Foundation Contractors Inc., one of the nation's largest concrete construction contractors, has made the decision to suspend bidding new work where projects are awarded to the lowest bidder due to the erosion of profit margins on this type work. The company will continue to work for existing customers and to perform new jobs on a negotiated basis, where Foundation Contractors can provide quality work at a fair price.
"There are simply too many companies willing to bid jobs at or below cost just to keep operating, and we are unwilling to lower the quality of our work dictated by the price wars or subsidize projects in order to maintain the level of quality we have provided our customers over the years," says Eddie Quarles, president.
"The company is simply mothballing its competitive bidding operations. When the market turns around, Foundation Contractors will be in a very strong position to take on new bid projects."
Quarles insists that this is not the case of a failing company closing its doors on vendors and customers, but one in which the owners have decided to take a break rather than continue to pursue work that would not generate an appropriate return on capital. By taking this step, Foundation Contractors expects to remain strong and maintain the outstanding reputation for concrete work and customer service.