4 ms·
Pretty common strategy in bidding. Undercut the second bidder to get the contract, then run over budget to make a profit.
by nathancahill 9y ago
Pretty common strategy in bidding. Undercut the second bidder to get the contract, then run over budget to make a profit.
- yrb 9y agoThe problem as I see it is you don't have to actively run it over budget in bad faith. Even as an ethical actor you can only price what is specified. However, you can then use your knowledge about likely the real variances that will be needed and risk profile to place a bid that takes this into account to remove margin or discount the bid price.