Writing ยท Operations / Property Management
๐ ๐ฅ๐ผ๐ผ๐ณ๐ถ๐ป๐ด ๐๐๐ข ๐ฅ๐ถ๐ด๐ด๐ฒ๐ฑ ๐๐ถ๐ฑ๐ ๐ณ๐ผ๐ฟ ๐ญ๐ด ๐ ๐ผ๐ป๐๐ต๐. ๐๐ถ๐ ๐๐๐๐๐ผ๐บ๐ฒ๐ฟ๐ ๐๐ฎ๐ฑ ๐ก๐ผ ๐๐ฑ๐ฒ๐ฎ.
Gregg Wallick ran Best Roofing in Fort Lauderdale for over 20 years. Won Commercial Roofing Contractor of the Year in 2018.
Last week he pleaded guilty to a $3.5M bid-rigging scheme.
He coordinated with a competitor on who would win each job. They took turns submitting fake high bids so the โwinnerโ could charge inflated prices. For 18 months. On commercial roofing projects. In hurricane country, where owners canโt skip roof work.
Every customer thought they ran a competitive process. They collected three bids. Picked the lowest. Followed the steps.
So letโs invert this.
If you wanted a contractor to rip you off, what would you do?
Use the same 3 vendors every time.
Assume the lowest bid is competitive just because two others were higher. Skip independent cost estimates.
Never compare scope language across bids.
Now flip every one of those.
Rotate your bid pool.
Get an independent cost estimator or ownerโs rep to run their own numbers on big jobs. If your โlowestโ bid is still 15% above independent estimates, somethingโs off.
And compare scopes, not just prices. Colluding bidders often submit suspiciously similar scope documents because theyโre working off the same takeoff. Thatโs the forensic tell nobody talks about.
One more thing thing to consider hereโฆ rigging the initial bid is just the entry point. The real damage compounds through change orders and maintenance contracts you never re-bid. Once a colluding contractor is on your roof, switching costs are real.
And prequalification wouldnโt have caught him. He had the track record, the award, the institutional backing. He was the contractor you prequalify others against.
Trust your vendors. But verify like theyโre stealing from you.
Sometimes they are!
https://lnkd.in/euJsCWPQ