Contract to demolish 30 Ohio homes let at 40% less than previous asking price.
There are some websites and publications that will have you believe that low pricing and bid undercutting is just “one of those things” that we all have to put up with.
Not around here we don’t. We have just one interest when it comes to demolition contract pricing – That the demolition contractor earns a fair day’s wages for a fair day’s work. Which is why this story from Warren, Ohio leapt off the page at us.
Holton Inc. of Lordstown was awarded a $75,000 bid for 30 demolitions, equivalent to $2,500 per house. Mayor Michael O’Brien said five years ago, the lowest bids were $4,300 per house.
To save you doing the maths, that’s a drop of over 40%, and our guess is that most of that price drop has come in the past 12 months.
The city plans to demolish between 250 and 300 homes with a portion of its NSP grant, which requires some of the funding to be used for redevelopment. The city is bidding the demolitions in bundles of 25, but Community Development Director Michael Keys said 30 were chosen for the first round to kick off the program.
And to save you doingt he maths again, that’s $450,000 that’s staying in local authority coffers and not going to demolition companies and their workers.
Click here for further details.
