Chapter 3: Securing Work in the selective bidding by invitation.

Construction Industry Private owners can set customized

qualification criteria and
Overview restrictions on bidding.
The construction industry is highly competitive, o Public-Private Partnerships
with slim profit margins and increased stakes. (PPP): These involve collaboration
Securing a project is the essential first step, between public agencies and
involving rigorous processes and strategic private companies to complete
decisions. public infrastructure projects. The
1. Finding the Work private party assumes significant
project risks, while the public sector
 Market Competition: Construction maintains control, delivering cost-
companies must consistently identify and effective, quality results.
pursue new projects to secure their place
in the industry. 4. Sources of Project Information

 Intelligence Gathering: This involves  Public Advertisements: Public projects

monitoring upcoming projects to get early are often advertised in newspapers, trade
insight, allowing companies to journals, or online portals like
strategically decide which projects to GovernmentBids.com.
pursue.  Electronic News Services: Subscription-
 Role of Personnel: Key team members based services provide up-to-date
such as senior estimators, managers, and information on project stages from
business development professionals are concept to completion, allowing
responsible for staying updated on companies to prepare bidding strategies
potential projects. and select worthwhile projects.

 Proactive Pursuit: Reactivity can mean  Bid Advertisements: These contain

missed opportunities. Strategic decision- critical information, including the project
making about which jobs are worth name, description, location, budget, and
pursuing is crucial to avoid wasted required bonds, providing contractors
resources on projects with low returns. with the details needed to decide on a
project bid.
2. Marketing Efforts and Early Involvement
5. The Competitive Bidding Process
 Importance of Early Engagement:
Engaging a construction manager early in  Procurement in Construction: This
the project benefits both the owner and process signifies the owner’s steps in
the construction process, improving securing construction services, with
outcomes for scheduling, budgeting, and competitive bidding as the predominant
design. method.

 Evolving Role of Marketing: Today’s  Evolution of Competitive Bidding:

marketing efforts focus on convincing Originating from WWI and WWII,
owners to involve the construction competitive bidding ensures
management team from the beginning, transparency, fairness, and taxpayer
ensuring a higher chance of project protection. Today’s methods include
success. traditional low-bid and newer options that
consider quality and performance beyond
 Positioning for Success: Marketing just cost.
personnel aim to secure the firm’s
involvement in design phases to optimize  Modern Competitive Bidding
cost control, efficiency, and project Concerns: Construction complexity has
quality. increased, making project management
skills critical. Selection criteria now
3. The Competitive Landscape and prioritize ability and qualifications, not
Contracting Rules just price, for successful project
completion.
 Public vs. Private Projects: Public
projects are funded by government 6. Project Selection and Delivery Methods
entities, while private projects are
financed by private owners or companies.  Low-Bid Selection: Common in
traditional design-bid-build projects.
o Public Projects: Require open Contractors submit sealed bids, and the
bids and adherence to public lowest compliant bid wins.
contract laws. Contractors
competing for public projects must
post bonds (bid, performance, and
payment) to safeguard project
funding and assure performance.
o Private Projects: Allow owners
more flexibility, often involving
 o Bid Preparation: Contractors o Low-Bid Selection:
obtain, review, and estimate based Straightforward; the lowest
on plans and specifications. The low responsive bidder wins.
bid meeting all bid requirements
typically wins, with the contractor o Best-Value and Qualifications-
receiving a “notice to proceed” Based Selection: Owners use
upon selection. requests for qualifications (RFQ)
and proposals (RFP) to evaluate
 Best-Value Selection (BVS): Combines technical plans and assign weights
pricing and qualifications, allowing for to quality and price.
evaluation of various design and cost
solutions. 8. Strategic Bidding Decisions

o Best-Value Proposal: Contractors  Bid/No-Bid Decision: Contractors assess

may be shortlisted based on potential projects based on feasibility,
qualifications and then submit both client reputation, payment terms, and
a technical and price proposal. alignment with company resources.
Owners weigh technical and price o Risk Management: A strategic
scores to select the winner. approach to selecting bids helps
 Qualifications-Based Selection (QBS): manage financial risks, aligning
Often used in agency construction with realistic expectations and
management (CM) or design-build capacity.
projects. This approach evaluates  Navigating the Competitive
experience, expertise, and management Landscape: Contractors must make
plans rather than price alone. informed decisions to maximize long-term
o Brooks Act: Federal law profitability, even in low-bid competitions
mandating QBS for architecture where winning the bid is just one part of a
and engineering services in public successful project.
projects, reinforcing quality over 9. Estimating and the Role of Senior
cost in services affecting public Estimators
safety.
 Critical Role of Estimating: Estimators
7. The Bidding Process and Criteria provide cost assessments, and accurate
 Bidding Process Steps: estimating is vital for both securing and
profiting from projects.
1. Obtain Plans and Specs:
Contractors obtain bid documents  Senior Estimator Responsibilities:
for detailed review. Balancing competitiveness with accuracy
in pricing to prevent project losses or
2. Review Plans and Specs: Review missed opportunities.
scope and determine if a bid
commitment is feasible.  Career Path: Successful estimators often
advance to higher management roles due
3. Prepare Estimates: Analyzing to the critical impact of their work on
resources, labor, materials, and company profitability.
overhead to develop a competitive
price. Chapter 4: Construction Contracts

4. Tabulate Bids: Finalize bid totals, Overview

add necessary profits, and prepare Construction contracts establish the legal
bid documents. agreement between an owner and a contractor.
5. Submit Bids: Sealed bids are These contracts outline expectations,
submitted by hand to ensure deliverables, and obligations on both sides. The
punctuality. contractor agrees to perform specific work for
compensation, following the requirements in
6. Bid Opening: Public bids are various documents within the contract package.
opened, and the lowest responsive
bid is announced as the likely 1. Understanding Contract Documents
winner. Documentation verification  Components: Construction contracts
follows to ensure compliance. include not only an agreement form but
7. Contract Award and Notice to also drawings, project manuals, and
Proceed: Final contract agreement various detailed specifications that make
and official start of project up the full set of contract documents.
construction.  Role of Contract Documents: These
documents communicate the project’s
design intent from architects or engineers
 Selection Methods: to the contractor, detailing the quality and
quantity standards for the work.
2. Primary Components of Contract traffic control, that go beyond standard
Documents general conditions.
 Drawings: These graphical documents,  Technical Specifications: Provide
created by architects and engineers, are detailed descriptions of materials,
essential for conveying the visual and workmanship, and installation methods
technical details of the project. required to meet quality standards.
 Project Manual: This includes the 6. Construction Specification Institute (CSI)
project specifications and defines the and MasterFormat
quality of the work, complementing the
quantitative details in the drawings.  CSI Role: Established the MasterFormat,
an organizational system for
3. Details of Construction Drawings specifications used widely in construction
to streamline document structure and
 Historical Context: Originally, builders communication.
used models to convey plans. Later,
architectural drawings became the  Original 16 Divisions: These traditional
standard, evolving from hand-drawn divisions cover general requirements, site
blueprints to digital CAD models. construction, and specific trades like
concrete, masonry, finishes, and
 Modern Advances: Today’s complex equipment.
projects use 3D and 4D computer
modeling, which adds a time element to  MasterFormat 2004 Update: Expanded
3D visuals, allowing for better to 49 divisions to cover additional needs
understanding of intricate details. in infrastructure, technology, and
sustainability.
 Drawing Types:
o Civil Drawings: Cover site
elements, like grading and utilities. 7. Types of Construction Contracts
o Architectural Drawings: Define Each contract type assigns specific risks, costs,
aesthetics, dimensions, and and responsibilities to the contractor and owner.
materials.
 Lump Sum Contracts:
o Structural Drawings: Detail load-
o Definition: Fixed total price for all
bearing elements such as beams
project work, common in building
and columns.
construction.
o Mechanical and Electrical
o Advantages: Clear upfront cost for
Drawings: Include HVAC,
the owner, but requires complete
plumbing, electrical systems, and
and accurate design documents to
communication wiring.
avoid costly change orders.
o
o Change Orders: Amendments for
4. Types of Drawing Views added work can affect time and
cost, with extra costs typically
 Plans: Horizontal cuts through the borne by the owner.
building, showing floor and foundation
layouts.  Cost-Plus-Fee Contracts:
 Elevations: Exterior views of each o Definition: Owner reimburses
building side. actual costs plus a contractor fee,
commonly used for projects where
 Sections: Vertical cuts illustrating scope isn’t fully defined.
detailed internal structure.
o Risks: Owner assumes cost risk, as
 Details: Close-up views of specific parts, there is no spending cap;
crucial for understanding complex contractors may require detailed
components. billing with supporting
5. The Project Manual Components documentation.

 Bidding Documents: Outline the bidding o Advantages for Contractor:

process, including advertisements, Profit guaranteed, but extensive
instructions, forms, and agreements. paperwork and clear definitions of
reimbursable costs are essential.
 General Conditions: Define the
responsibilities of both the contractor and  Guaranteed Maximum Price (GMP)
owner, establishing terms for payments, Contracts:
schedule, safety, and dispute resolution. o Definition: Variation of cost-plus-
 Supplemental Conditions: Project- fee with a set price cap. If project
specific conditions, such as soil testing or costs exceed the cap, the
contractor absorbs the overage.
 o Incentives: Shared savings 12. Master Format’s Functional Divisions
incentives motivate contractors to and Subgroups
work efficiently.
 Facility Services Subgroup: Covers
o Use Case: Often used in design- active building systems, such as HVAC,
build projects where work begins plumbing, and security.
before design completion.
 Site and Infrastructure Subgroup:
 Unit Price Contracts: Deals with utilities, earthwork, and site
prep.
o Definition: Used when quantities
cannot be precisely calculated  Process Equipment Subgroup:
(e.g., excavation). Contractors bid Addresses unique requirements for
per unit (e.g., per cubic yard of industries like manufacturing or utilities.
soil).
13. The CSI Numbering System
o Best Fit: Suitable for large civil
 Six-Digit Classification: Provides a
and infrastructure projects where
consistent numbering framework,
materials are hard to quantify.
enhancing organization and accessibility.
8. Administrative and Procedural Sections
 Examples: The first two digits represent
in Contracts
the division, and further digits classify
 Bidding Instructions: Detailed guidance specific tasks or components within the
on submitting bids, withdrawal rules, and division.
required deliverables.
 Bid Forms: Documents where
contractors submit pricing, schedules, and Chapter 5: Project Stages in Construction
other compliance assurances. Management

 Agreement Forms: These include the 1. Overview of Project Stages

legally binding signatures, formalizing the  The construction process is divided into
contract terms and expectations. several critical stages to ensure
9. General Conditions Explained systematic progress and project
completion.
This section outlines the rules and
responsibilities critical to a successful project.  Key stages include Design, Bidding,
Pre-Construction, Procurement,
 Owner’s Responsibilities: Provision of Construction, Post-Construction, and
site access, project information, and Owner Occupancy.
payments.
2. Design Stage
 Contractor’s Responsibilities:
Adhering to timelines, materials, site  Goal: Architects and engineers convert
safety, and cleanup. initial ideas and requirements into
detailed plans for construction.
 Contract Administration: Defines the
architect’s role in contract oversight,  Steps in Design:
including site inspections, dispute o Programming and Feasibility:
resolution, and time extensions. Define the project's goals, needs,
 Subcontracts: Outlines relations and preliminary budget.
between general contractors and o Schematic Design: Initial
subcontractors. conceptual drawings outline
 Insurance and Bonds: Specifies general spaces, layouts, and
insurance coverage and bonding to project orientation.
protect against project risks. o Design Development (DD):
10. Supplemental Conditions Detailed specifications and pricing
are developed. Value engineering
These are project-specific provisions that and constructability reviews ensure
address unique factors like soil testing, traffic feasibility.
control, or phased scheduling.
o Contract Documents (CDs): Final
11. Technical Specifications in Detail drawings and specifications
become the "blueprint" for
 Purpose: Complement drawings to
construction. All parties should be
describe specific materials, workmanship,
prepared for adjustments during
and installation techniques.
the process.
 Quality Standards: Define expectations
3. Compliance and Codes
for labor and materials, addressing every
aspect from foundation to final finishes.
  Objective: Ensure that all designs meet o Setting up field offices, securing
local building codes and environmental site, organizing access, and
regulations. developing site safety protocols.
 Key Considerations: Submission to  Superintendent’s Role: Leading initial
relevant authorities for plan checks and on-site meetings with subcontractors,
compliance reviews is necessary to avoid defining schedules, quality control, and
legal issues. establishing collaboration.
4. Bidding Stage 8. Post-Construction Stage
 Purpose: Select the appropriate builder  Objective: Complete final procedures to
through a competitive bidding process. deliver a functional building to the owner.
 Process: Completed design documents  Key Activities:
are distributed to contractors, who submit
bids based on project requirements. Final o Punch List: Identify and fix
selection of the contractor depends on remaining tasks to meet
cost, capability, and alignment with specifications.
project goals. o Substantial Completion: After
5. Pre-Construction Stage the punch list is completed and
inspected by the architect.
 Transition to Construction: After
contract signing, the project manager o Final Completion: Ensures all
assembles the project team and documentation and final
coordinates planning. requirements are fulfilled.

 Roles in the Project Team: 9. Certificate of Occupancy

o Project Manager: Oversees the  Purpose: A legal document allowing the

project. owner to occupy the building, issued after
final inspection ensures compliance with
o Contract Administrator: Assists life safety codes.
with contract details.
10. Commissioning
o Superintendent: Manages on-site
construction activities.  Objective: Test systems and equipment
to ensure full functionality before handing
o Field Engineer: Handles over to the owner.
paperwork and technical tasks.
 Training: Train owner’s personnel in the
 Due Diligence: Identifying potential risks operation and maintenance of new facility
and addressing them, particularly in site systems.
work.
11. Final Documentation
 Permitting: Securing necessary permits
is essential to begin construction.  Types of Documentation: Warranties,
operation manuals, inspection reports,
6. Procurement Stage and as-built drawings are essential for
future maintenance.
 Objective: Obtain the necessary labor,
materials, and equipment. 12. Owner Move-In and Warranty Period
 Process:  Move-In: Hand over keys, provide spare
parts for repairs, and ensure smooth
o Subcontracts: Bidding and transition.
selection of subcontractors for
specific tasks.  Warranties: Types include express
warranties (quality of workmanship) and
o Purchase Orders: Agreements implied warranties (products meeting
with vendors to supply materials basic standards).
according to project specifications.
 Project Evaluation: Post-project analysis
to learn and improve future processes.
13. Success Measurement
 Success is determined by meeting owner
satisfaction for aesthetics, function, cost,
quality, and time, alongside achieving fair
7. Construction Stage contractor profit.
 Mobilization: Setting up the construction
site, establishing layouts, and
coordinating resources.
 Preparation Steps: