Is This The Year That The Contract Business Collapses?

**Bad Robot** · January 10th, 2012, 10:07 PM

Many of you know I am not a fan of the contract side of things. In the Midwest things have sunk so low, that I really do not see how anyone attached to a contract firm will be able to say for certain that their team will be able to wade through this season like they did in 2011. Any thoughts my fellow locators?

**Mke** · January 11th, 2012, 09:33 AM

Unfortunately I don't think this will be the year the contract locating side will go belly up. There is too many utilities that rely on the cheap labor and the ability for the contractors to take all the liability for the whole contract side of things to go belly up.

If all goes well, maybe we will have some new state laws to help make contract locating a bit more manageable (more on regulating ticket size and the way contractors call in tickets). The contract locating firms still have some things they can cut before they really start shutting the doors or bidding contracts at a higher rate to cover costs.

I see things getting rough for these companies in about 5yrs. It could be as soon as two, but more realisticly 5. That leaves a few more years of it being miserable. In that time you should have some new comers into the area that may pop wages up a buck more then your making now. Then they will lose the contract and if your lucky the old company will hire you back without any headaches.

I know it sounds negative, but compared to my 20yr outlook its rosey =)

Only if we can make it past the zombie apocalypse.

Mke

**ProfessionalLocator** · January 11th, 2012, 05:51 PM

Not this year, not two years and probably not in five years.

The client companies have shown themselves unable to leave behind out sourcing their locating responsibilities.

Watch for a contract firm dong really poor quality work by underbidding the contract. Watch for a person(s) to be badly injured or killed by such poor work. Watch for a tort attorney to show in court the client company knew of the poor quality work but allowed it to happen becasue they refused to spend the money needed to pay for the level of quality the law demands of them.

When a client company loses a big lawsuit, called piercing a corporate shield, such as above all the client companies will then have the motivation to pay more for locating. This is becasue it also provides the client companies with justification to present to the rate board, all states have to approve rates and increases, for not accepting the lowest bid.

Such an event would pump life into the contract locating industry.

**RD_Wrangler** · January 13th, 2012, 03:52 AM

Originally Posted by Mke

I know it sounds negative, but compared to my 20yr outlook its rosey =)

Only if we can make it past the zombie apocalypse.

Mke

Not too worried about zombies, but if things DO get nasty, you're welcome to head East. Portland isn't the place I would choose to be if the SHTF. Bring food and a gun.