Best practices for bidding construction projects.

1. Best Bidding Practices for
Project Owners

2. You can bring
a project in
on-time and
on-budget
The City of DeWitt, Iowa,
brought its 6th Avenue
project in under budget at a
final cost of $1.3 million.

3. Scope it Out

4. Never assume
Projects may be similar, but each has
a unique set of circumstances

5. Define uniqueness
The owner should actively work with the
engineering firm to determine:
◍ Project scope
◍ Preliminary design: emphasizes
drawings and cost estimate
◍ Final design: plans, specifications &
updated cost estimate
◍ Owner’s plans for specific area
◍ How does the project fit into the overall
Capital Improvement Plan?

6. Clinton, Iowa,
Lincolnway
project
Clinton’s air and rail park
called for a flexible lead rail
track design as funding
sources’ requirements
unfolded.
Options explored for
mitigation to the surrounding
wetlands brought the track in
10% under budget at $1.39
million

7. Ensure design & changes
are within budget
Estimate 3 times:
◍ Before design
◍ As initial design phase is complete
◍ Prior to bidding

8. Is your design team current with:
• Construction trends
• Potential bidders
• The bidding environment
• The vendors
• Unique aspects of the project
Research can influence
estimates

9. Create a Plan

10. Detailed
plans &
specs are
important

11. Build in quality metrics

12. Construction schedule options
affect pricing
Calendar days:
◍ Late start date
◍ Weather days allowed &
count as working days
◍ Can contractor fit “this”
into existing
commitments?
Working days:
◍ Late start date
◍ Charge a working day
only if weather is nice
◍ Completion date is more
variable

13. Bid letting (opening) schedule
affects pricing
◍ Roadway, utility & grading
contractors schedule their work
differently than building contractors
◍ Time of year makes a difference
◍ Outdoor projects are ideally let in
January & February when
contractors are eager to schedule
work for the entire year

14. Bid with schedule options to compare
cost of each schedule
Schedule & budget
both important?

15. Get a Quality Bid

16. Take the time to clearly
communicate so that:
◍ Contractors have the
same understanding of
the work
◍ Change orders will be
minimized
◍ You save money

17. Clear plans & specs
encourage more bidders
Designs should be specific, but not dictate
the solution.
◍ Allow the contractor to choose
approach to construction of the project

18. 5 to 10% bid variance is optimal
Bids with low variance
indicates contractors
have the same
understanding of the
project

19. Research the outlier’s bid
Why is the bid so different?
◍ Different market pricing structure?
◍ Market is busy/not busy?
◍ Experience with owner?
◍ Experience with engineering firm?

20. Place your screenshot here
I’m happy to share ideas
Geoffry Blandin
563-823-0192
g.blandin@iiwengr.com
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