Step # 13 Organize the Information Create a List of Special Work Conditions
- Example:
- – Site Conditions
- Tight Work Space
- Hard Ground
- Wet Conditions
- Contaminated Soils
- Environmentally Sensitive Areas
- Difficult Access
- Haul Routes
- Scheduling Conflicts
Environmental Mitigation
- What Must I Protect?
- What Must I Replace?
- How Much Will it Cost?
- How Long Will It Take?
- Conflicts with Other Trades
Step # 14 Organize The Information Create and Maintain a Bid RFI System
Step #15 Organize the Information Create and Maintain an Issues Log
Log – Log – Log
Step #16 Organize the Information Addressing Alternates and Special Pricing in the Bid
XYZ Construction
Pricing for Alternates and Other Special Pricing Requests Always Carry Certain Risks
- How likely is it that the work will be performed?
- How much overhead and profit do you apply to this alternate?
- Are you giving away profit and project overhead if the alternate work is not performed?
- You will most likely have to justify this price in the future
Step #17 Organize the Information Create and Maintain a Log of Value Engineering Ideas
Creating a log of value engineering possibilities is like creating a list of “Plan Bs” that could help mitigate certain risks on the project
3rd – Distributing Information
- Takeoffs (Sheets/forms/software)
- Invitations to Bid (Bid Packages)
- RFQs (Requests for Material and Sub Quotes)
- RFIs (Requests for Information forms)
- The Bid Proposal (Form/format)
- Database of YOUR own information
- Budget for accounting department
- Data for schedules
- Data for Project Management Software
- WBS (Worksheets for developing the Work Breakdown Structure)
- Data for contracts
Getting to the Bottom Line Six Basic Elements of the Price
- Labor
- Equipment
- Material
- Subcontractors
- Overhead
- Profit
Step #18 Establishing Your Cost Basis
- Hourly labor rates
- % rate for sales tax
- Fuel per gallon rates
- Owned equipment rates (per hour/day/week/month) including maintenance
- Equipment rental rates
- Materials and common overhead
- Daily company overhead
- % rate for profit
- Insurance rates
Labor Basis Worksheet
LABOR RATES – Cost Basis Worksheet
Step #19 Develop a WBS (Work Breakdown Structure) and/or Bid Item Take Off
- What is a Bid Item?
- – An item of work or other cost related to the project for which a unit price is desired
- What is a Work Breakdown Structure?
- – A logical breakdown of various components within those bid items that clearly reflect how the project is likely to be constructed
Let’s assume there are no pre-defined bid items for our sample project. If you could create bid items to best reflect the scope of this project what would they be? Use the form above to break this project down into bid items. Remember, the WBS – Work Breakdown Structure should be a snapshot of how the project might actually be constructed. For now let’s not be concerned with quantities. Just record a logical breakdown of the work.
Identifying “logical” bid items will help the entire bid process. Not only will you get better prices, you will probably get them faster.
Use sufficient detail to allow for the assignment of risk at any given place within your bid
Step #20 Develop and Maintain a Checklist for Subcontracted work
Develop and Maintain a Checklist for Subcontracted work
Step #21 Perform Quantity Take Offs
- Methods of Take Off
- – Scale and calculator
- – Digitizer and spreadsheet
- – Digitizer and estimating software
- – Handheld device
Remember – Flexibility is KEY
Bid Item Quantity Take Off
(Determining the Quantities for the Bid Items)
The highlighter and red pen
-
Have conventional color codes within your estimating office
-
– Example:
-
• Blue = Water
-
• Green = Sewer
-
• Orange = Storm Drain
-
• Brown = Concrete
-
– Use red pen for notations
-
– Use pencil when “sketching” on plans
-
– Make your highlighting significant to you
Step #22 Develop and Distribute Bid Packages or Requests for Quotes to Subs
-
Establishing scope
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– Request scope letter
-
Who develops the scope?
-
– GC?
-
– Sub?
-
– Both?
Step #23 Send Scope Letter
- As soon as possible
- – Mock Bid Proposal
- – Leave $$$ Blank
- Should contain
- – Quantities
- – Inclusions
- – Exclusions
- – Any information that will help get your competition on the same page.