5 Bros: Bid approved for Reduced Amount! (Yea! Hoo Ray!) - REO Property Preservation Forum
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post #1 of 24 (permalink) Old 12-13-2014, 12:56 AM Thread Starter
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Wink 5 Bros: Bid approved for Reduced Amount! (Yea! Hoo Ray!)

I can laugh now, but this happened to us this past year. I saw a little issue when I drove up to a nicer home. It was a HUD home with a brick front, lots of room, nice basement, etc. But it had a column of bricks falling down. Literally in the process of falling over... Literally hanging by a wire... So I tried to bid to do the repairs. I called around some brick masons... found some who admitted that $1500 would be justifiable even for such a small job, and so I bid it well north of $2k.

I got it approved! Yeah for me. Even found a guy who would do it pretty cheap around this time. But when I had looked around to categorize this type of damage, I had selected "siding" repair (nothing else fit into their stupid computer system). Well, there must be some kind of square foot price guidelines for "siding"... and the adjusted price was... less than 10% of what I bid. Yea!! So I told them no, no way, you better try again, no.

As far as I know, some really clueless sub may have done it for peanuts. All I know, is not me. While I can believe someone else got the bid and they were all up in arms about mine, there is no way a professional mason did it for the price they approved it for. I hope it stays fixed.... I hope he doesn't get a call back no charge order.

By the way, when I tell them that they can't lower my bids, they claim that it is their client (HUD, FHA, etc) that does it. Yeah, ok.

(I do work for the 5 Amigos)
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post #2 of 24 (permalink) Old 12-13-2014, 09:28 AM
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Sounds like something a structural engineer should look at. Be careful with damages like this and how you report them to your clients. Something that appears as a little cosmetic issue could be indication of major structural/foundation issues. I know of one contractor who is out many thousands for overlooking "structural damages" on an initial visit.
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post #3 of 24 (permalink) Old 12-13-2014, 11:22 PM
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Originally Posted by Natasha View Post
I can laugh now, but this happened to us this past year. I saw a little issue when I drove up to a nicer home. It was a HUD home with a brick front, lots of room, nice basement, etc. But it had a column of bricks falling down. Literally in the process of falling over... Literally hanging by a wire... So I tried to bid to do the repairs. I called around some brick masons... found some who admitted that $1500 would be justifiable even for such a small job, and so I bid it well north of $2k.

I got it approved! Yeah for me. Even found a guy who would do it pretty cheap around this time. But when I had looked around to categorize this type of damage, I had selected "siding" repair (nothing else fit into their stupid computer system). Well, there must be some kind of square foot price guidelines for "siding"... and the adjusted price was... less than 10% of what I bid. Yea!! So I told them no, no way, you better try again, no.

As far as I know, some really clueless sub may have done it for peanuts. All I know, is not me. While I can believe someone else got the bid and they were all up in arms about mine, there is no way a professional mason did it for the price they approved it for. I hope it stays fixed.... I hope he doesn't get a call back no charge order.

By the way, when I tell them that they can't lower my bids, they claim that it is their client (HUD, FHA, etc) that does it. Yeah, ok.
I said it once again that HUD can lower pricing, they have data base of the bids related to the property with information on what was provided in each bid, name of the person who submitted and status of the bid. They will more likely deny bid if it's higher than their pricing (which makes no sense whats so ever). this is why the bid should be descriptive. The procedure after HUD adjustment is for regional go to bank and have bank cover the difference or ask for approval if HUD denies or send appeal to HUD whichever works the best. We had been through this many times and it's a joke. Regionals don't want to do it and they will try to push it on you especially if it's between city and HUD where you have to be middle man between the two and tell each party what the other party thinks should be the right way. We had some bids partially denied by HUD that were related to violations and we had been asked to have city sign off on the repairs. We were like WHAT?
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post #4 of 24 (permalink) Old 12-14-2014, 05:27 AM
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Have you ever received an actual HUD letterhead document stating this?
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post #5 of 24 (permalink) Old 12-14-2014, 07:11 AM
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Have you ever received an actual HUD letterhead document stating this?
I have only on violations doing major repairs. Had one doing a Siding asbestos abatement because Hud said siding can't contain asbestos.

I have had maybe 20 but they always send it before the bid has been approved. The regional s cutting your bid after it's approved is them looking for ways to increase profits
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post #6 of 24 (permalink) Old 12-14-2014, 08:08 AM
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post #7 of 24 (permalink) Old 12-14-2014, 10:49 AM
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I have only on violations doing major repairs. Had one doing a Siding asbestos abatement because Hud said siding can't contain asbestos.

I have had maybe 20 but they always send it before the bid has been approved. The regional s cutting your bid after it's approved is them looking for ways to increase profits
No, HUD didn't cut the bid. Your client adjusted/negotiated with HUD and they changed your bid. Your client pulled out "HUD adjusted the bid" crap and sent it back.

I do agree with "cut your bid" is another way they use to increase profits.



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post #8 of 24 (permalink) Old 12-14-2014, 11:34 AM
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I have first hand knowledge of some of those practices. One example I'm sure others here have experienced is being asked by 5B for a second "true" bid on a project you submitted the first bid on. Trying to manipulate bids and masking them under their own letterhead was at the very least unethical.
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post #9 of 24 (permalink) Old 12-14-2014, 11:35 AM
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I asked if anyone had ever received a letter from HUD with verbage dictating a bid adjustment, knowing that no one has, because it has never happened as the Nationals describe it.
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post #10 of 24 (permalink) Old 12-14-2014, 01:39 PM
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About a year ago I bid approx 55 cyd on a job. They came back and said "hud" cut it to 35, I told them to let "huds" people do it then.... A week later "hud" accepted my initial bid.
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