It shouldn’t amaze me but it still does. An owner is rushing a project out to bid that is less than 30% designed, with a short bidding period and expecting contractors to give them a firm price – without any change orders during construction! Someone is not playing with a full deck under these circumstances and it is not necessarily the contractors.
Contractors know the bidding “game” far better than owners, at least the smart ones do! This instantly puts the owner at a disadvantage because who wants a dumb contractor on their prize project? These projects are by nature the larger ones – say over $20 million in value.
Smart contractors know the bids on these contracts are just for looks and show. The bidding game is to give the right number to get the award, not necessarily price the job correctly. Who will give the right price on a $50+ million project in one month with less than 30% designed plans and specifications? Unless the owner wants to pay a substantial premium for including all possible contingencies I would venture to say the answer is, “nobody will’.
Owners need to step back, take a deep breath and have a cup of coffee before they make such decisions to rush projects out for bid. They will save far more money at bid time. They will have better project features by thinking through the design. They will get better lower cost bids on complete plans and specifications. This will reduce the amount of change orders so they can have a cost effective capital project program.
