BIDDING BASICS Reference Booklet

8/9/2019 BIDDING BASICS Reference Booklet

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BASICS OF BIDDING

DEFINITIONS:bid package = drawings (architectural, structural, mechanical electrical plans anddetails! plus the pr"#ect manualc"nstructi"n = assemblage "$ a %ariet& "$ materials in "rder t" bring ab"ut anarchitectural "r engineering design'c"nstructi"n bid = an "$$er t" per$"rm speci$ic w"rk $"r a speci$ied price'g""d bid =

submitted b& a reputable and dependable c"ntract"r

n" "mitted items

accurate uantities and price)"uts

realistic c"mpleti"n time all"wances

practical meth"ds planned $"r an& pr"blem items

appr"priate markup

pr"perl& e*ecuted bid $"rms with b"nd, insurance and alternati%e bids'

price = am"unt "$ c"mpensati"n $"r the c"ntract"r+s lab"r, material, euipment and

pr"$it'pr"#ect manual= b""k c"nsisting "$:

in%itati"n t" bid

reuirements

instructi"ns t" bidders

bid $"rms

b"nd $"rms

e*perience uali$icati"n $"rms

c"ntract $"rm (the agreement!

standard clauses

lab"r law

miscellane"us laws, rules regulati"ns

ta*es, permits, licenses inspecti"ns

general and special c"nditi"ns

en%ir"nmental pr"tecti"n

temp"rar& $acilities and utilities

technical specs pertaining t" trades and subc"ntract"rs

take "$$ = the acti%it& "$ determining uantities $r"m drawings and speci$icati"ns

ENE-./ 0IDDIN ST-.TEIES

E%er&"ne wants t" pr"duce the l"w bid, win the c"ntract and take resp"nsibilit& $"r

c"nstructi"n' The g"al is t" d" the w"rk and make m"ne& in the pr"cess' There are tw"wa&s t" l""k at bidding and bidding strateg&' The 1sh"rt %iew2 "r 1get the c"ntract $irst andw"rr& ab"ut the details later2 is $"r ine*perienced bidders' S"me details cann"t be $"reseen"r planned and must rel& "n $ield decisi"ns, but this sh"uld be the e*cepti"n and n"t the rulewhen bidding' .n e*pert bidder will tr& t" use the l"ng run strateg& "$ inc"rp"rating l"ng)range planning int" the details "$ the bid as earl& in the pr"cess as p"ssible'

Elizabeth Bowers All Rights Reserved 1



I34O-T.NT ITE3S IN . OOD 0IDDIN ST-.TE5

Job Site Walk-Through

D" n"t miss the "pp"rtunit& t" g" "n a walk)thr"ugh' .$ter the bid d"cuments ha%e beenre%iewed and &"u ha%e a general idea "$ the nature "$ the pr"#ect, &"u sh"uld arrange a %isit

t" the site "$ c"nstructi"n' 5"u ma& e%en want t" d" a preliminar& take)"$$ be$"re the site%isit' 6hen &"u g" $"r the #"b)site walk)thr"ugh, be sure t" make n"tes and ask $"ll"w upuesti"ns, submitting them t" the architect, general c"ntract"r "r "wner "$ the pr"#ect be$"re&"u submit &"ur bid' 5"ur in%estigati"n "$ the site and its c"nditi"ns can make a di$$erence in&"ur bid and whether &"u can make m"ne& at the price &"u u"te' The walk)thr"ugh gi%es&"u the "pp"rtunit& t" c"mpare the bid d"cuments t" the actual site' 3ake n"te "$ an&di$$erences between the c"ntract d"cuments and the actual site c"nditi"ns and get themclari$ied b& the general c"ntract"r, architect "r "wner pri"r t" submitting &"ur bid 5"u willacuire additi"nal in$"rmati"n &"u ma& need later' 5"ur perspecti%e "n space anddimensi"ns is heightened as &"u can de%el"p a better $eel $"r the w"rk &"u are bidding "n' 'I$ &"u cann"t get a su$$icient answer, uali$& what &"ur bid is based up"n'5"u sh"uld l""k at the $"ll"wing:

distance $r"m &"ur c"mpan& "$$ices distance $r"m suppliers and subc"ntract"rs

w"rking r""m 7 h"w c"ngested will the site be8

euipment a%ailabilit&

s"urce "$ water

s"urce "$ p"wer

en%ir"nmental issues

s"il c"nditi"ns

sa$et& issues 7 will &"u need $lagmen, barricades, etc'8

securit& issues

ease in getting materials in and "ut "$ the #"bsite

a%ailabilit& "$ secure st"rage "n site parking

3ake a check sheet s" that &"u d" n"t $"rget what &"u will be l""king $"r "n a #"b site' Thischeck sheet sh"uld be inclusi%e en"ugh s" that &"u can use it "%er and "%er again "n%ari"us pr"#ects' It is a g""d idea t" ph"t"graph the site as &"u walk thr"ugh it t" #"g &"urmem"r& as t" a certain c"nditi"n' N"t e%er& item will be checked $"r e%er& walk)thr"ugh'See Example 1

Bid Package

9are$ul re%iew "$ the bid d"cuments "r bid package is essential in submitting a resp"nsible,c"mprehensi%e bid' Each bidder sh"uld care$ull& e*amine these d"cuments and d"

appr"priate take)"$$s' N"te the scale indicated "n the drawings and the details' 9are sh"uldbe taken when measuring dimensi"ns and c"unting material uantities' 5et, there are "therc"nsiderati"ns that when taken int" acc"unt c"uld a$$ect the bid and whether &"u will makem"ne& when &"u per$"rm the c"ntract as &"u d" the w"rk' The 0id 4ackage is made up "$the drawings and the pr"#ect manual' 6e will discuss the pr"#ect manual ne*t'




Project a!ual

The 4r"#ect 3anual is als" kn"wn as the Speci$icati"ns 0""k "r 1Spec 0""k2' In re%iewingthe spec b""k, an"ther check list will help &"u c"%er all the imp"rtant items that &"u sh"uldbe l""king $"r' .gain, n"t all items will be checked $"r all pr"#ects'

It is suggested that the speci$icati"ns in the 4r"#ect 3anual be re%iewed $irst' .$ter the specsha%e been re%iewed and n"tes taken, attenti"n sh"uld then $"cus "n the drawings' Stud&ingthe specs $irst can direct &"ur attenti"n in what t" l""k $"r when &"u re%iew the drawings'"we%er, e%er&"ne has their "wn wa& "$ d"ing things and whate%er wa& w"rks best $"r &"uis the meth"d &"u sh"uld use' 3ake n"te "$ an& discrepancies between the 4r"#ect 3anualand the drawings and get them clari$ied be$"re submitting &"ur bid'

Sco"e o# Work$ E%er&"ne g"es t" the part "$ the spec b""k that c"%ers their particularsc"pe "$ w"rk' This part is imp"rtant, "$ c"urse, but it is n"t the "nl& secti"n that will in$luence&"ur bid' 9are$ull& re%iew the sc"pe "$ w"rk pa&ing particular attenti"n that &"u "nl& bid "nthe w"rk relati%e t" &"ur "wn sc"pe "$ w"rk'

Ge!eral Co!ditio!%: 9are$ul attenti"n sh"uld be paid t" the eneral 9"nditi"ns' Therema& be c"sts ass"ciated with c"n$"rming t" the eneral 9"nditi"ns in the spec b""k'Inattenti"n t" the c"sts related t" the eneral 9"nditi"ns will cut int", "r p"ssibl& eliminate,&"ur pr"$it when &"u ha%e t" c"mpl& with them as part "$ &"ur c"ntract'

I!%tructio!% to Bidder%$ Ign"re this secti"n at &"ur peril' Imp"rtant detailed in$"rmati"n isincluded in these instructi"ns' I$ &"u are n"t bidding as the eneral 9"ntract"r, &"u will stillbe held t" the de$initi"ns, interpretati"ns, rules and pr"cedures that are enumerated in thissecti"n "$ the pr"#ect manual' Special attenti"n sh"uld be gi%en t" the $"rmalities "$ date,time and place "$ the bid "pening' Note$ I$ &"u are bidding as a sub)c"ntract"r, thec"ntract"r &"u are gi%ing &"ur u"te "r bid t" needs en"ugh time t" inc"rp"rate &"ur u"teint" his bid'

I!#or&atio! A'ailable to Bidder%$ This secti"n has instructi"ns "n h"w t" get e*train$"rmati"n that &"u ma& need "r $ind use$ul' En%ir"nmental research that &"u either c"uldn"t "btain "n &"ur "wn "r w"uld be t"" e*pensi%e t" "btain "n &"ur "wn is an e*ample "$ thet&pe "$ in$"rmati"n that is a%ailable t" bidders $r"m the "wner "r architect' -ep"rts "n c"resampling w"uld ha%e imp"rtant in$"rmati"n t" an&"ne d"ing in)the)gr"und w"rk'

Wage (ate$ I$ the pr"#ect is $unded b& the g"%ernment, n"te what wage rates &"u will needt" pa& &"ur empl"&ees and what m"nthl& paperw"rk might be reuired'

Bid For&%$ The "rgani;ati"n accepting the bids will e*pect &"u t" use the $"rms the& putint" the spec b""k' This makes the task "$ "pening and rec"rding bids easier and $airer t"

the "wner as well as all th"se submitting bids' I$ &"u are a subc"ntract"r, &"u sh"uld discusswith the general c"ntract"r h"w he might like t" ha%e a bid br"ken d"wn' D"n+t assume thatthe& want t" see in$"rmati"n presented in the same wa& &"u want t" present it'

Adde!da$ 4r"#ect 3anuals are "$ten written with c"rrecti"ns and additi"nal in$"rmati"n putint" the addenda "$ the b""k' It ma& c"ntain uesti"ns and answers $r"m earlier meetingsthat were added at the last minute be$"re printing' This in$"rmati"n has been added $"r areas"n and is imp"rtant' It ma& ha%e been t"" di$$icult t" add it b& rewriting the wh"le b""k




s" it was added at the end' Instructi"ns in the addenda will indicate where the in$"rmati"napplies'

S"ecial Co!ditio!%$ Take n"te "$ an& special c"nditi"ns n"ted in the pr"#ect manual thatma& a$$ect &"ur w"rking h"urs, the d"cumentati"n &"u need t" pr"%ide, and an&thing elsethat might a$$ect &"ur price' 3an& pr"#ects are being bid n"w that $"ll"w the <S09 /EED

uidelines' 5"u need t" understand h"w this might a$$ect &"ur sc"pe "$ w"rk such as thematerials &"u might need t" use, seuences &"u might need t" $"ll"w and d"cumentati"n&"u might need t" pr"%ide' I$ &"u are un$amiliar with an& "$ the termin"l"g& in the 4r"#ect3anual, get it clari$ied pri"r t" submitting &"ur bid'

Pa)&e!t Ter&%$ <nderstand what the pa&ment terms are t" the general c"ntract"r' I$ &"uare bidding as the general, understand what &"u need t" submit t" get pa&ment and what thetime$rame is between submitting &"ur in%"ice and getting paid' 3"st pr"#ects pa& m"nthl&'5"u might need t" carr& >?)@A da&s between the time &"u submit &"ur in%"ice and when &"urecei%e pa&ment' <nderstand these terms pri"r t" submitting &"ur bid'

.n"ther $"rm "$ .ddenda is Bid Bulleti!%' This is als" in$"rmati"n that came t" light a$ter

the 4r"#ect 3anual was c"mpiled' 0id 0ulletins als" c"ntain imp"rtant, pertinent in$"rmati"n'

*ue%tio!%$ I$ &"u ha%e an& uesti"ns ab"ut an& part "$ the bid d"cuments "r the pre)bidmeeting &"u attended, ask a clari$&ing uesti"n and submit the uesti"n t" the c"ntactpers"n in writing' I$ &"u think &"u will ha%e se%eral uesti"ns, make a *uer) +i%t, Theuer& list is a c"mpilati"n "$ &"ur uesti"ns and sh"uld be submitted all at "ne time' It will bem"re e$$icient $"r &"u and the pers"n answering &"ur uesti"ns' 0e sure that &"u ask &"uruesti"ns well in ad%ance "$ the deadline $"r asking uesti"ns' Buesti"ns and the answersare distributed t" all the bidders s" that e%er&"ne is "n the same $""ting' In "rder t" get thein$"rmati"n "ut t" e%er&"ne, a deadline $"r uesti"ns is established as part "$ the biddingpr"cess'

%ti&ate Work%heet or Take-O## Sheet$ Detailed in$"rmati"n sh"uld be gathered $irst "n ageneral spreadsheet and then a separate spreadsheet sh"uld be used t" prepare asummar&' This will help t" "rgani;e the in$"rmati"n and make preparing the bid easier' Thedetail sheet sh"uld be br"ken d"wn b& categ"ries "$ w"rk and material with space $"r thec"sts "$ each, lea%ing r""m $"r t"tals' The summar& w"rksheet will ha%e the t"tals "nl&,labeled b& categ"ries in the sc"pe "$ w"rk' See Example 2

ALL OF THE DETAILS OF AN ESTIMATE ARE TOO NUMEROUS FOR THIS WORKSHOP AND ARE NOT INCLUDED HERE.




4.9C.IN TE 0ID

.$ter &"u ha%e re%iewed all the bidding d"cuments, the bid $"rms, bid b"nd (i$ reuired!, theinstructi"ns regarding the $"rmalities and ha%e c"mpleted all &"ur estimati"n $igures including"%erhead and pr"$it, &"u are read& t" c"mpile &"ur bid' This is an"ther time where a checklistc"uld be help$ul t" the bidder in preparing the bid' The checklist sh"uld include all items that

must be c"mpleted during the entire estimating pr"cess' This ensures that e%er&thing isacc"unted $"r and the bid can be submitted c"rrectl& and "n time' This is an eas& wa& t"keep track "$ the details "$ bid submissi"n as stipulated in the bid d"cuments' -e%iew &"ursite n"tes, sketches and ph"t"graphs "ne m"re time t" see i$ an&thing #"gs &"ur mem"r&'

Bid Prici!g

The bid $"rm supplied t" the subc"ntract"r with the plans and speci$icati"ns ma& ask $"r "ne"r m"re $"rms "$ bids: /ump Sum bid, a <nit 4rice bid "r a 0reakd"wn "$ 3aterials, /ab"rand Euipment bid' The general c"ntract"r will ha%e similar reuirements $"r his bidsubmissi"n' The general c"ntract"r ma& als" be reuired t" submit a list "$ p"tentialsubc"ntract"rs that ha%e tendered acceptable bids' 0e sure t" $"ll"w the instructi"ns s" that

&"ur bid is c"nsidered acceptable' N"te h"w the general might want pricing br"ken "ut' .ls",be sure t" n"te what speci$ic packages &"u might be bidding' The general might want t" seeseparate pricing $"r dr&wall, $raming, d""rs, ceilings and hardware' <nderstand this be$"re&"u present &"ur bid' <nderstand what the general wants &"u t" include and what he mightwant e*cluded $r"m each package' I$ &"u include t"" much, &"u might n"t get the pr"#ect'T"" little, and &"u might $ind &"ursel$ $inanciall& resp"nsible $"r it during the pr"#ect'

+u&" Su& Prici!g$ This is the m"st c"mm"n reuest $"r a bid' The bidder estimates thec"sts $"r lab"r, material, euipment, "%erhead, pr"$it, b"nds, permits, insurance, $ees andta*es and t"tals them int" a lump sum $igure and submits it as a price $"r d"ing the w"rk' I$&"u ha%e de%el"ped a g""d w"rking relati"nship with a general c"ntract"r, &"u can "$$er c"stsa%ings suggesti"ns t" him t" help &"u get an edge' These are kn"wn as alternates and

must be stated as such' .lwa&s price &"ur w"rk 1per plans and speci$icati"ns2' .lternates canbe a wa& t" help &"u get the pr"#ect and de%el"p a g""d w"rking relati"nship with a generalc"ntract"r' E%er&"ne is alwa&s l""king $"r the idea that helps them get the #"b' This is where&"ur e*perience reall& helps'

.!it Prici!g$ The u"ted estimati"n "$ the price "$ units that will g" int" c"nstructi"n "$ thesc"pe "$ w"rk is unit pricing' <suall& the unit price is added t" the lump sum bid $"rre$erence purp"ses' The "wner ma& reuest that the unit c"st be added s" that, sh"uld an&additi"ns "r deleti"ns t" the w"rk "ccur, the price can alread& be n"ted and a price be put "nw"rk "rder, change "rder "r addendum' The pr"cess "$ appl&ing these unit prices %aries$r"m c"ntract t" c"ntract, but details ab"ut h"w the unit prices are t" be used "n the pr"#ectwill usuall& be $"und in the supplementar& c"nditi"ns "$ the c"ntract d"cuments'

.n"ther reas"n $"r a unit price estimate is that the general c"ntract"r can use it t" c"mpareaccurac& between subc"ntract"r u"tes' I$ the lump sum prices are similar, but the unitprices are di$$erent, then "ne "$ the subc"ntract"rs ma& ha%e made an err"r in his u"te'

.n& uesti"ns ab"ut a bid "r u"te must be answered be$"re a bid is accepted'




Bid Co'er Sheet

The bid c"%er sheet d"es n"t ha%e the breakd"wn "$ c"sts "n it but d"es ha%e all the basicgeneral in$"rmati"n reuired "n the bid $"rm' The e*ample "$$ered in this w"rksh"p is similart" the bid $"rms issued in man& l"cal bid d"cument sets' See Example 3

The Bid For&

The bid which is "$ten called the tender is s"metimes submitted "n a $"rm "$ the c"ntract"r+s"r the "wner+s ch""sing' In an& case, it usuall& c"ntains the $"ll"wing in$"rmati"n:

' The name and address "$ the pr"#ect' The identit& "$ the "wner >' The identit& "$ the bidding c"ntract"r @' . descripti"n "$ the w"rk t" be d"neA' . list "$ the bid d"cuments' . list "$ the addendaG' The bid priceH' The durati"n "r c"mpleti"n date "$ the pr"#ect

' Signatures "$ the bidders "r c"rp"rate "$$icer i$ the c"mpan& is inc"rp"rated?' The time, date and place "$ the bid'' .lternates "r unit prices reuired b& the bid d"cuments

Either "n the bid $"rm "r in a letter, the bidding c"ntract"r must declare that the bidderagrees t" h"ld the bid "pen $"r acceptance b& the "wner at the price speci$ied $"r a peri"d "$time (usuall& ? da&s! and that the bidder will c"mpl& with all "ther bid reuirements'

NOTE:9"mpiling a bid can be a c"mplicated task, but i$ &"u d" &"ur h"mew"rk and take care t"re%iew all the d"cuments, gather all the in$"rmati"n &"u ma& need and pa& attenti"n t"details, it can be a success$ul pr"cess' This in$"rmati"n c"ntained in these pages is "nl& an"%er%iew "$ the in$"rmati"n &"u will ultimatel& need'

Sugge%ted (eadi!g$ The%e book% &a) be a'ailable at )our local librar), 5"u ma& wantt" purchase an& "r all "$ these b""ks'

0asic Estimating $"r 9"nstructi"n b& James .' S' Fat;ingerK published b& 4rentice allIS0N ?)>)AHG)?

Fundamentals "$ 9"nstructi"n Estimating b& Da%id 4rattK published b& Delmar 4ublishersIS0N ?)HG>)>A)

0idding $"r 9"ntract"rs: How to Make Bids that Make Moe! b& 4aul J' 9""kK published b&-S 3eansK IS0N)?: ?HGG?H

3eans Estimating andb""k published b& -S 3eans 93D r"up IS0N ?)HG)GG)

4lan -eading 3aterial Take"$$ b& 6a&ne J' Del4ic"K published b& -S 3eans 93D r"upIS0N ?)HG)>@H)H




SITE LISIT 9E9C /IST

4r"#ect Date "$ %isit:

.ddress

Distance $r"m business

eneral weather c"nditi"ns

.ccess r"ads

Site c"nditi"ns

.d#acent Structures

Obstructi"ns

S"il data

S"ils rep"rt a%ailable8 Fr"m:

6ater a%ailable Electric a%ailable

Teleph"ne ser%ice SewageM4"rta#"hns

arbageMDumpsters as

4arking and St"rage

S"il disp"sal:

9"ntaminati"n

Site ist"r&

Other 9"mments:

Elizabeth Bowers All Rights Reserved

E*ample

7



ESTI3.TIN 6O-CSEET E*ample

J"b 4age

Date Estimated b&De%cri"tio! *t) .!it aterial% .!it Price +abor Total




.93E 9ONST-<9TION

Date 0id

4r"#ect

4r"#ect .ddress

Owner

9"ntact 4ers"n 4h"ne

Owner .ddress

0IDDIN

Di%isi"n(s! Secti"ns

Summar& "$ 6"rk

.ddendum n"ted

0ase 0id Special In$"rmati"n: ./TE-N.TE

./TE-N.TE

./TE-N.TE >

./TE-N.TE @

./TE-N.TE A

0id 0"nd Included

Ta*es Included


E*ample >

Documents

BIDDING BASICS Reference Booklet