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Do you let contractors know you're shopping around for bids?
The husband and I are typically DIYers or we work through our neighbors's handyman friends, but we need some major excavation work around our property to repair three large rock walls and install a fourth. Our neighbors have only had to build a small (~2-foot tall) rock wall, but we did get a few contractor names through friends. We've called one to come out and give us a bid next Monday, and I have three other contacts that we're thinking about calling (all four give free bids).
Is it good or bad to mention if we have others coming to offer us bids? We don't want to necessarily manipulate the outcome of their bid, but rather to avoid two showing up at the same time. It would be nice if they offered a lower bid because they know that we're shopping around, but I figure it won't make a huge impact on them one way or another because I'd assume that they already know anyone would shop around. Plus, I typically hear the bid is low-balling the final cost in the end; things tend to come up and then the price comes up, right?
If it makes any difference to know, two of our walls are going to be terraced to avoid making them over four-feet tall, because we'd have to pay to have a structural engineer to sign off them (DH is a structural/mecahnical engineer, but he can't sign off on this sort of project, so he won't hire one out of spite lol). Plus, terraced rock walls are easiler to maintain and afford better opportunity for landscaping work, of which I'm in charge as soon as the walls are finished 
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Cross-posted to Decorating & Renovating in case Friday nights are quiet in here.
Re: Do you let contractors know you're shopping around for bids?
It's always quiet here.
It's fine to say you have other people coming in to give bids.
Our little Irish rose came to us on March 5, 2010
Don't drink the water.
Disclaimer: I am not an MD. Please don't PM me with pregnancy-related questions. Ask your doctor.
I do this sort of work. I always assume that people will get more than one estimate. In fact I encourage them to do so.
Whether someone gets another bid, or a lower bid, doesn't affect MY bid one way or the other- nor should it! I wouldn't trust someone who could counter a lower bid by significantly lowering their original bid; it would make me feel that they hadn't given me an honest bid to begin with, or would be doing a lesser job than they otherwise would have. I'd much rather have a contractor explain their pricing structure and account for differences.
People charge less than me all over town. I know for a fact that I am one of the most expensive people they could call for their landscape needs. This doesn't concern me at all! I don't consider anyone in my city to be an apples-to-apples competitor; people who hire me aren't doing it for price, they're doing it because I have unique qualifications they can't find elsewhere. I am delighted to explain my prices, education, and experience.