Economy Wiring Company Inc

CustomerA bid is a set price for a contracted service. It is in contrast to doing the work time and material. In a bid project a price is agreed upon for completion of work, regardless of how long the work takes. Whether it takes an hour or ten hours the customer pays the agreed price. The...

alternative to this is a time and material job. Our rates are $150 for the service call fee which includes the first half an hour of labor followed by $99 per man per hour for every hour thereafter. In this instance, the customer is responsible for the hours worked and costs may be higher than a bid but they may also be lower. Time and material is charged when we have no way of knowing exactly how long a project will take. Bids are given when we can be reasonably sure the length of time and cost necessary to complete a project. In the situation at hand, a bid was submitted to complete the project, removing electrical metering equipment from the customer’s house. On average these projects take approximately 4-5 hours to complete which would equate to around $600 before tax. However, they may take longer than this leading to greater costs. That is why we submitted a bid for the project to guarantee that the customer would not be charged should the project be more complicated than it initially appeared. Upon starting the project and dissembling the meter, it was found to be significantly less corroded than is common. There was no way for us to discover this before starting work or giving the bid. As the meter was less corroded than is normal, our electrician was able to complete the project quicker than anticipated. Ultimately, a service was contracted and agreed to here. The customer agreed to our price for removing the electric meter from their property and we completed the work. There is no dispute here about our quality of work. It is unfortunate that one of our employees didn’t explain the difference between bid work and time and material adequately. It is also unfortunate that he may have made unsatisfactory comments. We would like to extend our sincerest apologizes for these issues. Respectfully,-Jay S[redacted]PresidentEconomy Wiring, Co. Inc.