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Because of the arena we work in we have to fight tooth and nail for contracts. Here's why: One of our big contracts is for a couple of public service bodies; a

by ErrantX 16y ago

Because of the arena we work in we have to fight tooth and nail for contracts. Here's why: One of our big contracts is for a couple of public service bodies; as with all contracts at this level there is a bid process. We are the smallest firm in the bid process, previously (under the same sort of contract) we have done twice as much work for these bodies for half the cost (compared to the other 3 current contractors - being small and agile means we are able to work really efficiently). From a technical standpoint we are by far the best option for them. But the CEO's of our 2 main rivals "play golf" with all the managers of these bodies at weekends... they offer them a much lower hourly rate than us and promise certain limits on hours/job that takes it just under our quoted overall cost. Then they schmooze the management into putting a good word to the legal department (who make the decision) for them. Everything is, of course, legal - but who is going to ignore what their boss is "suggesting". Trouble is; 6 months down the line the hours per job starts to creep up dramatically ("as you see in subsection e; we are now having to account for ISO1003490 compliance which adds drastically to administration cost..."). For us, though, fortune favours the honest. In one contract that we lost it took 3 months for the contractor they chose to become unable to cope with the workload - cue panicked phone call to us ("someone who can handle it") and the contract is re-awarded... But it's a pain to go through this all the time, and we are luckier than most companies in the same position :( sucks The last time round the process was much like the one the same Redditor discusses here: http://www.reddit.com/r/Economics/comments/c84bp/how_realworld_corruption_works/c0qrt6i http://www.reddit.com/r/Economics/comments/c84bp/how_realwor... (note: we don't work for the DOD, it's just the same method) But it is still bitch to try and out manoeuvre the "big guys".

arethuza 16y ago
That's why I was glad to get out of working for any organization that has a business model based purely on "professional services". As far as I could see, who the clients would choose had nothing to do with the ability of the vendors to actually deliver something. Occasionally we'd get involved in clearing up the mess left by other, much larger, companies - which I found pretty soul destroying. On one occasion we bid alongside a much larger company who when they actually got the work turned round and subcontracted us to do the work - they did nothing apart from occasionally turning up a meetings. Nobody else, least of all the client, seemed to regard this as odd.
revorad 16y ago
I used to work in an organisation which sounds very much like yours. Our rivals also played the same undercutting tricks to get contracts and then often couldn't deliver. The sad part was that then they would subcontract us to do the work, instead of us doing it in the first place.
- Retric 16y ago
  FYI: That's when you increase your rate above your initial bid. Just call it "administrative overhead" because you now need to keep the client and the person contracting the work to you happy.
  - revorad 16y ago
    Our company usually did well financially out of those situations, but considering our rivals wasted a lot of time figuring out that they don't know how to do the job, our workload and timescales were just crazy.

by ErrantX 16y ago

arethuza 16y ago

That's why I was glad to get out of working for any organization that has a business model based purely on "professional services". As far as I could see, who the clients would choose had nothing to do with the ability of the vendors to actually deliver something. Occasionally we'd get involved in clearing up the mess left by other, much larger, companies - which I found pretty soul destroying. On one occasion we bid alongside a much larger company who when they actually got the work turned round and subcontracted us to do the work - they did nothing apart from occasionally turning up a meetings. Nobody else, least of all the client, seemed to regard this as odd.

revorad 16y ago

I used to work in an organisation which sounds very much like yours. Our rivals also played the same undercutting tricks to get contracts and then often couldn't deliver. The sad part was that then they would subcontract us to do the work, instead of us doing it in the first place.

Retric 16y ago
FYI: That's when you increase your rate above your initial bid. Just call it "administrative overhead" because you now need to keep the client and the person contracting the work to you happy.
- revorad 16y ago
  Our company usually did well financially out of those situations, but considering our rivals wasted a lot of time figuring out that they don't know how to do the job, our workload and timescales were just crazy.