As with the majority of multi-phase processes, meticulous planning is incredibly beneficial for commercial real estate capital and construction projects. In reality, real estate owners owe it to their stakeholders to devote significant time and resources to meticulous planning in light of the lengthy durations and high costs of projects.
To be exhaustive, you must compile a variety of facts for your bid package and bid forms. Below is a summary of some of the elements that are typically covered.
What Is a Bid Package?
A bid package is the collection of papers required to reply to an invitation to bid and participate in the bidding process.
Depending on the specifications set out by the institution making the bid, the variety of papers included in a given bid package will vary.
If a bidder fails to comply with the issuing entity’s requirements by not submitting all of the needed documents, he or she will often be disqualified from the bidding process or, at the very least, not be considered until a revised and full package is delivered.
Example of Bid Packages
The contracting industry provides one of the most prevalent instances of bid packages. A typical contractor’s bid package will comprise various papers, including a bid form issued by the company submitting the bid. In addition to the bid form, a variety of supporting papers will also be submitted.
These will include documentation such as sketches and drawings pertinent to the project, timelines for completion, pricing for each type of expense associated with construction, and even background information on the bidder in terms of years in business and experience with comparable construction projects.
As with any sort of bid package, the objective is to present all the information essential for the prospective customer to make an educated choice.
Types of Bid Packages
Contract allows seven types of Bid Packages, including the following:
Buyout Reserve – The amount of the initial budget left aside for completion or further acquisitions in the future.
This is often used when you wish to account for all of your budget’s expenses, even those costs that have not yet been allocated to work scopes in other bid packages.
You can design a Buyout Reserve bid package to account for your unallocated expenditures and include all budgeted costs in your reporting.
Engineered Equipment — a form of equipment that is engineered to meet specific requirements and produced in collaboration with a supplier or manufacturer.
Freight is a contract for third-party shipment.
Permanent Material – for materials whose requirements are related to the principal contract. These components are incorporated into the construction or project.
Professional Services – entail contracts for specialized, knowledge-based services.
Rental Agreement – an agreement that specifies the amount of rent to be paid and the length of time for which the renter is accountable for payment.
A subcontract – a contract for a firm or person to perform work for another company as part of a bigger project.
Preparing Bid Documentation
Documentation preparation is the first and most important phase in preparing for bids. Consider incorporating the following for a typical job description:
The RFP document outlines the rules and procedures you want potential bidders to follow during this bid process. This may contain a list of your team members, important dates, and the terms and circumstances of the bid process.
Plans and Specifications
Typically, the bid documents are the most crucial pieces of information to be presented with bidders. These will be created by your team in consultation with the architect or consultant and will outline in full the scope of the project.
Standard Form Contract
You may also include a copy of their standard form contract in the bid package. This will allow prospective bidders to view the form contract before to submitting a bid, ensuring that they are willing to sign it if given the contract.
Building Rules and Regulations
If you have a standard set of building standards and regulations with which the bids must follow, these should be communicated at the very outset of the process.
Similar to “rules and regulations,” it is crucial to communicate your insurance needs early on so that bidders may guarantee they have the proper coverage.
List of Approved Subcontractors
Some property management teams keep a list of permitted subcontractors that dictates who can work in the facility. If you have a standard list, it is recommended practice to include it in the bid package so contractors may use it in their estimate process.
Photos and Scope Narrative
Photos of the location plus a brief description of the project’s scope may be the entirety of the information provided to bidders for certain extremely minor tasks. This might be a list or simply a drawing by the project manager of the many tasks that need to be completed.
Creating Bid Forms
The bid form outlines how bidders should break down pricing in their bids, including for all baseline goods and alternative options.
As a beginning point for your bid form, you should ideally refer to bid forms from previous comparable projects. If that is not possible, check with colleagues to see if they have developed a bid form for a comparable work in the past, or ask your consultant team.
The consultants will be especially useful for works that are incredibly intricate or technical, such as the repair of a facade or the construction of a building’s infrastructure.
It’s not the end of the world if the scope of your construction or capital project is too unusual for a bid form to be produced beforehand.
Request that each bidder submit their proposal in any format they see appropriate. To make the offers equivalent, you will just have to spend further time leveling.
Establish the Appropriate Level of Detail
Fill out the bid form with as much specificity as possible. This will make it easy to compare bids and determine whether any bidders are missing vital information for the successful execution of the project.
However, the requirement for precision must be balanced with the bidder’s competence and willingness to complete the bid form as stated.
In addition, you may choose to delegate distinct job scopes. For instance, if you are soliciting bids for a bathroom remodel and an office buildout, it may be preferable to design distinct bid forms so that each one can be evaluated with greater precision. Select Line Item(s)
Not every expense category must be included, but adhering to the general framework will avoid miscommunication between you and the bidders.
Architects also utilize CSI codes, an index produced by the Construction Specifications Institute, to eliminate misunderstanding over the scope of each trade.
Given the frequency of use of these line items, it is often acceptable to omit the actual CSI code and instead use the description.
Ask about Markups
For the majority of projects, markups comprise General Conditions, Insurance, and Overhead & Profit. On specific projects, you may additionally need to consider Permits or Tax, depending on how the local government accounts for the sales taxes involved with building projects.
Frequently, you may want to investigate the cost implications of other possibilities, such as employing alternate materials or adding an additional component.
This will allow you to defer making final judgments on specific things until you have a better understanding of cost.
Whether the preferred alternatives are incorporated in the final granted contract or added as change orders later, the price will be determined during the bid process.
Request Unit Prices
You should also consider including unit costs on the bid form. This is particularly useful if the job’s scope may vary, since it allows you to construct a price foundation for future modification orders.
For instance, if the owner requests pricing per installed light fixture and the layout layer is modified, the owner will know what pricing to expect from the contractor and will not have to worry about being slapped with a hefty bill later on.
Your Bid Package
The IFB letter will be the initial item you encounter in your bid package. This letter will clarify what the agency is requesting, be it a project, a service, or the purchase of commodities or technology. It will also include the due date and time for the bid submission.
In addition, it will describe how papers must be provided in order to fulfill qualifying requirements. Also supplied will be the date, time, and place of the bid opening. The final section of the letter will outline how inquiries should be filed to the agency and how it will respond to them.
The next item in your bid package will be the Procurement Lobbying Packet, which must be submitted concurrently with your proposal.
These documents contain an explanation of state legislation and explain that some interactions between the agency and vendor may be restricted or, in some instances, prohibited.
I briefly stated these constraints in the first post; their applicability will depend on the nature of the particular offer. The Procurement Lobbying Packet must be completed and signed to demonstrate that you, the vendor, are aware of and agree to comply with any relevant limitations.
The third component of your package will likely include a collection of reading materials on the Standard Clauses for State contracts, which outline the rules and laws that apply to the contract in accordance with State law.
In addition, the MWBE and EEO policy statements, as well as a staffing plan and MWBE Utilization Plan, may be found here; these forms must also be completed.
If your bid package contains MWBE papers and you are unsure why they are necessary or what to do with them, contact your state’s MWBE department (if one exists) or the soliciting agency for clarification.
The third and maybe most significant component of your bid package is the precise specifications of the contract, which comprise general standards, contract terms and conditions, and other information concerning the bid and the contract.
If, for example, the contract is for inspections and maintenance work, you may also discover a description of the agency’s systems and equipment, depending on the sort of service the agency is seeking.
This section might potentially contain a Prevailing Wage schedule. If a bid includes a prevailing pay requirement, you must include the whole dollar amount allotted for prevailing wages in your bid’s grand total to be eligible for the award.
At the conclusion of this section, you will also find all the necessary paperwork that must be completed, signed, and submitted as part of the bid proposal.
The following materials may be included in your proposal:
Bid Proposal – This will appear differently for each proposal, based on the service being sought and the procuring organization issuing the contract.
The length of the bid proposal may range from one page to many. Here is where you will list the total price of your items or services for the life of the contract.
References – Bidders are required to provide at least three references for the purchasing agency to contact.
Your references should consist of firms, persons, and organizations with whom you have previously collaborated and who are able to evaluate your performance and give insight into your professional expertise.
Confirmation of Compliance – This form is an agreement that you, as the vendor, must sign to indicate that you have read the bid package and agree to be bound by the terms of the contract.
Certification: MacBride Fair Employment Principles – Before conducting business in Northern Ireland, American corporations are required to sign this code of conduct.
The Small, Women, Minority Owned Business Enterprise Questionnaire – A quiz to evaluate whether you qualify as a small company, woman-owned, or minority-owned enterprise.
A bid package is a bundle of information. It’s not just the price for a product or service, but it also includes any terms and conditions that need to be considered.
This means that if there are any additional products or services required to complete the job, you should list those in the bid package.
- *Title of Package: Enter a title for your bid package (e.g. Plumbing). …
- Number: Enter a number for your bid package. …
- Status: Select ‘Open’ if the bid package is still in progress. …
- *Bid Due Date: Set the date and time when this bid will be due.
Bid documents include the plans, specifications and estimates (PS&E) developed to describe all of the elements of a construction project and become the contract between the local government and the selected contractor.
A bid pack is what you need to buy to get started with bidding. DealDash operates in a pay to play model so before you can take part in an auction you need to buy bids. As soon as you have bids in your account you can start bidding.
What Goes on a Construction Bid Form?
- The Basics. At the top of the document, all of the contact information for both the construction company and the potential customer should be listed. …
- Project Scope. …
- Existing Conditions. …
- Cost. …
- Terms of Payment. …
- Relevant Documentation. …
- Work Schedule. …
- Formal Bid & Signatures.