Sample Construction Bid
A sample construction bid is a hypothetical, or possibly a proposed bid developed by a construction contractor for either inside use or as a first offer to property owner. A sample construction bid can be used to see whether or not the project is profitable enough for a construction company to pursue, or to see if the number is within the range desired by the owner.
A sample construction bid breaks out each item involved with the project, from material to equipment and employees, into a subsection so it can be specifically reviewed and adjusted as needed.
In the traditional method of selecting a contractor, an architectural firm is hired by the property owner to develop a design for the building or project. Once that design is completed in approved by the client, the architect then puts the design out for bids. While the architect may want to know more information about a contractor than their price, the bottom line is the primary reason for the selection of most primary contractors. In some cases, the bid is the only thing that is presented and the lowest bid gets the project. In most cases, the architect and owner hold a pre-bid meeting to discuss the project, which can help the contractor develop a sample construction bid.
While a sample construction bid may contain the information needed to develop the all-important bottom lines, there can be other factors beyond the simple baseline price that can determine a project winner. With the design-bid construction method, construction project bids cover more than just the price to build a building. The design-build method combines the architect and contractor as a unified team, where they present not only their price to build the project, but their architectural design as well. Design-build construction project bids include an all-inclusive price, including the cost of design and construction. If a contractor has a good relationship with an owner, they may pass the sample construction bid to them to see if it is "in the ballpark," but while this practice may occur, it is of questionable legality.
The construction manager at-risk (CM at-risk) method is another way construction bid jobs can be designed. Under the CM at-risk method, the contractor and architect operate separately, but the contractor is involved in the process from the beginning and serves as a liaison for the client in dealing with the architect. CM at-risk bids are not blind, and the client can select whichever contractor he believes is best suited to handle the project. The contractor's bid comes in the form of the guaranteed maximum price, which states the cost of preconstruction services and the construction process itself will not go over a certain total. The GMP is included in the sample construction bid, but may be adjusted before the final bid is submitted.
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