Here’s how you can effectively use these modifications. If you’re comfortable with your pricing in your home state, identify the increase in another state’s city and adjust your price accordingly. If your state is listed as being 10% below the national average and you’re anticipating a proposal in another state where the city rate is 30% above average, consider an increase of 40% for some portions of your estimate, if applicable.
In some major cities the costs can be as high as 60% or more above the national average for crane and other services such as electrical installation.
In addition, there might be union requirements to consider. Add to that list, parking fees, traffic tickets, meals and lodging and all other expenses that the local contractor is fully knowledgeable about.
Oftentimes a project is awarded to a contractor that did not take local economic and geographic conditions as well as regulations into consideration.
The bidder loses money on the project. A reputable and knowledgeable contractor loses the opportunity to complete the job they should have received.
Oftentimes the low bidder will look for every opportunity for a change order to lower his losses and may possibly provide a substandard, perhaps unsafe installation to minimize costs…making the client the biggest loser.
If you’re interested in finding out what the highest allowable per diem rate is that you are allowed to reimburse to your employee and still maintain the full deduction, visit Per Diem Maximums.
Whenever you receive a quotation from a contractor that appears to be too low, identify if they have the proper insurance, safety training and the expertise to complete the job. Oftentimes they don’t! If a supplier’s or service provider’s pricing is also extremely low, ensure that the materials and/or design meet the specifications or that they’re competent in providing their service offerings. Check references at least twice and you’ll only have to cut the purchase order once!