Tony Mormino on LinkedIn: Does Using the Lowest Bid Really Save You Money? In the world of HVAC… | 11 comments (2024)

Tony Mormino

HVAC Marketing Addict, Host of HVAC TV (YouTube @hvac-tv) and The Engineers HVAC Podcast (by Insight Partners, HOBBS & Associates) . “The Engineers HVAC Podcast is the best in the world.” - Marie Mormino, Tony’s Mom.

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Does Using the Lowest Bid Really Save You Money?In the world of HVAC projects, it’s tempting to gravitate towards the lowest bid, thinking it will save your budget. But does it truly save you money in the long run? The answer is more complex than it seems.The Real Cost of Low Bids1.Quality of Work: Often, the lowest bid comes from firms cutting corners to reduce costs. This can result in subpar workmanship, leading to frequent maintenance issues and, ultimately, higher expenses over time.2.Material Quality: Cheaper bids might involve using inferior materials. While the upfront cost is lower, the durability and efficiency of these materials are often compromised, leading to premature replacements and increased energy costs.3.Hidden Costs: Initial savings can be quickly offset by hidden costs that emerge due to scope changes, additional labor, and unforeseen complications. A seemingly low bid can escalate into a costly endeavor.4.Project Delays: Companies offering the lowest bid may be working on tight margins, impacting their ability to adhere to timelines. Delays in project completion can lead to operational disruptions and lost opportunities.

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John Rattenbury, PE, CPD, ARCSA AP, LEED AP

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12h

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We also see incidences where the contractor may have been the low bid because they did not include certain costs for coordination drawing preparation, documentation of tests, submission of reports,or following certain delegated designs stipulated in specifications- hoping nobody will enforce them. When the design team does take a hard line to enforce contract requirements, the contractor reacts with change orders claiming they did not price the items and that the design team may be responsible for project delays if they are forced to carry them out. The burden is on the awarding entity to vet out all bids and to interview each bidder to ensure they priced all items or if they specifically excluded them.

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Ivan Radmore

Creating Opportunities

3h

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Warranties aren't particularly beneficial when installers fail because of low bidding and facing undeclared costs often omitted in tender processes. 🤔

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Dan Donati

Owner at DMD Mechanical Inc.

11h

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What do you mean, isn’t it just plug and play? Cheaper is not better? Yeah, I don’t get it.

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Thomas Serwatka

Sales Engineer at Engineered Building Systems

5h

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That can't be real.....

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Terrill Williamson

Area Field Operations Leader, Insight Partners

12h

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You have to be joking right?

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Scott Wyckoff

HVAC/R Technician at Hutchins Hvac Inc.

10h

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Lol that’s an example of no bid, no brains, and no clue…….oh yeah and no cooling.

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Paul Leonardi CMS

Hvacr Instructor at CAMDEN COUNTY TECHICNAL SCHOOL

13h

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Not always the best idea! Read what you get and make sure it is what you want!

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Quentin Webb

Vice President/ Service Manager at Old Dominion Services of Roanoke, Inc.

11h

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No way that's real

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Tony Mormino on LinkedIn: Does Using the Lowest Bid Really Save You Money?In the world of HVAC… | 11 comments (43)

Tony Mormino on LinkedIn: Does Using the Lowest Bid Really Save You Money?In the world of HVAC… | 11 comments (44)

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Tony Mormino on LinkedIn: Does Using the Lowest Bid Really Save You Money?

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