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Do we need to provide our Labor and Material Costs for a project

MichiganConstruction Contract

We are getting ready to sign a contract for concrete work with our General Contractor. They asked us to send our Schedule of Values per building. We sent but now they want our Labor and Material costs. Seems odd-we've never been asked to disclose this information before. Is that a requirement? By the way, we are in Michigan if that matters. Thanks a million!

6 replies

May 1, 2020
The GC is probably trying to verify that your SOV numbers are realistic. Some GCs like to take a deeper dive into a sub's pricing to be comfortable that the sub can actually do the job for the bid price without repeatedly asking for change orders later on. Nobody has much extra money laying around these days, which is probably why you're getting this request for the first time. Feel free to call or email me if you'd like to discuss further.
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May 1, 2020
Thank you Thomas for your input. We are a small company and provided a competitive bid. We are uncomfortable to give them our labor and material costs. If there was additional work or changes on the job we would have to request a Change Order-which has been standard with other large GC's we work for. The owner of our company wants to decline providing this information. Do you have a recommendation how we go about that? We appreciate your guidance. Thank you!
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May 1, 2020
If you'd like to discuss this further, please call my office at 248-373-3700.
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May 1, 2020
Thank you for your question. In private contracts, which this appears to be, the General Contractor is allowed to test the bids they are receiving. Sometimes unscrupulous General Contractors will ask for that level of detail only to turn around and do it themselves with the specs you have provided, but there is no real way to tell ahead of time, unless you are able to ask around about their reputation. It is completely your option of whether or not you submit the labor and material costs, but if you do not, there is a greater likelihood you will not be awarded the bid. If you have any other questions please feel free to call my firm, Willis Law, at 800-610-6938. Thanks.
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May 1, 2020
Thank You Shaun! Your input was valuable, Thank you for your prompt response. We ended up providing the information they requested. It will be interesting on how it turns out. Thank You, Dawnaree
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May 4, 2020
I am not aware of any legal requirement for a contractor to disclose its labor and materials costs.
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