a good job.............think leaky building... if builders had had more integrity there may not have ever been such a problem.
    The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

  5. #5
    Join Date
    Dec 2006
    Posts
    1,656

    Default

    Read his post - BOTH have awards and great reputations/references etc.

    I don't think you can automatically assume intrigue and spying in this case. It might be a reasonable case of "market research" for pricing structures. Perhaps the build has complicating factors. I'd hear A out first, listening very carefully to his reaction to you giving him the kick in the goolies.

  6. #6
    Join Date
    Dec 2007
    Location
    Vienna, Austria
    Posts
    2,662

    Default

    Quote Originally Posted by k1w1 View Post
    Read his post - BOTH have awards and great reputations/references etc.

    I don't think you can automatically assume intrigue and spying in this case. It might be a reasonable case of "market research" for pricing structures. Perhaps the build has complicating factors. I'd hear A out first, listening very carefully to his reaction to you giving him the kick in the goolies.

    I am based in Europe and my understanding is that here such behaviour would end up in court. If it is not spying then what is it? If B accurately surveys the materials requirements and competitively prices the labour costs and A simply submits a bid to beat B then there has to be some cost cutting by A if they are awarded the contract. A can only do that cost cutting by short-changing on labour costs and going for cheaper materials.

    Knowing that A is prepared to "cheat on the bidding process is a reasonable predictor ( in behavioural terms) that they will cheat during the building process. If I was the person building I would always have doubts about the trustworthiness of A. That does not mean B would do a better job rather that I would know that there is a higher risk involved in employing A.

    Even assuming ( Which I wouldn't) that A is just operating intelligently it still leaves a huge doubt in my mind as to their ability to accurately price a job to current market conditions.

    In my work we often let huge contracts if any contractor is caught doing the equivalent to "A" they are immediately dropped from the bidding process and added to a black list of unapproved suppliers.
    The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

  7. #7
    Join Date
    May 2005
    Location
    Auckland
    Posts
    264

    Default

    Quote Originally Posted by k1w1 View Post
    Read his post - BOTH have awards and great reputations/references etc.

    I don't think you can automatically assume intrigue and spying in this case. It might be a reasonable case of "market research" for pricing structures. Perhaps the build has complicating factors. I'd hear A out first, listening very carefully to his reaction to you giving him the kick in the goolies.
    Ring them

    There could be 100s of reasons.
    Maybe Builder A is busy and knows builder B is a good builder and not wanting to turn you down is trying to get your job done. Subcontracting the job out.

    Allan

  8. #8
    Join Date
    Dec 2007
    Location
    Vienna, Austria
    Posts
    2,662

    Default

    Lets take the scenario further knowing all there is to know Builder A is awarded the Job. Would Builder B have legal recourse against Builder A and the person who let the contract?
    The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

  9. #9
    Join Date
    Dec 2007
    Posts
    887

    Default

    Thank you all for your responses.

    This isn't really a formal tender process and I don't think I am bound by contractual law yet as there is no hefty document charges, no outlines of tendering process, no rules I (as the principal) have set myself to follow.

    I should add that Builder A I am dealing with a salesperson and Builder B I am dealing directly with the builder.

  10. #10
    Join Date
    May 2008
    Posts
    3,508

    Default

    I'd just stand back and let A and B submit their tenders.
    What A and B do to each other is none of my business though it is interesting to hear stories.


 

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