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(EST-1013) An Effective and Ethical Approach to the GC Bid Process

Primary Author: Mr Christopher W Carson PSP Alpha Corporation

Audience Focus: Intermediate
Application Type: Experience-Based
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: Stipulated sum open market bidding for design-bid-build is still a popular way to handle project delivery. In this highly competitive market, the primary qualification is financial, proven by the ability to post a bid bond, and once that hurdle is met, the contractor is selected by the apparent low bid.

In the author’s 25 years of experience in various roles in estimating, from materials surveyor to bid captain, he developed a process that could be implemented on all bids, and would allow for the best possible low bid while still working with a solid base of subcontractors. The process allows for quick resolution of subcontractor selections, achieving this goal at bid time, and allowing the project planning to start immediately after NTP without an extensive process of buy-out.

This process covers the entire bidding portion of the procurement from initial choice of projects to bid to scope of work evaluations, and at the same time eliminates the need to engage in the risky and potentially unethical bid shopping negotiations with subcontractors.