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Monitoring the Contractor Bidding Process

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Monitoring a construction bidding process involves much more than looking for the lowest total bid. If three contractors are bidding on your project, the architect will typically develop a spreadsheet with three vertical columns. At the top will be the name of each construction company. Below those names will be a series of horizontal line items, including, for example, plumbing costs, electrical costs, millwork cabinetry costs, flooring, fire sprinkler system, and painting. The goal is to ensure an apples-to-apples comparison. If a line-item cost is missing from one of the contractor’s bids, the architect will call the contractor to see if this overlooked cost might be included in another line item. If two of the contractor’s costs for a particular line item are similar, and the third is substantially lower, the architect will again call to ensure that this lower cost indeed covers all the requirements pertinent to the line item in the construction documents. Architects act much like the referee in a basketball game, making the players play within the rules. Rely on them to navigate you through this sometimes very tricky process.

The architect and the contractor are both qualified to design cabinets for your new office, but it may be preferable to have your architect be responsible for cabinetry design and include the drawings in your construction documents.

Beware of the contractor trickery that involves allowances. Let’s assume that the architect has called for specific lighting fixtures for your new office in the construction documents. Two of the bidding contractors quote you a similar cost for these light fixtures. The third quotes you an “allowance” for these fixtures of a much lower dollar amount. What the allowance indicates is that the contractor will only cover the costs of these fixtures up to a maximum of this lower dollar figure. The remaining costs will be added onto your final construction costs. This is a ploy to gain an edge on competitors by appearing to have a lower bid. Any time allowances are involved, the total cost quoted for your project ends up being a mirage.

Building or Refreshing Your Dental Practice

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