Tuesday, May 27, 2014

Equalizing the Public Works Construction Bid Process

In bidding public works construction projects, it is important for public agencies to include basic information about the conditions that the successful contractor will be required to meet, including but not limited to the following:
  • Scope of work
  • Schedule for completion of the work
  • Liquidated damages amount per day
  • Bonding and insurance requirements
  • Prevailing wages
Problem bid documents:  Sometimes, I see public agencies ask contractors to include with their bid the contractor's proposed length of time for completing the work.  The problem with this and similar approaches is that the bidders are, in essence, bidding on different projects.  Contract duration directly impacts bid prices, and the bid documents must clearly define the amount of time allowed for doing the work. This helps ensure that all of the bidders are bidding on the same set of assumptions about the project.

Mike Purdy's Public Contracting Blog
© 2014 by Michael E. Purdy Associates, LLC

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