There are two primary procurement strategies and contracting structures for construction projects. The traditional method, or more commonly known as design-bid-build, and design-build. The traditional design-bid-build model, is where bidding contractors provide lump-sum bids to perform the work, based on a completed set of design documents produced by an Architect or designer of record. The design-build model is where a single entity is responsible for both the design and delivery (construction) of the project.
Before inviting contractors to bid on a project, ABBCM pre-qualifies potential bidders based on financial stability, experience, capabilities, licenses, and certifications. Pre-qualification helps ensure that only qualified bidders are invited to participate.
To initiate the bidding process, ABBCM prepares a comprehensive Invitation to Bid (ITB) that includes a summary of the project, plans, specifications, sample contract terms and conditions, house rules, and other project specific requirements. A pre-bid site visit is conducted, and bidders may submit Requests for Information (RFIs) seeking clarifications or additional details. Upon receiving clarifications from either the Designer and / or Owner, ABBCM shares the responses to these RFIs with all bidders to ensure all bidders are working with the same information.
Upon receipt of the bids, ABBCM reviews, evaluates and levels the bids for completeness, cost, schedule, inclusions, and exclusions. A bid summary is prepared, highlighting the strengths and weaknesses of each bidder, identifying major differences between bidders and identifying any additional indirect costs that the Owner may need to take into consideration. Project contingencies are also recommended and reviewed during this time. Bid interviews are held with the bidders and Owner. These bid interviews allow the bidders an opportunity to share more about their company, their approach to the bid / project, and to speak in depth of their bid inclusions and exclusions. Following the bid interviews, a bid summary is provided reviewed with the Owner for a selection to be made. ABBCM upholds integrity and confidentiality between bidders, and does not share bidder’s information with another bidder, ask bidders to meet or beat a specific dollar amount, or provide favors to any decision makers.
Once a bidder is selected by the Owner, ABBCM will issue a Letter of Intent (LOI) to notify the selected Contractor of the Owner’s intent to award the Contract. ABBCM will also notify the other participating bidders that they were not selected. It is important to inform and provide feedback to those bidders who were not selected. Doing so demonstrates professionalism, respect for their efforts, and maintains positive relationships for future work.
Following the issuance of the LOI, ABBCM assists in the Contract negotiation phase. ABBCM facilitates communication and review of the Construction Contract between the Owner, the selected Contractor, and their respective legal counsel(s). Once all parties have reached an agreement to the language in Construction Contract, the contract is executed.
A properly coordinated bid administration and award process sets the tone for a successful project. By following these procedures diligently, ABBCM promotes integrity, transparency, accountability, and adherence to ethical standards. ABBCM is a leading construction management firm specializing in new construction and renovations of commercial, multi-family residential, sustainability projects. We excel at guiding the Owner, Designer, and Builder to ensure quality projects are delivered on time and on budget. For over 38 years, we have assisted building owners, architects, and Contractors to provide buildings that perform better.