What's happening on DILG?

**vinj** · July 1st, 2013 09:49 AM

Originally Posted by niky

Tengeneneng tragis na mahal na bid docs na yun. Parang ayaw nila na may mag-bid.

Dami pang hoops at red tape na kailangan i-satisfy para makabid man lang.

Companies that rely on gov't projects (i.e. contractors) usually have people whose employed skill is to work out the bidding process and serve as a bag man at times.

**niky** · July 1st, 2013 12:00 PM

Originally Posted by vinj

Companies that rely on gov't projects (i.e. contractors) usually have people whose employed skill is to work out the bidding process and serve as a bag man at times.

Some of the big boys we've bid against and sometime sub-con for opine that the "lagay" is often not worth it given the margins. Hell, calculate the margins based on regular market rates, given the prescribed starting bid, and you're in the red right away. You need big capital and a direct line to overseas suppliers (for raw materials) to make it work at all.

It's still possible to insert some grease money, given the huge volume of the bids, but I think the stricter terms and starting bids do help to minimize it. At least for some of these projects, you know that the price the government itself pays is not inflated. (As long as the supplier does not cut corners)