Blog

A Better Way to Bid

While many companies choose to hire contractors based on cost alone, the hard bidding process doesn’t take into account the experience and qualifications of the contractor, which can make a project run more smoothly and realize cost savings.

We just went through a better bidding process with Fulton County Schools. While they still take into account the cost, they grade contractors on a weighted scale. Seventy-five percent of the bidding contractors’ grade is based on financial stability, approach to project, experience, staffing and schedule and 25 percent is based on price.

This process allows Fulton County Schools to choose the most qualified contractor whose price is within the budget. The qualifications of the contractor were important to the county because the projects they were bidding have very aggressive schedules, and they needed to be sure the contractor they choose is capable of meeting their timelines.

We thought this was a great model to bid under because it moves the public sector further toward a qualifications-based selection, instead of simply choosing the lowest bid.

Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.

Brian Newsome, LEED® AP

Bridging Method Allows Owners to Compare Apples to Apples

Developed by George Heery of The Brookwood Group, the bridging method of
commercial building is similar to design-build, but provides a more level playing
field on which contractors can compete.

In this method, the owner contracts with an “Owner’s Design Consultant” (ODC),
who prepares an initial schematic design of the building, including the items
with the potential for the widest variables, such as the layout, specifications for
finishes, what type of exterior finish is desired, measurements for the distance
between the floor to the deck height and other drawings, but they don’t produce
permit ready drawings. Basically, the ODC is designing the surface features of
the building, or what people will see when they walk in the door.

Once this phase is complete, a contractor like Albion Scaccia bids the cost of
designing and building the superstructure, air conditioning, plumbing, electricity,
foundation and other functional systems, in addition to the initial design the ODC
has produced.

In the design-build method, contractors may be bidding based on widely varied
designs and finishes. I may be presenting the Taj Mahal and my competitor
may be presenting a mud hut. The owner then has to choose between two
completely different projects. In design-bid-build, the designs are complete
before the contractor bids, so the owner can’t take advantage of the contractor’s
value engineering skills and experience. The bridging method already has the
size, layout and look of the building complete, so contractors are bidding the
same project, with only minor differences in structural and functional systems.

The benefits to this method are that owners are comparing bids on the same
project and can also fully utilize the skills the contractor brings to ensure design
and building efficiencies are realized. This method also produces fewer change
orders and gives owners a firmer hard cost, while providing the contractor the
opportunity to put numbers together quickly and start the building process while
design work is progressing.

Albion Scaccia is a woman-owned commercial construction company in Atlanta
providing full service design, build and construction management solutions. In
just over 13 years, our focus on client satisfaction has helped us grow into one
of Georgia’s premier design build companies. We offer turnkey construction
management services to ensure your project progresses smoothly, efficiently and
within budget.

Brian Newsome, LEED® AP

Executive VP

Design-Bid-Build: Economical or Costly?

The design-bid-build delivery model seems like the most cost efficient way to build your project. An architect designs your project, you send the specifications out for bid to builders and choose the least expensive option. The builder has all the designs for the building, so what could go wrong?

Unfortunately, a lot could go wrong. If you are simply going by the lowest bid and not vetting the builders for their qualifications, you could be hiring an inexperienced builder for your project who may not anticipate coding or permit issues, design problems, material cost changes or other problems associated with commercial projects. Not only that, but the pressure to deliver the lowest bid may lead to using low quality subcontractors or materials.

I’ve recently talked to a few people who have had disastrous results with this delivery model. One told me his project, originally bid at $750,000, was now going to cost over $1 million with cost overruns AND be two months late.

So how can you protect yourself if you’re obliged to use this method to identify builders? I would strongly suggest checking qualifications first, then selectively sending your bid request to those who meet your qualification standards. That way, you can weed out any builders without the appropriate experience.

Also, if you’re not obligated to automatically accept the lowest bid, take a close look at the bids. If the price difference is significant, find out what the differences in costs are so you know what to expect from the builder you choose.

Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.

Brian Newsome, LEED® AP

Executive VP