Understanding the Project Details
During the pre-bidding phase, contractors will thoroughly review all the details about the project put forth by the project owner or general contractor in what are known as the bid documents. This includes examining the project specifications, scope of work, building plans, material requirements, project schedule, contract terms, and more. Getting a solid grasp of the project parameters is crucial for putting together an accurate bid.
Site Visits
Many project owners will facilitate site visits and pre-bid meetings to allow all interested contractors to do a walkthrough of the jobsite and ask clarifying questions about bidding requirements or project expectations. Site visits give contractors valuable perspective to visualize the work and account for any unique site conditions in their bid calculations.
Risk Assessment
Pre-bidding is when contractors will assess all the potential risks associated with the project, including unexpected costs, requirement issues, scheduling challenges, safety concerns, etc. Evaluating the risk helps contractors determine adequate contingencies to cover unanticipated expenses.
Cost Estimation
The most essential part of pre-bidding is using the project details to estimate accurate project costs. Contractors estimate costs related to time, equipment, materials, labor, subcontractors, and other direct and indirect expenses. Accurate cost estimates lead to competitive yet profitable bids.
Securing Subcontractors
Contractors often have to secure bids from subcontractors during the pre-bidding phase for specialized work like electrical, plumbing, equipment rental, materials supply, etc. Integrating subcontractor bids into the overall bid proposal is key for the contractor to ensure their bid adequately covers the entire expected project scope.
In summary, pre-bidding aims to position contractors to develop and submit bid proposals that truly reflect the work entailed so they can be competitive in striving for bid award. Doing due diligence before officially bidding is what sets up a contractor for success if they are selected for contract award.
