Description of the Construction Bidding Process
Construction bidding is the process of submitting a proposal to undertake or manage the construction of a project or specific scopes within a project. All across the country companies are bidding the construction and development of new infrastructure. This process provides opportunity for multiple vendors and subcontractors to submit their qualifications and value. The process is also valuable to the customer because they can secure the best quality services at a competitive price to ensure the success of their ideas and projects.
The purpose of this document is to provide the reader with an overview of the classical process of construction bidding. The reader will have a general understanding of the fundamental components of the construction bidding process. The simple schematic below, figure 1, provides an outline of the construction bidding process.
Figure 1: “Procurement of Information Technology: Fiduciary Forum 2008 Overview” http://slideplayer.com/slide/5801134/
The Bid Documents Gathering and putting together a bid package is the initial step of the construction bidding process. The bid package outlines all the details of the entire project including drawings and specifications. The customer or company seeking bids is responsible for developing complete and factual information to the potential bidders. This increases the chance of a successful project outcome. The package should include: the project plan or scope
A basic definition for the procurement is “the way the building is realised” and “involves assembling and organising the skills and services of a team of construction professionals”. (the Construction Round Table, 1995). More precisely, the construction industry describes procurement as “a system that establishes the roles and relationships which make up a project organisation”; hence the overall organisation and communication structure for the management, administration and control of a project is established by the procurement system. (D.C.H Coles, 2010)
Key outputs in this phase are the Projects Requirements definition, the capability and capacity assessment, project delivery strategy and the Project Management plan. The role of the construction/ project manager in this phase is, once project authorized, it is the project manager’s responsibility to implement the project. In terms of the Project Requirements Definition the, the project manager refines and details the project authorization and details what the project is required to accomplish in terms of the products/services the project will deliver and the scope of work that needs to be done. The project manager must provide project team members, corporate sponsors, and other stakeholders with a common understanding of what the project is all about, and is the authoritative reference document that defines the project.
This paper will explore how Sealed Bidding and Competitive proposals compare against each other. In order to compare them one must understand how, when and why each topic is used. The primary source of federal procurement information and guidance is the Federal Acquisition Regulation, which consists of Parts 1-53 of Title 48 of the Code of Federal Regulations (CFR). FAR parts 14 and 15 explains in full detail Sealed Bidding and Competitive Proposals. This paper like the federal government will rely heavily on the FAR as a source document to help explain the details of this topic.
Over the past few years, the construction industry has been changing dramatically. One of the most important stages in the construction management and business management is the planning phase. They share similar two main levels of planning which are the strategic and operational planning. However, business management planning to decide in advance what should be done, and how to do it, when you do and you are done. On the other hand, Construction management strategic planning is to deal with selection on a high level of overall objective of the project, including the scope, procurement methods, schedules and financing options but the planning of operations, including the
The Superintendent is appointed in writing by the Principal and notified in writing to the Contractor.
The information that they provide is scrutinized and their credit is checked to qualify their bid. After the proposals are accepted and the subcontractor is awarded a job, a formal contract needs to be put in place. This contract covers all the project specific information in detail specifying what is expected from the subcontractor, the legal disclosures and liability clauses. A project furnishes mainly three pieces of a contract: the scope of work, project schedule and schedule of values. The scope of work covers the work that is expected to be performed, project schedule specifies the time in which the awarded project needs to be completed and the schedule of values points out the detailed breakdown of the cost the contractor is going to fulfill for the project which is generally derived from the purchase order. Change order is the change which takes place in the scope of work after the contract is put in place, these need to be documented and the increase or decrease in the cost affected by this change need to be compensated by either of the parties. The task of performance evaluation is yet to be performed by me which would be covered in the next phase of the internship when I observe a bid from awarding to
1. Name and briefly describe each of the two basic types of competitively bid construction contracts. Which type would be most likely used for building the piers to support a large suspension bridge. Why?
We are requested to assist the building with creating a method of construction cost data for client throughout the pre contract. The task of data collection is a difficult procedure and can be include to wide variations. Based upon our experience as quantity surveyors we chose to develop a cost data collection method. Our define construction line items and quantities for relativity building types.
In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.
Choosing construction management as a procurement strategy means the client is responsible for leading the
Construction projects are always unique and risks raise from a number of the different sources. Construction projects are inherently complex and dynamic, and involving multiple feedback processes. A lot of participants – individuals and organizations are actively involved in the construction project, and they interests may be positively or negatively affected as a result of the project execution or project completion. Different participants with different experience and skills usually have different expectations and interests. This naturally creates problems and confusion for even the most experienced project managers and contractors.
terms of time can be managed in this scenario, as there is no specific delivery
Keeping all this in mind, builders have to work alongside clients to satisfy their project needs. Projects are also being built quicker because of the demand to occupy them instantly.
When choosing a type of procurement it is based on the clients experienced and knowledge of construction that the client has and there requirements. Once this has been decided then the relevant contracts can be drawn up outlining the relevant responsibilities shared and risk taken into consideration and also meeting the correct legislation and the Housing Grants, Construction and Regeneration Act 1996. With regards to the Housing Grants, Construction and Regeneration