WHAT IS BIDDING PHASE?

The construction company will be entering in a contract with the client – not with you.

WHAT IS BIDDING OR NEGOTIATING?

Bidding is where the owner prepares to select the contractor for the job and sign contracts to proceed with construction. This phase will typically take up 5% of the architects time and fees. Multiple contractors submit bids on the job or the client can directly hire a contractor without getting competitive bids. The architect's role here will be to assist the client, answer contractors' questions provide any additional documentation if requested by or needed by the contractor.

Having an architect on your side during the bidding phase of construction is of great advantage to you. At minimum, we aid you in developing a list of qualified contractors for your bid list as well as submitting bid packages to bidders. But we can also review submitted bids, provide analysis, and help you compare the cost figures that you receive from your bidders. This phase will ensure the contractors you are considering for your construction project are reading the blueprints correctly and are providing an accurate bid (apples to apples) for your project. Having an architect to consult with during this phase of the project can help you navigate what can often be a confusing process and can provide you with extra reassurance that your hiring the best contractor for the project.

On a similar note, if you have an exact budget in mind at the beginning of the process, we may recommend you hire a contractor to consult and review during the Schematic Design, Design Development, and Construction Drawings from the beginning in order to ensure the project is within the specified budget. Only a General Contractor can guarantee a price of construction; architects and cost estimators who provided budgets cannot guarantee those prices.

NEGOTIATED VS. COMPETITIVE BIDS

There are two different types of bids: a negotiated bid and a competitive bid.

The negotiated bidding process is more relaxed, as you are only dealing with one contractor. With this type of bid, the client or the architect selects a preferred contractor and works with that contractor to develop a cost and proposal for the construction.

A competitive bid is the one we usually think of – where you have several contractors all competing against one another for the project.

NEGOTIATED BID PROCESS

The negotiated bid is the most common method of bidding for commercial construction projects. It is a more straightforward, less formal process that is applicable for most projects. Also, most project owners prefer to negotiate price and terms directly with the general contractor of their choice. Since project owners work directly with the general contractor, there is less risk of leaving out important details that could affect the bid estimate. Also, consulting directly with the client gives the contractor the ability to make recommendations regarding materials, delivery method, value engineering principles and other variables that can significantly reduce construction costs with higher quality work. Another advantage of using the negotiated bid process is that it allows the client and contractor to solidify their relationship. The mutual goal for both parties is the successful delivery of the construction project that is within established budgetary guidelines.

COMPETITIVE BID PROCESS

First, you will have to create a list of contractors you want to invite to the table. Use Google to find contractors in the project area – travel costs can add up quickly. Look at their website and see if the projects they have worked on in the past are like your project, both in size and quality.

From there you can find and call up architects who have worked with the contractors. Ask them questions about their experience: Were they happy with the quality of their work? Was the contractor’s bidding price accurate?

Next, call up the contractors. Explain the project and make sure they have the time and resources for it. Send the project documents, including the drawing set, to the contractors who are prepared to take on your project – usually this is done by uploading them to a file sharing site. Typically, contractors take about three weeks to put together a bid. Once you receive all the bids it’s time to pick a contractor.

Usually, cost is the most important factor. This is where the accuracy and completeness of your construction documents comes into play. If the bids are all similar in cost, give yourself a pat on the back – you did your job well! When this happens, the cost becomes less important and you can focus more on other aspects of the bid – like the quality or experience of the contractor.