I went to see a contractor recently who was concerned that he was under-pricing his contracts. I explained to him that this was common in the industry and that under-pricing the contracts would inevitably lead to losses being incurred on some contracts.
I advised him that he needed to ensure that he had proper controls in place when calculating his contracts, more importantly to ensure that all tenders were independently checked.
Independent checking of tenders will ensure that any under-pricing is picked up.
If you are a contractor and you are concerned about under-pricing of your contracts, call Green and Peter on 020 8446 8100.