I let three bids to roof the rental house. I am unsure of the ethics involved.
I had planned to notify the two high bids that they did not have the lowest bid and I would wait two days to accept the low bid if they wanted to lower theirs.
The other response is “Thank you for your bid. It was not the lowest.”
Does anyone have experience with this?
It’s not required that you give a reason, unless you want to negotiate further. You could just say, “I decided to go with another bid (or different option).”
IOW, “Give me your price for a cut-rate job.”
I have extensive experience with this in the public sector. We are required to take the bid of the lowest qualified bidder. (And we do not engage in or promote bidding wars, nor do we allow bidders to alter their bids after the bidding period has closed.)
You as a private homeowner are under no such obligation to take the lowest bid. And I will tell you that the lowest bidder doesn’t necessarily do the best job. (Indeed, some large-scale private owners as a matter of policy automatically throw out the lowest and the highest bidders.)
In your case, I would evaluate all the bids along with how they propose to do the job.
I would not use either of your proposed responses, unless you care for nothing other than getting the job done for as cheaply as possible.
Exactly.
Just pick your favorite and tell the others that you’re going with someone else. The best choice often isn’t the lowest bid.