CONSTRUCTION PROJECT BID PREPARATION TIME
Bid errors resulting from time pressures during the construction project bid preparation process are one of the common features in construction contract disputes. Bids are often prepared under great time pressure, which often results from two causes:
(1) The time allowed by the client between the invitation to bid/propose and bid due date is usually limited, and,
(2) A contractor is normally working on more than one bid/proposal at a time and divides his/her cost estimating and pricing resources among all active invitations.
If a construction contractor is to effectively operate in this environment, he/she should have complete, established procedures to guide all but the most complex features of bid preparation. Policy planning (standard operating procedures and guidelines) should be established for use on all bid work. Planning and executing a proper bid review before submittal offers some assurance that a rapidly developed bid will be complete.
CONSTRUCTION DISPUTES – BID ERRORS
An excellent example of contractor bid errors from a recent Holloway Consulting Group construction disputes case arose from a situation where the time required by the third tier contractor to prepare steel shop drawings and fabricate and deliver steel joists was not communicated to the general contractor prior to bid submission and contract award. As a result, the general contractor based his bid pricing on an unachievable schedule, resulting in delays,schedule acceleration and disputes.
Another common mistake that Holloway Consulting often sees in construction disputes is the general contractor’s failure to obtain detailed schedule commitments from its subcontractors prior to the bid. As a result, the subcontractor’s bid pricing often does not reflect the general contractors schedule requirements, which often results in change orders and/or disputes with the subcontractor.
Such bid errors result from basic inadequacies and failures of the contractors’ internal operational procedures and policies and are inexcusable.
The Holloway Consulting Group, LLC – Construction Claims Experts
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
Denver Phone: (303) 984-1941
International : (888) 545-0666
Fax: (303) 716-0432