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Author Topic: Freight charges in bidding?  (Read 1882 times)

Jerry Turnbow

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    • Sound On Site Audio Services, LLC
Freight charges in bidding?
« on: October 19, 2011, 01:12:15 AM »

Just curious about what others typically do when biddnig an installation - do you include freight in your proposals, or just materials, labor, warranty, etc., with freight (and taxes, where applicable) is added on when the actual costs are incurred?

In a former life (20+ years ago) we included a percentage for freight, but it was a much bigger company, so it didn't need to be dead accurate.  As a small contractor, it can be pretty significant if it's too far off.
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Jerry Turnbow
Sound On Site Audio Services, LLC

Brad Weber

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Re: Freight charges in bidding?
« Reply #1 on: October 19, 2011, 03:58:26 PM »

In some cases there may be a Bid Form provided that you will have to use.  Otherwise, for a lump sum project then where it may be reflected in the numbers can vary but I don't see anyone signing a contract for an installed system that does not include the freight/shipping in the numbers presented.  Think of it this way, what do you do if someone refuses to pay the freight and the rest of the Contract commits you to providing and installing the item?  It's probably better to include any costs that you know will be incurred in order to perform the work defined, even if you have to guesstimate them.
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Hal Bissinger/COMSYSTEC

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Re: Freight charges in bidding?
« Reply #2 on: October 19, 2011, 07:17:07 PM »

Freight charges should be added to the item cost before markup. That's what it costs you for the item. If you are just bidding you may have to guesstimate. You never want to itemize pricing unless you absolutely have to- you ideally only want to give a bottom line and for that you say that it does not include any applicable taxes.
 
-Hal
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Jerry Turnbow

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Re: Freight charges in bidding?
« Reply #3 on: October 30, 2011, 03:19:15 PM »

Thanks, folks!  I appreciate the info.  I ended up doing just that - making an educated guess on the freight costs on a project that looks like I'll be picking up the order this week.  I'm keeping my fingers crossed that I'm in the right ball park on.

Take care!
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Jerry Turnbow
Sound On Site Audio Services, LLC

ProSoundWeb Community

Re: Freight charges in bidding?
« Reply #3 on: October 30, 2011, 03:19:15 PM »


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