Discounting;
1. Discounting at time of bid is taken on a case by case basis and should not be viewed as a rule of thumb. There are many different sets of circumstances that affect the amount of discounting on any given line item. Some of the considerations are; A. Do you know the sub with the low number B. Do they have a history of being low C. What are the market place rumors; are they looking to build back log, keep a competitor away from a client of theirs, having financial difficulty………….. D. Did you do your own take off and does the amount make sense to you. If you didn’t do the take off how does it stack up with information from other subs E. Could the sub be missing something or have a competitive advantage F. Do you need to split the difference between the number 1 and 2 sub G. Do you have enough coverage? If not what do you think the market will be based on recent experience H. What percentage of buy would that number represent? I. Is the number out to all of your competitors and how much of your buyout would be eaten up if the number doesn’t hold up J. Can you solicit additional pricing from the market and how close do you think you can come to the bid number?
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