How bad it really is out there.

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I bid a job today for the State of Maryland.   Since it was a by the hour contract and they had to spend $25,000 with you in a year.  All you had to do was build snow plow mounts and repair dump truck bodys.  So it was a nice contract to get.  I had looked into last years contract and the winning bid was $67 per hour.  Since its Government money the check is always there and always good.  So I figured, I could knock my normal $95 per hourly rate down to $64 an hour.  My welders helper would be $51 per hour.  I wouldn't make as much money as normal but not have to worry about getting paid.   But some idiot bid the job for $35 per hour.  It was a pervailing wage job.  Aka you have to paid the welder $21 an hour basically.  $35 an hour doesn't even cover any costs.   They also bid the welders helper at $16 per hour.   The next lowest bid was $40 per hour for the welder and $7.50 (not a typo) for the helper.   You can't even pay someone minimum wage to be the helper.   The other bid was $45 for the welder and $35 for the helper.   WTF!!!!!!!!!!!!  Some people need to just throw in the towel and find something else to do.  No wonder I haven't won any big jobs lately.   To bid a job for $35 an hour is just completely nuts.  When I work for my buddy on welding jobs for his company.  I get paid $35 an hour and all I have to bring is my helmit and gloves.   Not a fully equiped service truck, welder, rod, gas, etc. Thank you for my rant.  I feel better now. Lincoln 300 Vantage 2008300 Commander 1999SA250 1999SA200 1968Miller Syncrowave 200XMT350MPA/S-52E/xr-15Xtreme 12vs Millermatic 251 w/30A  Millermatic 251 Dialarc 250 Hypertherm 1250 GEKA & Bantom Ironwokers
Reply:I think in my area, a manufacturer calculates the labor rate right around that dollar amount, then add in the cost + mark-up of materials.  Right now, I'm in the process of creating a light manufacturing company & will be using students in the welding program to be the employee's.  Figure they can get manufacturing experience & work study credits along with a paycheck.Most local manufacturer's are pretty tight lipped about labor costs though.MarkI haven't always been a nurse........Craftsman 12"x36" LatheEnco G-30B MillHobart Handler 175Lincoln WeldandPower 225 AC/DC G-7 CV/CCAdd a Foot Pedal to a Harbor Freight Chicago Electric 165A DC TIG PapaLion's Gate Build
Reply:I feel your pain.  I haven't had enough side work to cover my costs on running a business for the last 4 months or so.  I'm working days for someone else to pay the bills.  Maintaining my equipment and insurance is pinching my budget with no work coming in.  I just bid a small job for the city of Dayton, nothing special, but enough money to make up for the shortfall in work over the last few months.  It'll cover the expenses I'm out of pocket on, if they call back and agree to go ahead with the project.The bidder who won the job you bid on, is going to lose his shirt at $35/hr.  Taxes and insurance will eat him alive.  My costs are pretty reasonable being that I'm in the country.  I can't imagine what vehicle and business liability must run you in a major metro area.  Let alone all the other costs that go into running a business.The only other thing I can imagine is that maybe the winner was a medium-large company that's making their nut on some other projects, but they don't have enough work to keep all their employees and equipment busy.  In that case this bid might be a break even or a loss, but it lets them keep experienced employees on the payroll....guys they might otherwise have to lay off... Originally Posted by Xtreme FabricationI bid a job today for the State of Maryland.   Since it was a by the hour contract and they had to spend $25,000 with you in a year.  All you had to do was build snow plow mounts and repair dump truck bodys.  So it was a nice contract to get.  I had looked into last years contract and the winning bid was $67 per hour.  Since its Government money the check is always there and always good.  So I figured, I could knock my normal $95 per hourly rate down to $64 an hour.  My welders helper would be $51 per hour.  I wouldn't make as much money as normal but not have to worry about getting paid.   But some idiot bid the job for $35 per hour.  It was a pervailing wage job.  Aka you have to paid the welder $21 an hour basically.  $35 an hour doesn't even cover any costs.   They also bid the welders helper at $16 per hour.   The next lowest bid was $40 per hour for the welder and $7.50 (not a typo) for the helper.   You can't even pay someone minimum wage to be the helper.   The other bid was $45 for the welder and $35 for the helper.   WTF!!!!!!!!!!!!  Some people need to just throw in the towel and find something else to do.  No wonder I haven't won any big jobs lately.   To bid a job for $35 an hour is just completely nuts.  When I work for my buddy on welding jobs for his company.  I get paid $35 an hour and all I have to bring is my helmit and gloves.   Not a fully equiped service truck, welder, rod, gas, etc. Thank you for my rant.  I feel better now.