BID2WIN sues rival over ad claims

A Portsmouth construction bid software firm is suing an Arizona rival over advertising claims.

BID2WIN Software is claiming that Hard Dollar Corp. distorted a Construction Financial Management Association survey to exaggerate its own growth and disparaged BID2WIN’s growth in its advertising, according to a suit filed last week in federal district court in Concord.

The two companies are vying for the No. 2 spot in a three-way race in market share among larger construction firms – usually those with more than $10 million in value.

A third firm, Heavy Construction System Specialists, has the largest market share, with over half the market among the 16 biggest firms ($250 million in value), but its lead is slipping, particularly among mid-sized companies. However, the survey did not give an overall market share figure, instead breaking it down by the size of the firm.

Hard Dollar, according to BID2WIN’s suit, falsely advertised that it grew by 37 basis points. The suit claimed Hard Dollar added the percentages together of different-sized groups, rather than using the hard numbers in each group to figure overall percentage.

“As any intelligent fifth grader can prove, this methodology is unsound and leads to absolutely false, not to mention highly inflated, conclusions regarding Hard Dollars increase in market share,” says the lawsuit.

If the calculations were done correctly, said BID2WIN, HCSS would have a 34.2 market share, a decline of 3 percent, BID2WIN would be No. 2, with a 17.8 percent market share — a 6 percent increase — and Hard Dollar would have a 16 percent market share — a 3.6 percent increase.

Paul McKeon, BID2WIN’s president, said that such marketing is different than mass-market consumer advertising, like Coke and Pepsi.

“It’s not like saying we have the best-tasting ice cream,” McKeon said. “We have a very high-end solution for savvy buyers with IT departments. I hate lawsuits, but this so grossly misstates what was in the survey. After a long history of inappropriate behavior, this is the last resort.”

Hard Dollar did not return calls by NHBR Daily’s deadline. – BOB SANDERS