Qualifying Your Scope of Work in a Contract

Project owners who put their jobs out to bid have a lot to consider. What are the experiences and qualifications of the contractors they’re considering? How do their prices compare? What is the timeline associated with going with one contractor versus another?


Comparing bids can feel near impossible, and the bid prices can vary significantly for the same proposal. In responding to your bid, contractors are making certain assumptions about how the project will unfold as they price out their bid. They are also generally building out their bids with less than the full view of the project. They may not have the completed project designs or be privy to the exact specifications for your job. Their estimates are a reflection of these assumptions.


Moreover, in preparing their bid, contractors may also recognize issues in the proposal and need to call out specific exclusions in their bid with a qualification statement.


What is a Qualification Statement?


When you send out your proposal to various contractors, they respond with what they believe it will take to complete the job. But sometimes there are essential components missing from the proposal that will need to take place in order for the work to be completed as proposed.


For example, if the project owner doesn’t have a geotechnical report and wants to construct a deep swimming pool in South Florida, we would respond with a qualification statement that includes something such as “We have not included any soil engineer recommendations such as de-watering in the estimate.”


If the property is mere feet above sea level, we would need to install sheet piling during excavation and install well point systems in the ground to draw water down to allow for deeper excavations in the water. This is an issue specific to South Florida.


Our qualification statement would call out additional requirements to do the job as proposed. These additional requirements are not included in the bid, but they alert the project owner to important factors they will need to consider as they evaluate their project and the other bids they receive.


Why Qualification Statements are Important


An essential part in selecting a contractor for your project is hiring a team who is transparent and trustworthy. If you receive a qualification statement as part of a bid, consider it a good sign that your contractor is being forthcoming about potential hurdles to your project and follow up with questions.


At Seacoast Construction, we recognize how imperative open lines of communication are to the success of a build. If you have questions about a bid you received from another contractor or need help understanding a qualification statement, don’t hesitate to come talk to us. We’ll help you understand the differences among bids and what those differences could mean for your project. Contact us today with any questions.



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