However, I do have serious problem with Company A dictating that for Y purposes your bid must be X amount of dollars. At that point it is simply a NOT a contractor-sub contractor relationship any longer.
This is the main thing I was talking about. They require us to fill out a "bid." The way we do this is by going to their website, entering a portal to an online estimator site (which is created by Blue Book,) and entering in the parameters of whatever we are 'bidding.'
For example, if we want to bid trimming trees off a house... Instead of providing a true estimate, we go to an online estimator, select from a listing of services "Trim Tree 1 ft off home", list it as a 10 ft tree, and hit enter. It spits out our bid for us. It doesn't matter how thick the hanging branches were or how much it costs to dispose of the branches. The site says $70 (I don't remember the amount, just giving an arbitrary number.)
To me, this is already shady. But following this line of example:
A few days later we get a work order. "Go trim tree 1 ft off home for modified bid approval of $35." We have no recourse. If it's truly outrageous, we can refuse to do it, at which point they will get someone else to do it. (I presume.) They are pushing to do away with this, however. We recently received a memo stating that we will no longer be allowed to refuse modified bids.
How is this even a bid anymore? I seriously doubt HUD is modifying everything to below what their blue book says it's worth.
Edit: A seperate example. Much less severe, but to me, still shady. We get a work order, says "provide bid for grass recuts on X property, 15kSq ft lot." We bid $80 (example, again.) We get it Returned, with the comments, "Kindly modify bid to $50." Again, why did you even ask me for a bid in the first place? It's for their investors to look at, like it was a true competative 3rd party bid.. when in fact it was a dictated price.