We’ve all been in situations where we are under the gun to get a bid out the door in an unreasonable amount of time – working nights, weekends, and holidays to make it happen. We’ve been fed those $100 million dollar pursuits that are due in four weeks that are loaded with lump sum “catch all” bid items. During these trying times, we eat dinner at the office, drink our evening Starbucks, go home and sleep a few hours just to turn around and do it again the next day. It’s a brutal cycle but it’s reality in the world of preconstruction.

Although this is tough on contractors and their families, it is tough on project owners as well. Whether they know it or not, they are paying the price by putting a short fuse on a project at bid time. Here is why:

PRICE
Contractors are going to be conservative when they do not have enough time to fully analyze a project. When more bid time is offered, contractors tend to find innovative solutions to speed up productions, adjust phasing, solicit best-value subcontractors, and identify value-engineering opportunities.

RISK
Contractors need time to absorb bid documents in order to ask valuable questions. If there is an error or omission in the plans, it needs to be addressed at bid time to avoid costly change directives during construction. The same goes for conflicting language in the specifications. Bringing issues to the table at bid time levels the playing field and is cheap insurance for all parties.

COMPETITION
Limited bid time tends to equate to limited competition, because many contractors lack the resources necessary to turn bids around in a short amount of time. This is actually a bonus for larger contractors with adequate estimating horsepower, but it does not benefit project owners. Less competition means conservative pricing and higher margins for contractors. It also limits the amount of participation from small business subcontractors, as they are often running very lean with regards to salaried manpower. Most public works projects have small business or disadvantage business goals tied to them, and a short fuse does not help promote inclusivity.

Dynamic helps project owners work their way through the procurement process to ensure that they receive the best price possible with the least amount of risk. When there is no conflict of interest, we’re also here to help contractors with preconstruction staff augmentation on these quick burn pursuits. Don’t miss out on an opportunity just because your estimators are at capacity. Let us assist your team, and we’ll be there to ring the bell with you on bid day!