One of our subcontractor clients is back with more work for us. The construction manager, as the prime contractor on the project, overran the time period by six months. Our client submitted a change order request for additional compensation. It was rejected. The interesting thing is, two years ago we cautioned our client about even bidding this project in the first place. They reminded me of this when the call came in.
There were a number of red flags two years ago when we “warned” the client about the project. They were bidding a project for a long term client of their own. Only this time the client selected a construction manager/prime contractor to manage and perform the work on the project. There were other concerns at the time. The quality of the plans may have been an issue. It could have been the way the construction phases were organized. It could have been the track record of the construction manager.
The architects and engineers have control over their developing the plans and specifications for a project. But how often is a thorough quality control check done? How many bid packages have outdated material specifications? How many bid packages have specifications missing? What about coordinating the information on the architectural, structural, mechanical and electrical drawings?
What about the construction manager? Will their contract documents agree with the contract documents developed by the architect and engineer? What care has been taken by the construction manager to make sure the multiple work packages are scoped properly? What services, if any, will the construction manager provide to reduce the costs being submitted by the contractors?
This shows why the estimators on a project are the first line of defense for contracting firms. The estimators (the good ones anyway) are the only ones that have read or reviewed all of the specifications, plans and other contract documents at the time of bid. They are the only ones that know the project before it is built. They find the problems before they can cost real money and time. This is one of the reasons why there are so many questions developed by the plan holders at bid time.
Recommending that a company not bid a project is a serious recommendation. If the project is not bid this can cut off a potential revenue stream. When a company bids a problem project it either needs more profit to cover the risk on the job or the problems reduced. Making the right decision in the bidding period can help firms resolve their dispute before it occurs.
