Bidding and ProcurementPresentation OverviewBidder PrequalificationWork PackagesBidding InformationInvitation to BidInstruction to BiddersBid FormAlternatesAddendaStudy the Contract!Contractual InformationBondsInsuranceTechnical RequirementsTypes of SpecificationsSlide 17Note the CSI Switch to MFormat 2004Work Breakdown Structure (WBS)Keys to Winning a BidBid StrategyBid StrategyProcurement ProcessSubcontract or Self-Perform?Preparation for BuyoutImportant Subcontract ProvisionsAnalysis of BidsProject CleanupConstruction Project ManagementConstruction Project ManagementFourth EditionFourth EditionConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedBidding and ProcurementChapter 7Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedPresentation Overview Bidder PrequalificationBidding process Bidding strategies Work breakdown packagesAnalysis of bids Award of contractConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedBidder PrequalificationBidders should be put through a qualification process to verify that if selected they will have both the resources and expertise to successfully perform the work they have been contracted to complete.Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedWork Packages“Work Packaging” establishes the breakdown of the overall project into smaller, manageable, subcontract pieces.All project work needs to be covered and each package must clearly articulate the work to be accomplishedOn a “fast-track” project the A/E and CM must coordinate the design and release of each packageConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedBidding Information Invitation to bidInstruction to the biddersBid formAlternates AddendaConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedInvitation to BidProject DescriptionProject LocationBid Due DateProject Start and Completion DatesBonding RequirementsDocument LocationLegal RequirementsConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedInstruction to BiddersBid Due DateBid Form InstructionsPlace to indicate fee of additional workUnit PricesLocation to Deliver BidMethod of Awarding ContractExpected Date of Award and Project StartConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedBid FormName of ContractorPrice in #’s and wordsPrice Breakdown by major tradesAmount of bondAlternatesFees for additional workUnit Prices Time required to complete jobBidder acknowledgement of receipt of addendaKey SubcontractorsBidder legal status: ie. Corporation Signature, title and dateConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedAlternatesAn alternate is a request for a price for substituting one material for another, for adding to the scope of work, or for deducting from the scope.Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedAddendaAn addenda is a change in the documents made during the bidding phase, before contract awardBidders often identify inconsistencies that must be correctedBid documents may also be released prior to design completion such that the addenda complete the remaining design.Acknowledgement of all addenda releases occurs on the bid formConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedStudy the Contract!Identification of parties to contractDescription of project and work to be performedStart DateDate of Substantial CompletionLiquidated DamagesContract SumProgress PaymentsInterest RateRetainageFinal PaymentEnumeration of Contract DocumentsConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedContractual InformationAgreementGeneral ConditionsSpecial ConditionsBonding RequirementsInsurance RequirementsTechnical RequirementsConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedBondsBid Bond – guarantees that the selected contractor will enter into a contract with the owner for the bid pricePerformance Bond – guarantees the contractor will perform the work in accordance with the terms of the agreementPayment Bond – guarantees the contractor will pay all billsConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedInsurance Workers' Compensation - this insurance covers disability and medical insurance for the workforceComprehensive Liability – provides protection for 3rd party claims – injuries to non-workers even after completionBuilder’s Risk – Property insurance for the building while it is under the control of the contractor: fire, water, explosion, vandalism and theft.Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedTechnical RequirementsProject technical information is delineated in two forms: graphic (drawings) and narrative (specifications). Information is usually only shown in one of the two places.Construction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education, Inc.All Rights ReservedTypes of SpecificationsDesign – Descriptive specification which the contractor follows and the owner takes responsibility forPerformance – Expectations identified the contractor determines how to meetProprietary – the exact product or method is specified to ensure a preferred productOpen – very nonrestrictive allowing a number of choicesConstruction Project Management, 4/eFrederick Gould, Nancy JoyceCopyright © 2014 by Pearson Education,