Benefits of Hiring a Plumbing and Fire Sprinkler Repair Subcontractor with Overhead Costs

Sub’s with Overhead vs. Low-Ball Bidder
Case No. 2009-2011

As a commercial plumbing and fire sprinkler repair company in Florida, we strive to stay ahead of our competitors and deliver superior service. Whether it is a general contractor looking for the best bid number, a homeowner with a leaky toilet, or a condo manager needing a fire sprinkler inspection, we are well-equipped to handle diverse needs. Our previous achievements serve as a foundation, and now we must continue to find ways to provide excellent service while still producing competitive bid numbers.

• Gain better awareness of how our company is perceived by the customer
• Provide what the customer is seeking from our service
• Determine at what cost to overhead

So where does that point someone looking to sell their overhead and improved customer service in our industry filled with low bidders?

To be a good subcontractor, commercial plumbing, fire sprinkler or other trade, they should focus their attention to cost efficacy and the results from recently completed jobs and jobs in progress.

With that data in the bid, you know it’s correct. Well, all bid estimates are wrong so, more correct. Revisit this several times during the job.

• Determine what is your true cost of a job?
• What labor hours you have on the estimate versus hours off the time cards?
• Have you included the overhead burden for office staff?

If not, you might be underestimating the actual costs associated with providing and maintaining high-quality fire sprinkler repair services and potentially not optimizing the management of those expenses.

We have to ask ourselves, “does the consumer want a fire suppression system installed by a contractor focused on excellent service and quality or the lowest bid number?“

The established subcontractor with an overhead-burdened cost structure may not have the lowest bid but I know will provide a better service and complete working system. They chose to seek good business relationships and work for and with a team that recognizes having a well-established subcontractor specializing in installation, repair and service. Unlike their low bidder competitors, they are able to maintain a staff of highly trained craftsmen, consultants and experts, so every job receives the attention of skilled masters with a singular goal: getting the job done right. It is a cost and the time to educate the buyer that they should want:

• Better bid accuracy
• Meets or exceeds the construction schedule
• Subs that will construct a good product for the owner’s intended purpose
• A vendor that will be in business to offer future maintenance and service

At the end of every fire sprinkler repair job, everyone involved has made an investment. It is common for most individuals to reflect on that investment when closing a job file. Should you follow up with those that took the low bidder when their repair is complete? Perhaps your company should be on their project manager’s buyout list for their next fire sprinkler repair job.

Do you think a “lesson-learned?” call could result in more work for the overhead-burdened sub?