Illegal Subcontracting

There was a great article written about illegal subcontracting. Read it here: Article

Over the last several months I have watched bids where we were within $50 of other reputable companies per month and then other large companies get awarded the bid at a rate 40% below our price. That is below my cost.

The article explains this practice much better than I am able to do. It explains to me how these bids are even possible. When I bid $700 a month and lose to someone at $445 it makes me wonder if they are subcontracting illegally. This particular company is larger than us, so I know they have larger overhead. How can they bid like that?

In the end, I know those of us who operate legitimately, with professionalism and ethics, will overcome these challenges. I know the long-term relationships we have built with our customers help protect us from the low-balling competitors. When something seems too good to be true, it usually is. 

My people employees are employees. We do not have independent contractors or subcontractors. Period. 

Truly an eye-opening experience to realize just how low some people will go.