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| SUBCONTRACTOR AND VENDOR SELECTION SUBCONTRACTOR AND MAJOR VENDOR SELECTION Bid Management Effective bid management optimizes the balance between project cost and subcontractor performance. Well-informed bidders, with adequate time to prepare a quote, submit lower prices because there are fewer surprises and less risk for them. Effective analysis of bid packages is essential to cost control and construction efficiency. For example, crafting bid packages around the known capabilities of local subcontractors increases the likelihood of more local participation and lower overall prices. The use of intelligent preplanning of complicated bid packages can save an owner as much as 5% of construction costs, and separates the truly knowledgeable preconstruction-oriented general contractor from the average. The important elements of our bid management program include: - Estimating the probable construction cost for each bid package; - Reviewing construction documents for coordination and completion as well as any constructability concerns; - Preparing of general conditions of construction for inclusion in documents; - Analyzing and defining contract packages to generate maximum completion from local subcontractors; - Soliciting interest from bidders through advertising, telephone calls and personal visits; - Holding pre-bid conferences to clarify scope issues, resolve uncertainties and explain site management methods and standard procedures; - Issuing accurate, complete bid documents; - Receiving, analyzing, negotiating and awarding bid packages to successful contractors in a prompt, professional manner; - Preparing systems to monitor trade contractor submittals and performance. Selection of Key Subcontractors During Preconstruction Phase Sometimes it is advantageous in the design phase to bring key subcontractors on board to optimize the constructability and to reduce any element of uncertainty in the likely final cost. The challenge is maintaining a competitive environment while accomplishing these goals. We sometimes bring key subcontractors on board immediately through a fee and qualifications based selection process. As part of the early selection of key subcontractors, the contract language will be such that if dismissed from their obligations as a member of the construction team, then work will then be competitively bid. MBI knows how to use this approach. The key subcontractors are selected competitively based on fee and qualifications, and they have an incentive to be cost competitive throughout the process. Conversely, the project benefits from their early input. MBI is capable of operating under a similar contract structure as an �At-Risk� construction manager. The concept is the same for subcontractors � a sophisticated construction management team can negotiate this kind of agreement in a way that encourages the subcontractor to perform well during preconstruction, but also ensures competitive pricing, and provides an �out� clause if the pricing is not acceptable. LONG LEAD PROCUREMENT Prompt procurement of owner-supplied and contractor-supplied long lead-time equipment is an important consideration during preconstruction. As the preconstruction phase progresses, MBI coordinates with the client and develops a submittal tracking log which is used throughout the construction phase to schedule, track and coordinate long lead items and owner items. We use this log to recommend timing of purchases and ways to expedite equipment so that they will be delivered on time. |
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