Beyond the Bottom Line – What Really Matters When Comparing Bids

You’ve gone through the process of completing a constructability report and you’ve put your project out to bid. Now, how do you go about evaluating bids and deciding which contractor you should ultimately hire?

 

There are several important things to look for as you compare bids – it’s not just the final number at the end that matters.

 

Why You Need to Read the Line-Items and Scope of Work in a Bid

 

When contractors put together their bid proposals, they make certain assumptions based on the construction documents they receive. Even when your job specs are very detailed and your plans concrete, you will find differences in how contractors interpret the needs for those plans – and thus receive varied bids for the project.

 

Yes, the bottom-line number at the end of the contractor’s proposal is an important factor in your decision, but equally important (if not more important) are the specific line-items included within the bid.

 

What to Look for in a GC’s Scope of Work

 

When contractors qualify the scope of work in their bids, it’s because they believe there are essential components missing from the proposal that would need to take place in order for the work to be completed as proposed.

 

When a GC qualifies their scope of work, they are calling out additional requirements needed to do the job as proposed and to alert the project owner to important factors they will need to consider as they evaluate their project and the other bids they receive.

 

These statements can be a way for contractors to raise a red flag for you with your project design – and this is a good thing. If you receive a document from a GC qualifying their scope of work as part of the bid, consider the transparency as a positive sign that your contractor is being forthcoming about potential hurdles to your project and follow up with questions.

 

If you have concerns about a bid you received from another contractor or need help understanding their scope of work, don’t hesitate to come talk to us at Seacoast Construction. We’ll help you understand the differences among bids and what those differences could mean for your project. Contact us today to ask your questions.

 

 

 

 

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