The materials on a construction project do not care where they are installed. The price of a 2 x 4 is the same on the first floor and the third floor. The price for 3/4” copper pipe can be the same for one project as another. Anyone can call and get pricing on materials, whether [...]
Even the smallest of construction projects is an incredibly complex process that involves thousands of components. For the most part these components are stock products that are custom fit to yield a building, process plant or other facility. Unlike an assembly line for appliances or automobiles where all pieces are designed to precisely fit, in [...]
The bid date and time needs to be strictly enforced. If the contractor is a second or later, then their bid needs to be returned unopened. An official clock should be present and visible for the receipt of bids. Also, the bid date and times need to follow an unwritten guideline. Tuesday, Wednesday, and Thursday [...]
My ENR View Point http://enr.construction.com/opinions/viewpoint/2009/0916-WhenBiddersBomb.asp on qualified contractors losing work to unqualified contractors really struck a chord with numerous readers. A couple of the responses suggested tightening up the bidding process by requiring prime contractors to name subcontractors. This is already a requirement, and has been for many years, in various locations around the country. [...]
In coffee circles, the Fair Trade principle is a stand taken by companies to make sure the small coffee producers get a fair price for the coffee beans regardless of the actual price of coffee. They guarantee a minimum price to the sellers. This is deemed to be a living wage. They also provide credit [...]
Production rates will change dramatically depending on the quality of work that needs to be performed. A wall that is put in a museum takes longer than one in a warehouse. Also the level of finish would be higher in a museum than it would be in a warehouse. Make sure that you include the [...]
On publicly opened bids all pertinent information should be read aloud. If the information is important enough to be on the bid form, then it should be read. This includes the total dollar amount, addendums received, alternates, and subcontractors all should be announced if it’s on the bid form. Any failures to comply with the [...]
Bonding a construction company’s operations is an interesting concept. A bid bond is a promise the contractor will honor its bid on the project or pay for not honoring the bid. A performance bond is a promise to the client the project will be completed. A payment bond is a promise to pay subcontractors and [...]
I was looking through a very interesting book this last week that was given to me by a friend. The book is titled State-By-State Guide to Construction Contracts and Claims by Michael Dodd and J. Duncan Findlay. I came across a section about Interest in Retainage. The question that is asked: Is the payee entitled [...]
Just this last week I heard of two bid openings where the qualified bidders lost the opportunity to pickup work. They lost the work to an unqualified bidder in both cases. Just how was the other bidder unqualified in these two cases? Both bidders “bombed” their respective jobs. They bid the work substantially lower than [...]
