By John H. Devine
Have you ever attended a bid opening where the bid prices were so far apart that it appeared the contractors were bidding different projects? Well, maybe they were.
Close bids dont just happen by accident. They are the result of a well prepared set of bid documents which will allow each contractor to accurately "quantify" all the work that is to be performed. A wide spread in bid prices can indicate the projects scope of work was not clearly defined, causing the contractors to base their prices on different quantities of work.
The designer for the project must not only prepare the bid documents in a clear and well defined manner, he must make sure that the work called for can be "quantified"by the bidders. This will ensure that all bidders are basing their cost estimates on the same quantity of work, thus giving the specifier more of a likelihood that he will get what he intends at a price that reflects actual value.
One way the specifier can clarify the bid document package is by never using a phrase beginning with the word "IF." By definition, "IF" indicates uncertainty and doubt. Specifications, on the other hand, are described as an exact statement prescribing materials, dimensions and workmanship for an item that is to be built or installed.
By using the word "IF," the specifier is saying he is in doubt as to what is needed, and he is leaving it up to each bidder to make that determination. It should surprise no one that there will be a wide variety of determinations. An experienced estimator will provide for a more comprehensive determination where as Joes How-Low-Can-You-Go Construction will allow for only the minimal and submit change order requests later for everything else.
The "IF" question should be answered and clarified by the project designer when preparing the bid documents. This also applies to phrases such as, "when needed," "as required," and "where required." The purpose of the plans and specifications is to remove all doubt and clearly present the designers intent.
There are times when the statements describing the work can appear to be clearly defined, but they may not contain enough information to allow the contractors to accurately measure the quantity of work desired. For example, the statement "Replace roof shingles and ANY deteriorated roof decking" may seem clear, but the quantity of deteriorated roof decking cannot be accurately measured until the construction phase, when the existing roof shingles are removed, exposing the deteriorated roof decking. In these situations the designer should establish allowances. For example, in this particular scenario the designer could state: "For bid purposes assume replacing 3,000 square feet of deteriorated roof decking."
When using allowances for unknown quantities of work, the contract will have to be adjusted by a deductive or additive change order after the actual amount of work is determined. But by establishing allowances, you can feel comfortable knowing that all bidders are basing their price on the same scope of work. This avoids pricing misconceptions by establishing equivalent units on which to base pricing. Given this situation, the owner pays only for the actual work performed, and it is understood by both the owner and the contractor that some adjustment would be made when the actual scope of work can be determined.
Change orders have been given some bad press in our industry because it has become an industry assumption that they are used to cover inadequacies in bid documentation and under-estimations on the part of the bidders. However, if it is clearly understood by all parties that some numbers can not be quantified at bid time, and if a baseline is established which all parties agree can be adjusted, there are no surprises for the owner, designer or contractor and each has a cooperative role rather than an adversarial one.
Remember the four "Cs" of specification writing: to be CLEAR, CONCISE, CORRECT and COMPLETE. And when a portion of the work can not be quantified by the bidders then an allowance "for bidding purposes only" should be established.
In the construction industry, our objective should be a teamwork effort to build a successful project. Our best chance for that is to clearly indicate to one another what we mean, how we want it done, what we are going to do and for how much. Clearer communications means fewer surprises and quicker, more cost effective resolutions to problems. In this manner owners will receive quality construction for the best price resulting in a successful project for all parties.
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