Bidding and Pricing
June Small Firm Forum
Thursday, June 7, 2012
12 noon to 1:30pm
SFF Host: Donald Wardlaw AIA
Project cost issues appear to have grown in importance in the past few years. In uncertain times many of our clients do not part with their resources freely. There is also anecdotal evidence that “competitive bids” are seen by our clients as vital to spending their money wisely. There is also some evidence that negotiated projects are less preferable due to a perceived lack of price competitiveness in that method.
Those who have worked on larger projects know that competitive bids are the norm and, if properly managed it is a functional approach. Yet it can be difficult and may be inappropriate to graft those large project management techniques onto smaller projects.
There is also some evidence that what passes now for “competitive bids” is more aptly described as “competitive pricing.” It differs from competitive bidding on larger projects in two major respects: large project competitive bids are based on construction drawings, not design drawings; and, large project competitive bids are binding commitments to enter into a contract, usually a common form for all bidders, and to build the project for the stated price, readily comparable to the others. All this can be difficult to achieve when the construction drawings have not yet been produced, each “bidder” has an extensive list of unique “exclusions,” and each bidder has their own terms of Contract.
Is this a wonderful world or what?
This month’s Small Firm Forum will be an open discussion. We will divide it into two sections:
The first part will focus on whether there is, or is not, a need for concern.
1. How are the costs of your projects being determined? What are your experiences?
The second part will focus on (your) ideas and methods to make the pricing process reliable and effective.
2. Do we need new ways to manage project costs, given the need for some competitive component in determining project cost?
Looking forward to seeing you there!
1. Develop a reliable perspective on prevalent methods for determining project costs on small projects.
2. Learn what your peers are doing to manage risk in pricing, which may be a standard of care issue.
3. Learn from examples, how the pricing exercise can endanger or further project goals.
4. Gain insight into possible improvements to the bidding and pricing process.
Free for AIA members / $3 for non-members
1.5 CES LUs
Brown bag lunch (BYO lunch)