Competitive bidding among qualified subcontractors ensures fair pricing while selection process
balances cost with quality, capability, and relationship factors.
Complete bid packages include contract drawings and specifications, scope of work description clearly defining inclusions and exclusions, schedule requirements and milestones, site logistics and access, coordination requirements with other trades, submittal and approval requirements, payment terms and retainage, insurance and bonding requirements, and warranty requirements.
Bid package quality prevents problems through clear scope definition avoiding ambiguity, complete information enabling accurate pricing, consistent format for all bidders ensuring fair comparison, adequate time for bid preparation typically 7-14 days, and opportunities for questions and clarifications.
Incomplete bid packages cause scope gaps, pricing discrepancies, disputes during execution, change orders and extras, and low quality submissions reducing bid value.
Price represents primary but not sole consideration requiring detailed pricing breakdown when needed, scope coverage verification confirming complete work included, exclusions and allowances clarity, alternates and options pricing, and payment term requirements.
Qualifications matter significantly including specific project experience, current workload and capacity, technical capability for specialized work, equipment and resource availability, and subcontractor team quality.
Relationship factors include past performance history if applicable, communication and responsiveness during bidding, willingness to collaborate and coordinate, problem-solving approach, and long-term partnership potential.
Evaluation matrix scores each criterion objectively using weighted scoring (price 50-60%, qualifications 30-40%, relationship 10-20%) preventing solely low-bid selection ignoring quality and capability factors.
Bid leveling ensures fair comparison by normalizing scope adding items to low bids missing scope elements, clarifying ambiguous inclusions, adjusting for different exclusion lists, and confirming specification compliance.
Common bid discrepancies include missing or incomplete scope items, different material quality or brands, varying warranty terms, schedule or staffing differences, and unclear pricing for changes or extras.
Reference checking validates qualifications through recent similar project verification, quality and workmanship assessment, schedule performance history, safety record confirmation, and communication and coordination evaluation.
Thorough evaluation prevents selecting lowest-price subcontractors with incomplete scope or inadequate capability causing problems exceeding any price savings.
Price negotiation addresses scope clarifications and adjustments, value engineering opportunities, payment term discussions, schedule requirement refinement, and warranty enhancements when possible.
Contract negotiation finalizes insurance requirements and limits, indemnification provisions, change order procedures and pricing, dispute resolution processes, and termination provisions.
Award notification provides prompt notice to selected subcontractor, written contract or purchase order, project specific requirements review, schedule confirmation and coordination, and prompt notice to unsuccessful bidders maintaining relationships.
Professional bid evaluation and selection balances price competitiveness with quality assurance and relationship building for project success.