Posted 11 June 2013
It is interesting that a number of top contractors are publicly acknowledging they won’t take jobs at a loss.
Suicides bids normally lead to further problems down the road for not only the main contractor but very often the client and the supplier. This has to be proof that the more astute consultants and clients are realising that price on its own cannot be a good basis to place business.
It often leads to real problems if small unexpected issues arise with insufficient funds to cover contingencies. This can result in sub-contractors or suppliers not getting paid and in extreme cases the main contractor going bust part way through a contract.
Whilst it’s important to be competitive , the “cheapest” normally means something has been left out. The Latin phrase “Caveat Emptor” or “Let the Buyer Beware” is more relevant than ever.