This document provides best practices for project owners to bring projects in on time and on budget. It recommends thoroughly scoping the project, defining its unique aspects, and getting cost estimates at three stages of design. It also suggests creating a clear plan with schedule options, detailed specifications, and quality metrics to encourage more competitive bids. Project owners should communicate plans clearly to minimize change orders and save money. Bids with a variance of 5-10% indicate contractors understand the project scope equally well.

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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