akforme
05-02-2010, 12:02 AM
I have a buddy who's family owns a contracting company. They do mostly roads and for the last decade they buy their gravel from these two companies. Well this last year they got an offer to buy a different gravel pit which would save them a ton so they investigated it. They had the borough inspect it and they were told with the right permits they could use it.
After buying it and completing all the permits they were told that since their competitors land was valued higher it was unfair so they couldn't use it unless they agreed to pay the same property taxes (which was like 10K more) so they paid it.
Well they got their first contract 3 weeks ago and in the contract it specifically states they can only use the other 2 gravel companies to complete the bid. He appealed it and they had that hearing yesterday and they borough decided they didn't think they should be allowed to compete against existing companies and so they can't use his gravel on any government jobs. They also won't let them raise the bid even tho it was based on a cheaper gravel price.
They were told off the record that the state stepped in. The other two companies have political connections with the state and what happened is they bitched about the extra tax he paid saying it was a pay off so the state put pressure on the borough not to use that gravel because of it.
So they are out almost a mil and their main job this summer will end up being a wash since the extra gravel price will eat up most of their profits.. Gotta love the government.
After buying it and completing all the permits they were told that since their competitors land was valued higher it was unfair so they couldn't use it unless they agreed to pay the same property taxes (which was like 10K more) so they paid it.
Well they got their first contract 3 weeks ago and in the contract it specifically states they can only use the other 2 gravel companies to complete the bid. He appealed it and they had that hearing yesterday and they borough decided they didn't think they should be allowed to compete against existing companies and so they can't use his gravel on any government jobs. They also won't let them raise the bid even tho it was based on a cheaper gravel price.
They were told off the record that the state stepped in. The other two companies have political connections with the state and what happened is they bitched about the extra tax he paid saying it was a pay off so the state put pressure on the borough not to use that gravel because of it.
So they are out almost a mil and their main job this summer will end up being a wash since the extra gravel price will eat up most of their profits.. Gotta love the government.