Price negotiations with the construction companies

  • Erstellt am 2019-11-24 15:55:39

Hexe3000

2019-11-24 15:55:39
  • #1
Good day. One should learn from the mistakes of the past. I am referring to the two previous topics. I have asked the property management to send me information and contracts promptly in the future (we have a lot of larger construction projects). 1. I was especially surprised by the price negotiation with the company 10 days after submitting the offer and the agreement for a 19% price increase due to "price increases in the last 3 years" (quote from the protocol... And it was not only the VAT that was forgotten). Is that customary? The 2nd bidder was now almost on par in terms of price. 2. I understand that everything becomes more expensive over the year. Therefore, I have understanding if renegotiations occur when the construction project is to take place much later. Are there guidelines? Construction index? Negotiation skills? So, all questions have now been asked and thank you very much.
 

guckuck2

2019-11-24 16:28:19
  • #2
I see no basis whatsoever for such price adjustments. One discusses in advance when the execution will be. Then the price is set. He should just limit his offer. Making an offer and shortly afterwards adding 19% to it is completely unprofessional, unless the scope of services has been changed.
 

Hexe3000

2019-11-24 16:41:08
  • #3
No, nothing was changed.... But unfortunately, this is what happened now. That's why I want to be careful in the future.
 

Dr Hix

2019-11-24 17:35:25
  • #4
What says! That's just not acceptable... it can happen if there are indeed 3 years between the offer submission and the execution date, but not like this. Especially since this certainly doesn't apply so generally. Of course, the industry likes to turn the price screw, so materials become more expensive, but show me a craft business that raises wages every year and then by over 6%
 

hampshire

2019-11-24 21:23:30
  • #5
1.: The decision was apparently professionally prepared.

2.: How is it supposed to work that someone is bound to the price of an old offer – especially since offers usually state how long the price is valid. A new offer may have any new price. The provider does not have to give a reason for a price increase.

The argument about price increase is a smokescreen. Blah blah blah.

What probably happened is: The provider knew that the rejection years ago was not due to the offer itself. Therefore, he re-priced the same offer. He adjusted the prices not to the new cost situation, but to the new market situation and apparently made a good assessment, since he was awarded the contract. It would be interesting to know whether he had information about the competitor’s offer price and was therefore able to position himself well price-wise. In a homeowners' association, someone always talks.
 

Dr Hix

2019-11-24 21:45:19
  • #6


I do not understand the process as if there had been an offer "years ago," but rather a current offer (May 14, 2018) that was corrected a few days later (May 25, 2018) for the price increase of the last 3 years (since 2015) and then in September 2018 additionally anticipated and factored in the price increase for the period until execution (March 2019, i.e. 10 months after the offer).
 

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