HOW TO SUCCEED AT BIDDING & ESTIMATING
mind when bidding on projects : Issue for Construction ( IFC ) Plans , Specifications / General Notes , Preliminary Schedule , and Owner Requirements / Special Instructions .
“ If the IFC plans you get are 80 or 90 percent complete , there is a chance that there could be some change orders or there may be something missing , which is fine for bidding purposes – however , when you are ready to bill it , make sure it ’ s stamped ‘ Issue for Construction ,’” Lowery advised . “ Download all the materials and look at the specifications to see if there are mock-ups you need to do . Also look at the specs on the materials and the general notes that are listed on the plans .”
Jane Olayiwola , Senior Contractor Development Manager with MWIS , said that if you are going to change any terms or conditions for the project – for example , the HVAC equipment , because you don ’ t feel that the listed manufacturer is the right fit for the building usage – copy this into the list of exceptions and clarifications . Make sure you are up front about any items that you are assuming , changing or excluding .
“ Bidding is a process where you are formulating the components of your project and you are using the known details of what you have , such as construction documents and experience , and trying to guesstimate what the unknowns are ,” said Olayiwola . “ Bidding is when a contractor focuses on their scope and compiles a number , a proposal , and sends it to the general contractor ( GC ), and the GC compiles all the proposals across the trades , considers their project requirements , and then will submit the compiled package to the owner .”
Lowery said that contractors also need to understand the three important structural decisions that project owners make which shape construction projects : the Project Delivery Method , a Procurement Method , and a Control Method .
The Project Delivery Method involves Construction Management at Risk ( CMR ), Design-Bid-Build , and Design-Build , while the Procurement Method involves Best Value ( BVS ), Low Bid , Negotiated , Qualifications-Based ( QBS ), and Sole Source ( or Direct Select ). The Contract Type is comprised of Cost Plus Fee , Guaranteed Maximum Price ( GMP ), Lump Sum ( or Fixed Price ), Target Price , and Unit Price .
Estimating is both a science and an art , explained Lowery . It involves both intrinsic and learned skills , as well as a certain amount of risk ; it is the estimator ’ s responsibility to recognize both risks and opportunities , and the estimator must realistically , coherently , and comprehensively evaluate and communicate them .
“ Not every job is the right job for you ,” added Olayiwola . “ You need to carefully review owner requirements and construction documents . The construction
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