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Selecting a Contractor & The Bid Process

The cast of characters involved in a restoration project comprises the building owner or its managing agent, restoration engineers and/or architects (E/A), contractors, and attorneys.

Once the Engineering / Architecture (E/A) firm completes the Contract Documents (CDs), the building owner selects a contractor best qualified to implement the work.

Contractors—and the teams of mechanics or tradesmen who work for them—perform the “hands-on” work delineated in the CDs that achieve the results the E/A prescribes.

Contractors are obligated to produce a final result that conforms to the E/A’s CDs. But the contractor, not the E/A, has sole responsibility for logistics—the means and methods by which that result is achieved. For example, staffing, number and type of scaffolds simultaneously deployed, sequencing, etc.

Materials might constitute only 10-20% of the cost of a restoration project, and in any event, materials are specified by the E/A. So, the quality and price of each contractor is primarily a function of its logistical capabilities, the skill of its mechanics and craftsmen, as well as its current workload and appetite for profit.

Contractors “contract” directly with the building owner. They have no direct contractual relationship with the E/A. However, the world of NYC restoration is relatively small, so most E/As are familiar with contractors within this niche.

 

Choosing the Right Contractor

Choosing the right contractor for a restoration project is pivotal to its success.

Contractor quality runs the gamut from (regrettably) those who don’t follow the CDs faithfully, substitute inferior materials for those specified, and perform improper work, to those at the opposite end of the spectrum who (thankfully) complete the project on time, exactly as specified in the CDs, extrapolating properly from the details that are shown, minimizing disturbance to building occupants, and communicating clearly and proactively with the E/A firm and owner.

Some contractors are better suited to certain projects based on their specialization and experience—e.g., roofing versus facade, curtain wall versus terra cotta.

Contractor selection should be based on:
1) The contractor’s reputation
2) Their understanding of / suitability for the project
3) The contractor’s fee. Airtight CDs are critical because they open competition to a wider field of bidders.
4) Schedule. Again, complete CDs are critical—a projected schedule is reliable only if the complete scope of work is known.

 

Bidding and Cost Estimating

Before an E/A firm distributes CDs to contractors bidding on a project, most firms generate a project cost estimate, itemizing the quantity of each of the restoration assemblies required for the job, together with their projected costs.

This information is critical in budgeting and financing the project, and in bid negotiations. Here, the competitive marketplace offers opportunities for value engineering.

 

Quantity Summary

Bidders receive construction documents that include a quantity summary which lists the total quantity of each of the restoration assemblies involved in the project. The summary may be generated for the project as a whole, or may be segregated by phase or facade. The quantity summaries provided by SUPERSTRUCTURES, for instance, allow the bidders’ estimators to concentrate on job logistics and implementation strategies rather than rote quantity surveying. Thus, contractors can price out a project more quickly and accurately.

 

Walk Through

The E/A typically conducts an on-site “walk through” for the bidding contractors. The walk through allows bidders to view, firsthand, the existing conditions and the project’s location relative to other streets or buildings that will impact logistics. It’s also an opportunity for bidders to ask questions or request clarification. Ideally, these questions are nuanced. The walk through is not the occasion for the E/A to explain the scope of the project or the details involved. That information should have already been provided in the CDs.

 

Bid Analysis

For most private-sector clients and the occasional public-sector client, the E/A firm is involved in bid analysis. Bidders are required to submit a lump-sum fee for the entire project, as well as a separate line-item price for each restoration assembly. The E/A firm prepares a detailed analysis of bid submissions, comparing competing bids with each other and with historical cost data. The firm assists during negotiations to secure the optimum value for the client—the best price from the most suitable contractor.

A successful restoration project requires effective coordination between the E/A firm that produces contract documents and the contractors that execute the work they prescribe.

Contractor selection and the bid process set the stage for a successful project. The next step is construction administration.

 

SUPERSTRUCTURES Engineers + Architects

14 Wall Street, 25th Floor, New York, NY 10005
(212) 505 1133
info@superstructures.com

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