As any contractor knows, it can be difficult to bid on a job when your background information stems from incomplete drawings. So much time and effort is put into estimating the project, and with incomplete drawings, you wonder if the general contractor or owner will be able to compare apples to apples, or if it might cause you to lose the project.
Putting a successful bid proposal together is more than just jotting down numbers and gambling for a good outcome. Proper bid preparation requires time and effort, and it is particularly important to obtain a proper understanding the plans and specifications. It is also helpful to conduct site visits, estimate costs for labor, materials, and equipment, as well as ensure everything is covered. A small mistake could be the difference between being awarded the job, making or losing money, or having to move on to the next project.
Some estimators bid only what is shown on the drawings. They may know other items will need to be added, but they compensate for it with change orders. However, change orders can be a gamble for the contractor and might affect their relationship with the general contractor or owner.
In the bid process, a prudent contractor should look for errors, omissions, and conflicts in the drawings. If something substantial is found that affects your ability to produce an accurate estimate, send a written communication. Make sure you receive a response from the architect via one of the general contractor's requests for information (RFI). You may want to refer to a detail on the plan to clearly express your concern.
One of the biggest problems that can impact the relationship early on is subcontractors not including what is being asked of them to bid. If you are changing what is in your scope of work, materials, or anything in the plans and specifications, it may be beneficial to include a separate page in your bid for each additional item or change you feel is needed, along with a brief explanation and specification. Keep these explanations neutral and free of blame. Clearly indicate what items are necessary and what may be optional. They can either accept the additions and changes and include them in the contract now, or deal with them in a change order later.
You may also wish to include a clarification sheet with your bid. This document would list items that seem vague in the plans or specifications and calrify how you are interpreting something. This is especially important when the plans and specifications conflict with each other or something that was expressed to you verbally.
Exclusions may also accompany your bid. This could include any undercutting below planned sub grade and dealing with unacceptable soils and asbestos remediation. Contractors may also struggle with what is covered in their bid, especially when they leave off and the next contractor continues. The plans may not show who is responsible for supplying which items.
It is not uncommon for a contractor to discover inaccuracies or incomplete drawings. Once these discrepancies are discovered, the contractor should give prompt notice according to the contract. Depending on the degree of those errors, it could affect your rights to recover any additional cost. Therefore, it is critical that you fully understand your obligation to the contract and state law. A construction attorney can be a great resource for protecting yourself.
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