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As low bids continue to flow throughout the world's demolition industry, we'd like to know where low bidding contractors are making their savings. Are they cutting back on equipment and other operational costs or is the recession impacting on wages and investment in training and safety?
We would think all of the above....
"As low bids continue to flow throughout the world's demolition industry, we'd like to know where low bidding contractors are making their savings."
This will only ever be a short term solution and those that buy into this and jump on the low bid merrygoround will soon find themselves in even bigger trouble then before they started.
Personally I think a lot of it comes down to not putting any costs against their equipment when they price the tender, which is fine in the short term and may keep the wolf from the door for a while but sooner or later they will end up with machines worth 0 as no contribution to cost means lack of maintenance and upkeep and no money to replace the ones they ruined by not maintaining them..............................
Professional companies wont and they will walk away from the doing jobs like that. Just depends on how professional your company is and what image you want to portray, personally I would rather stand my machines in the yard and let them rust than put them out there for nothing or with an unqualified operator, but maybe thats just me.
The problem comes when people start to lower their own standards to try and compete with the dodgy companies willing to fly by the seat of their pants and the market just becomes a free for all bidding war.
Personally I think the courts are also to blame as when the HSE or EA do manage to get people into court they slap them with fines like £4,000.00 which is no deterent at all stick another 1 or 2 noughts on the end of them fines and then you might stop them but until then its just another problem for the industry to try and overcome.
