What's your response to collusion in the construction industry?

Construction tends to be an industry dominated by Conservatives. They often complain that prevailing wage laws "force" prices up, but even if construction workers all made $50,000 per year (which they don't) it still wouldn't justify the bid prices being put in by construction companies. A few examples: ...New York: a 600 sf media storage building. No bathrooms or plumbing, electrical and HVAC only. Lowest bid on the contract: $580,000 Bids were rejected and the town decided to do without the structure ...New York: installing sprinkler system, ADA compliant bathrooms, exit signage and doors and an 8 space parking area in a home which was donated to a public library. Lowest bid on the contract: $1,450,000. Bids were rejected and the town returned the property to the donor who then sold it. ...New York. 1200 sf addition to a public library for a Senior Center, where an organization of local seniors could hold bridge tournaments and meetings of various senior groups. Local seniors figured that a budget of $300 per sf for construction would be more than adequate and worked with library personnel to raise $360,000 to pay for the construction. Lowest bid on the contract $1,445,000 (That's $1204.16 per square foot of construction) What's your response to Conservatives in the construction industry who charge prices for construction that are absolutely ridiculous, then try to complain it's because they have to pay $22.50 an hour for a painter, or $32.50 an hour for a journeyman electrician, when any rational person can clearly see that their labor costs on these contracts are often well under 4% of the amounts bid? Also, when I say "New York", I'm not referring to New York City, where these prices would be considered normal. i'm talking about rural towns in upstate, NY. The part that's confounding is that construction companies complain about regulations on public projects when they're clearly making money hand over fist, and the prices being charged would make Boss Tweed blush.

Asked By: - 1/5/2013
Best Answer - Chosen by Asker
I guess you've never worked in the Construction Industry... More
Answered By: dakotaviper - 1/5/2013
Additional Answers (2)
Buyers look for the lowest price. Sellers look for the highest price. What part of this confounds you so?
Answered By: Psychobenzaprine - 1/5/2013
They know how to build it and how much it costs. Competiton keeps them as close to honest as possible. I'm more concerned about people who prefer to disassemble buildings and bridges, than construction.
Answered By: towwwdothello - 1/5/2013
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