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Training Manual
1/16/2024
Preconstruction Preconstruction/Estimating Training Manual
1/16/2024
This manual is intended to be an interactive document. Click content links below to jump to their respective sections. Once within the respective sections, all tabs/exhibits are hy bottom of each tab/exhibit contains a hyperlink entitled “Return to Table of Contents” that will bring you back to this page. This manual is intended to be an interactive document. Click on any of the table of links below to jump to their respective sections. Once within the respective sections, all tabs/exhibits are hyperlinked to the actual work products and on any of the table of ked to the actual work products and samples. The ( Note: most of the individual tabs that are hyperlinked contain multiple documents/samples. Please scroll through documents/samples. Please scroll through all of the related documents within the individual tab sections) all of the related documents within the
Table of Contents
1. LCI standard tools to be utilized on negotiated and/or hard bid projects
2. Hard bid process
3. Preconstruction Process
4. List of preconstruction tools
LCI Standard Tools to be Utilized on Negotiated and/or Hard Bid Projects
Leopardo has established that the following seven items are the core tools to be utilized on all projects as stated below. These tools represent our standard processes that ensure continuity and consistency of deliverables to our internal and external clientele.
1. Kick of Meeting with operations - (Tab 02) – Mandatory for all projects whether negotiated or hard bid a. Purpose of this meeting to is to set the expectations for the estimating exercise
2. Bid Day Recap (BDR) – (Tab 07) – To be utilized on all projects whether negotiated or hard bid a.
Leopardo’s estimating software for tracking of costs, developing detailed budgets, subcontractor bid day leveling, WBS (work breakdown structures), alternates, profit projections and development of general conditions.
3. Narrative – (Tab 08-03) – To be utilized on all projects whether negotiated or hard bid a. To describe the qualitative aspects of the project b. Clarify assumptions made c. List of exclusions d. Types of narratives i. Preconstruction narrative ii. Performance narrative based on assemblies iii. Short form iv. Long form v.
Standard suggested language to be considered for developing the aforementioned
4. OST (On Screen Takeoff) – (Tab 13) – Predominantly used on negotiated projects but can be utilized on hard bid projects a. Software utilized for quantification of building components to be used for pricing in conjunction with the BDR
5. Master Reconciliation – (Tab 21) - Predominantly used on negotiated projects a. Track the overall project costs from one budget deliverable to the next b. Track the trade by trade cost variances from one budget deliverable to the next c. Indicates what CCL each budget deliverable is reconciled through d. The value impact on a trade by trade basis of approved CCL items and the adjusted amounts e. Shows the entire project cost history from inception through GMP f. Used to develop the executive summary (below)
6. Executive Summary – (Tab 22) - Predominantly used on negotiated projects a.
Purpose is to define and describe the pricing variances from one budget deliverable to the next on a trade by trade and division by division basis using the master reconciliation as a guide
7.
CCL (Cost Control Log) – (Tab 20) a. The purpose of the cost control log is to empower the owner to have complete control over their project budget b. On a budget by budget basis, this tool is utilized for the following: i. Track potential scope revisions and/or value design options by assembly ii. Status of items (approved, pending, rejected, recommended) iii. Date of item origination and diary of status for historical purposes iv. Indicates the suggested value of the project based on accepted items v. Shows the potential lowest possible value for the project if all recommended items are approved
Hard Bid Process
1. Operations to complete a Go-No-Go evaluation for the project pursuit. (Tab 01)
2. Estimating assistant and/or coordinator opens up a job number, puts the documents on LCI’s
invitation to bid software (Building Connected) and creates the master filing system.
3. Complete mandatory kick off meeting with operations to discuss approach to the job, strategies,
subs, timing, prebid meetings, etc. (Tab 02)
4. Team lead is to fill out the cost to estimate the job work sheet, populate the responsibility
matrix (the responsibility matrix details the events and timing required for a successful bid),
confer with the VP of P/E for team resources, create team org chart, set up the BDR, review the
LCI bid requirements for subs to ensure their the most up to date. (Tab 03)
5. Set up the ITB, select the subs and advertise in the industry publications as needed. (Tab 04) .
Cross reference the subcontractors that are LCI prequalified and follow the prequalification
process (Tab 32).
6. Set up a kick off meeting with the estimating team. Use the prescribed agenda for topic matters
(all of the meetings typically held in the responsibility matrix have a suggested agenda for use
with team meetings). (Tab 05)
7. Review the bid procedures and strategies documents to ensure LCI is strategically pursuing all
possible avenues to be competitive in the marketplace and review the spy list documents and
update as appropriate. (Tab 06)
8. Populate the BDR and review the final numbers with the VP of Preconstruction/Estimating and
the BU point person. (Tab 07)
9. Write the clarifications and exclusions utilizing either the short form or long form templates.
(Tab 08)
10. Issue letter to subcontractors notifying them of the bid status and disposition of project. (Tab
31)
11. Upon project award, conduct the TQM approved hand off meeting with operations using the
prescribed agenda and procedures. (Tab 09)
12. Once the project is nearly bought out, hold an 80% bought meeting with the operations team
(Tab 10), file the results on the J:Drive for future decision making on other projects.
Preconstruction Process
1. During the Pursuit: a.
Answer/respond to RFP b. Interview/presentation with potential client c. Final negotiations/award
2. Initial Estimate: a.
Estimating assistant and/or coordinator opens up a job number, puts the documents on LCI’s invitation to bid software (Building Connected) and creates the master filing system. b. Kick off meeting with LCI team/exchange project information, set expectations on deliverables, staff costs, subs to consult with, decide on tools to be used, etc. (Tab 02) c. Have a kick off meeting with the owner and design consultants to understand the goals and vision of the project. d. Leopardo team is to understand the roles of the PX, PM and estimators. The PX and PM lead the preconstruction effort with the estimators working in support of them using the preconstruction procedures and tools (Tab 06) e. Team lead is to hold story boarding session with estimating team describing the effort, items to capture on the area summary, review risks/opportunities, approach to the project, timing of work flow, deliverables, team assignments, review the tools to be used and determine if any new ones are required, create BDR template, etc. f. Value design-assist A/E in most cost effective types of substructures, super structures, enclosures, MEP systems, etc. and review overall approach to project (roles, identify other consultants that will be needed, discuss programming, stacking adjacencies, design schedule, etc.). (Tab 11) g. If the project is a LEED project identify the potential lead components. (Tab 12) h. Develop initial detailed budget in BDR (Tab 07) and use OST’s to layout assumptions based on outcome of the items aforementioned. (Tab 13) i. Prepare narrative using the Leopardo format outlining the assumptions made during budget development. (Tab 08) j. Create a performance spec for subcontractors to use for accurate budgeting. k. Create preliminary preconstruction/construction schedule. (Tab 14) l. Identify early bid packages. m. Put together bid packaging strategy (identify components needed in each). (Tab 15) n. Develop preliminary general conditions (by operations) and preconstruction estimating staff costs spanning multiple escalation periods. o. Develop preliminary trade general conditions. p. Develop site logistic plans. (Tab 18) q. Create project safety plan and review risk management procedures. (Tab 19) r. Compare initial budget against owner anticipated budget, tweak design parameters as required. Document agreements and cost reduction ideas on the cost control log. (Tab 20) s. Review/negotiate owner agreement and inform the VP of P/E of the terms and conditions affecting profitability (buyout savings, disposition of contingency, etc.). t. Hold a team charrette to review budget deliverable and adjust accordingly.
3. Schematic Design Phase:
a. Create a detailed estimate using the BDR and OST. Consult with subcontractors as agreed to during the kick off meeting . (Tab 07, Tab 13) b. Meet with city officials and other governmental agencies to map out permitting requirements and process. Supplement schedule accordingly. c. Review preliminary site logistics plan with city officials for approval and pricing. Adjust logistic plan accordingly. (Tab 18) d. Develop performance spec for MEP systems, exterior elevations, floor plans, concepts of building, start programming, and hire other consultants that are not on board. e. Attend weekly meetings to review what is on the drawing boards for conformance to budget parameters. Continue giving feedback on material costs and steer the design accordingly. f. Review schedule for Preconstruction phase, adjust construction schedule based on building adjustments, etc. (Tab 14) g. Develop cross sections of building, review for cost and constructability issues. h. Develop a new cost control log for the SD phase and document items that were previously accepted in the initial budget phase that are not yet incorporated in the SD design as well as any other scope creep/changes to the pricing. Review weekly with team. (Tab 20) i. Create a master reconciliation using our standardized template comparing the initial budget to the SD budget and reconcile the CCL. (Tab 21) j. Develop an executive summary using our standardized template explaining the variances in the new SD estimate and list the added scope on the CCL. (Tab 22) k. Prepare SD budget, tweak items as necessary via cost control log. l. Hold a team charrette to review budget deliverable and adjust accordingly. m. Agree on SD budget and assumptions made. n. If applicable, upload project budget information and area summary categories into Modelogix for historical purposes. 4. Design Development Phase & GMP ((combined both, similar process in many respects): a. Review DD documents for constructability issues. (Tab 23) b. Identify subcontractors to assist in budgeting or hard bidding. c. Prepare Division 1 Project Manual and review with team for buy in. (Refer to J: Drive) d. Map out bidding process and review with team. (Tab 24) e. Finalize bid packages and strategy. (Tab 15) NOTE: refer to tab 29 for long lead item schedule. f. Refine schedule and supplement as required.
g. Finalize site logistics. (Tab 18) h. Finalize general conditions. i.
Finalize trade general conditions.
j. Finalize construction schedule for early bid packages. k. Advise team on material shortages, lead time concerns and/or material price volatility. Utilize LCI procurement lead time tracker. (Tab 29) l. Owner to sign off on floor plans, programming and elevations. m. Prepare early bid package documents (i.e. scopes of work, schedules, identify all bid documents, adjustments to project manual, etc.). (Tab 25) n. Review early bid package drawings for constructability issues, scope creep, etc. Have drawings corrected accordingly or adjust cost control log as needed (use template form). (Tab 23)
o. File for permits for early bid packages. p. Pre-bid meeting. q. Bid early packages. r. Spread subcontractor numbers for analysis. (Tab 28) s. Post bid reviews. (Tab 27) t. Compare bid results to anticipated budget amount. u. Subcontractor award. v. Review documents to insure the design matches the accepted items on the cost control log. w. Have weekly meetings reviewing design for conformance to budget parameters. Give team feedback on costs. x. Engage subcontractors for ongoing feedback on value engineering ideas for the team to consider. y. Prepare DD budget (as the drawings become more complete, less detailed estimating is performed by us in favor of conveying scope to subs and having them budget) and modify accordingly via cost control log. z. Prepare detailed narrative on assumptions made during budget phase. (Tab 08) aa. Create a master reconciliation using our standardize template comparing the SD budget to the DD budget and reconcile the CCL. (Tab 21) bb. Develop an executive summary using our standardized template explaining the variances in the new DD estimate and list the added scope on the CCL. (Tab 22) cc. Hold a team charrette to review budget deliverable and adjust accordingly. dd. Agree on budget and/or GMP. Prepare CD drawings. ee. Enter into and prepare GMP amount complete with clarifications, exclusions, alternates, unit prices, at 100% DD documents (no less than 80% documents depending on size and complexity of project). ff. Identify all subcontractors that will be invited to bid and prepare project bid list. Advertise in local news papers, trade publications, etc. if required and use the prequalification process to weed out undesirable subcontractors. (Tab 32) Finalize construction schedule. b. Have weekly meetings to review portions of drawings to insure against scope creep. Have the subs weigh in on what they see occurring. c. Review final documents for constructability issues, scope creep, compare to cost control log accepted items. Revise drawings as required and resolve any potential cost issues. (Tab 23) d. Prepare Division 1 project manual for final bidding. e. Write scopes of work, identify alternates, unit prices, allowance to be carried. (Tab 25) f. Prebid meetings. (Tab 26) g. Bidding process/addendums. h. Post bid reviews. i. Compare bid amounts to anticipated budget amount. Identify any potential cost issues against GMP documents and resolve. j. Create a master reconciliation using our standardize template comparing the DD/GMP budget to the final CD estimate and reconcile the CCL. (Tab 21) k. Develop an executive summary using our standardized template explaining the variances in the new DD/GM compared to the final CD estimate and list the added scope
5. Construction Drawing Phase: a.
as alternate deducts or on the CCL that can be attached to the owner agreement. (Tab 22) l. Hold a team charrette to review bid deliverable and adjust accordingly. m. Create award recommendation letters. (Tab 30) n. Award subcontracts. o. Turnover meeting to operations (Tab 09)
Description of Tools Available
Initial/Required Set Up Tools
Reference
1 Tab 01 3 Tab 02
Go-No-Go work sheet
Kick of Meeting with Operations
2 Tab 03-01
Projected cost to bid/budget work sheet Leopardo master filing system (folders)
4 J: Drive
5 Tab 03-04
Sample of team staff org. charts
Standard BDR Tools
6 Tab 07 7 Tab 07 8 Tab 07 9 Tab 07 10 Tab 07 11 Tab 07 12 Tab 07 13 Tab 07 14 Tab 07 15 Tab 07 16 Tab 07
Bid Day Recap;
owner recap
sub recap
area summary break down
alternates
awards tab detail tabs
bond calculator
SSSCEI tab (area breakdown work sheet)
Import tab from bid day
Projected profit worksheet
Preconstruction Tools Preconstruction Core Tools (Includes BDR Above)
17 Tab 13-01 18 Tab 08-03
On Screen Take Off
Narrative (Preconstruction template for clarification/exclusions)
19 Tab 20 20 Tab 21 21 Tab 22 22 Tab 14 23 Tab 18
Cost control log
Master reconciliation spread sheet
Executive summary template- To explain variances in budgets
Project schedule
Site Logistics Plan Balance of Preconstruction tools not included below in the section that can apply to both Preconstruction & Hard Bid
24 Tab 30 25 Tab 11
Award Recommendation authorization form templates
Cost Modeling samples (Value Design- VD)
26 Tab 03-05
Bid package strategy template
27 Tab 11 28 Tab 46 29 Tab 25 30 Tab 45 31 Tab 26 32 Tab 23 33 Tab 50 34 Tab 49 35 Tab 12
Analytical tools (identify cost drivers, assembly costs ….etc.)
Confidentiality agreements
Scope of work templates for contract insertion by market/product type
Sample for performance specs when doing a precon project
Preconstruction Prebid meeting sample for subcontractor meetings
Plan review form and sample
Preconstruction cost spread sheet for projects spanning multiple escalation periods
Leopardo Division 1 Project manual and instruction to bidders
Lead feasibility check list
36 Tab 13-03
Spot Dot
37 Tab 56
Cut Sheet Library
38 Tab 13-02
VDC/Sketch up/Assemble
Hard Bid Tools
39 Tab 06-01 40 Tab 06-02 41 Tab 03-02 42 Tab 03-03
Procedures for hard bidding
Hard Bid - becoming more competitive points
Responsibility matrix (internal document)
Suggested agenda for meetings on the responsibility matrix
43 Tab 06-04
Hard Bid Strategies selection sheet
44 Tab 52 45 Tab 08
Finding subs in new geographic location work sheet
Owner proposal template forms (clarifications/exclusions-hard bid)
46 Tab 08-01 47 Tab 08-02
long form
short form
48 Tab 19
Risk management procedures for hard bidding
49 Tab 06-03
Competitor spy forms and instructions
Tools can be used for both Preconstruction & Hard Bid
50 Tab 24 51 Tab 47 52 Tab 10 53 Tab 53 54 Tab 09 55 Tab 33 56 Tab 55 57 Tab 38 58 J: Drive 59 J: Drive 60 Tab 27 61 Tab 28 62 Tab 44 63 Tab 48 64 Tab 31 65 Tab 32 66 Tab 34 67 Tab 52a
Bidding process flow chart during bid time - template
Asphalt escalation/deflation verbiage and work sheets for owner and subcontractor
80% bought meeting agenda
LCI bid requirements package for subcontractors Hard bid & Negotiated work
Project turn over to operations process (agenda and work sheet)
Builders risk quote form
Client - template letters to decline bid opportunity
General conditions staff template for projects spanning more than 1 escalation period template
Leopardo cost library - Hoffman Leopardo cost library - Chicago
Post bid review form template and example
Sample copies of bid tabulation sheets
Strategies to buying/negotiating with subcontractors
Street closure permit fee calculator
Form letters to subs letting them know status of their bid effort/bid results
Subcontractor prequalification form
Bond request form (labor/performance)
Travel cost work sheet for out of area bidding
68 Tab 29
Schedule Indicating Lead Time for Materials and Equipment
69 RDS Server 70 RDS Server
Modelogix- Software
Agtek Earthwork Software
71 Tab 14 72 Tab 18 73 Tab 51 74 Tab 35
Project Schedule Site Logistics Plan Project Safety Plan
RFI log template
Reference Materials
75 Tab 36 76 Tab 37 77 J: Drive 78 Tab 39 79 Tab 40 80 Tab 41 81 Tab 42 82 Tab 43
Factory Mutual Standards - (FM standards' for the various systems)
Labor to material ratio spread sheet
Master OST database for conditions and Instructions for Backing up OST Files
SDI (Subcontractor Default Insurance) presentation
Training manual of different assemblies (sub structure, structure ……..)
Estimating assistant job procedures and description
Renovation Challenges
Becoming more competitive
Tab 01
Go-No Go Assessment
GO/NO-GO ASSESSMENT PROJECT EVALUATION WORKSHEET JOB NAME Big Issues
Score 10 points for each ‘Yes’ and 0 points for each ‘No.’ If your answer is ‘I don’t know’ either score 0 points or do a little research to find out. An asterisk (*) indicates a potential deal buster (a ‘no’ response to any of these questions should raise a red flag).
Yes
No
Enter Pts.
Criteria Question
10 10 10 10 10 10 10 10 10 10 10 10 10 10 10
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 *Do we know that this client is financially stable and has a good business reputation? 0 *Is the Client / Owner’s Rep willing to award to someone other than his/her favorite ? 0 *Do we know the competition and can we compete with them on this project? 0 *Do we have a strong message that will differentiate us from the competition?
0 *Do we know and have relationships with the Client and Decision Makers?
0 *Will we make our minimum fee goals on this project and meet our minimum fee goals?
0 *Is there the possibility of self performing on this project/with this client?
0 Are there future opportunities with this client?
0 Do we know the selection process and is it fair and reasonable?
0 Will the bidding/preconstruction costs be reasonable to pursue this project? 0 Do we have available time in Estimating to legitimately pursue the work?
0 Do we have the proper staff available to execute the work?
0 Contract terms reasonable (no liquidated damages clauses; will pay damage for delay)?
0 Do we have a good existing relationship with the Design Team?
0 The contract does not include any significant delegated design requirements?
0 /150 POINT SUB-TOTAL
Lesser Issues
Score 5 points for each ‘Yes’ and 0 points for each ‘No.’ If your answer is ‘I don’t know’ either
Yes
No
Enter Pts.
Criteria Question
5 5 5 5 5 5 5 5
0 0 0 0 0 0 0 0
0 Is the project within our strategic target markets?
0 Are there future opportunities for similar projects with other clients?
0 Does this project have a high profile? Buzz potential?
0 Is the schedule reasonable?
0 Do we have a successful track record and adequate portfolio with this type of project?
0 Will this project enhance our portfolio for pursuing future work? 0 Is the project within our established geographic region? 0 Is there a design-build delivery opportunity on this project?
0 /40 POINT SUB-TOTAL
0 /190 TOTAL POINTS
Scorecard 145 - 190:
Looks like a very good opportunity. Looks like a very good pursuit. 125 – 140: We have a good chance, but so do other firms. Looks like an above average pursuit. 85 - 120: Probably a NO GO. Needs to be some other reason to pursue this opportunity. < 85: NO GO. Thank the client for inviting us but politely decline the opportunity.
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Tab 02
Kick off Meeting
Estimating/Operations Kick Off Meeting
LCI #: ________________________________________________________ Project: ______________________________________________________ Estimator: ____________________________________________________ Market Leader: ________________________________________________
Standard Project Discussion Points
Y Y Y Y
N N N N
1. Go-no-go review
2. Can we use/set up self perform
3. Project type/market
4. Relationship with end user
5. Who is the owner/decision makers and what are their goals and concerns for the project 6. Who is the architect & engineers/other consultants 7. LCI bid strategy including storyboarding, cost to estimate, estimating team selection, depth of effort, etc. 8. Division 1 logistics, schedule, safety, quality control plan, etc. 9. Review contract terms to maximize profitability (contract terms may not be known at that time) 10. Potential project risks 11. Who is the PX, PM and Supt.
Hard Bid Discussion Points
1. Which other GC’s are bidding 2. Special bid form or requirements
Y Y
N N
3. WBE/MBE /local participation
4. Private or public sector and what are the requirements if public 5. Determine subcontractor list and solicitation 6. Any restriction (MEP subs) typical for existing buildings/Healthcare 7. What is the street saying about the competition, other subs, the project, design team, client, etc.
Y
N
Preconstruction/Negotiated Discussion Points
1. Evaluation of documents (concept, hand sketches, DD, etc.) 2. Identify key sub trades based on operations and client input
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3. Understanding of expectations (level of estimate detail/deliverables)
4. Identify “area summary breakouts” required & alternates (List area summary items)
5. Determine if project needs to be broken into bid packages 6. Determine need & level of VDC involvement 7. Establish OST/hand sketches/sketch up models/product data expectations 8. Types of analytics to be utilized 9. Determine potential list of items to be cost modeled 10. Potential CCL items 11. Work with operations team to create site logistic plans (incorporated with VDC) & schedule 12. Are we using the Leopardo Division Project Manual
Y
N
Y Y
N N
13. Is Agtek to be utilized
14. Which organizational model are we using PX or PX and Preconstruction manager
Signatures:
Estimator
Market Leader
Date
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Tab 03-01
Projected Cost to Bid
Projected Cost to Bid Project
Bid Due Date
Actual Bid Date
Addendums
Project Name
Description
Project #
Estimating
sub total Estimating
sub total PM
Team Lead Est VP
PM/ Div 1
Team
EA
Other TBD
Other
site visit
OH OH OH OH OH OH OH OH OH
0 0 0 0 0 0 0 0 0
develop scope create budget
0 0 0 0 0 0 0
kickoff mtg
Strategy Meeting
Scope Review
sub communication
bid review
bid day
Projected Hours
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Overburden Hours Anticipated Total
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Actual Hours
Projected Totals
Actual Totals
Estimator Cost
0hours x $85.00 0hours x $85.00
$0 $0
Estimator Cost
hours hours
PM Cost
PM Cost
Blueprint/distribution
$1,200
Blueprint/distribution
total projected estimating cost
$1,200
total actual estimating cost
$0
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Tab 03-02
Responsibility Matrix
Responsibility Matrix For Bidding
Date:
Market #:
Project N0:
Project Name:
Estimated Cost to Estimate Project:
Company
Contact
Phone Number
E-Mail Address
Client: Architect: Engineer: CM:
Date
Time
Kick Off Date/Preliminary Review ITB Final Review/Send out to Subcontractors
Project Walk Through
Strategy Meeting/Scope Issues Division # 1 Due/Review
Scope Review
Scopes Out to Subcontractors RFI Cut Off Date
Budget Review
Bids Due by Subcontractors Proposal Due to Owner - FULL RFP Package Regularly Scheduled Team Meetings
Construction Team
Names
Superintendent Project Manager Project PX
Estimating Team
Names
Division Responsible For
Lead Estimator:
NOTES:
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Tab 03-03
Responsibility Matrix Agenda
Leopardo Companies, Inc. Estimating Department Bid Procedures
I.
Market VP/PX Division 1 Responsibilities
All items contained in the division 1 specification section and the invitation to bid including but not limited to the following items below; 1. Assign a project manager and Superintendent to the project. 2. Create a detailed site logistics plan. 3. Develop a schedule. 4. Prepare the general conditions and general requirements estimate complete. Determine with the team if we are going to discount our standard staff billing rates (i.e. management, carpentry, laborer etc.). Refer to the bid strategy for the project or consult with the market VP/PX. 5. Review the owner contract agreement. 6. Obtain bid bonds, letters from surety companies, quotes for builders risk if applicable etc. 7. Review insurance requirements. 8. Review bidders list and assist in the creation/development of bid strategies. 9. Develop EEO strategies/goals if required 10. Determine who the bid runners are and review the proposal documents ahead of time with them. Have the envelopes or packaging for bid documents etc. completed and ready to go. 11. Be part of the bid review and bid day process. 12. Call and or meet with subs that are bidding the project but will not bid to us due to past relationship issues, master contract issues etc. 13. Obtain permit costs (if the permit is provided by owner, but all other permits and fees are by us, provide a cost for these permits/other fees) 14. Bid review of all self performed items of work. 15. Bid review of self performed items of work, logistics, schedule, GC/GR’s, bid forms etc. need to be completed one (1) week prior to the bid due date. 16. Attend all pre-bid meetings and then down load the estimators (given the complexity of the project the estimator may need to attend the pre-bid) Give the lead estimator a copy of the sign in sheets along with any subcontractor information you may have obtained. 17. Inform the bid team of who our competitors are, day time bids are due and any pertinent dates such as RFI cut offs, pre-bid meetings etc. 18. Upon receiving the contract documents create a check list of the required forms and paper work to be submitted with the bid. This check list could include a bid bond, submitting a letter from our surety company indicating we can bond the project, a sample insurance certificate, bid forms, alternates, etc. Have all bid forms etc. requiring signatures signed, corporate sealed and notarized immediately leaving blank any dates to be filled in later in case the project is extended. Prepare any and all items for submission that are to accompany our bid such as uncompleted work statements, financial
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Leopardo Companies, Inc. Estimating Department Bid Procedures
statements, bidder eligibility statements etc. as they apply to the project being bid. Have an exact duplicate proposal book marked “official copy” at the head table in the war room. 19. If the project requires a bid bond, insert the bid bond just inside the cover or top. 20. Interact with marketing department for creation of staff resumes, past project experience, and any other pertinent information required to be submitted along with our bid.
II. When Drawings Come In
1. Assemble the bid team. 2. The lead estimator is to develop the initial bidders list by using the low subcontractor bid report, geographic location of the subcontractors to the project as well as past experience. The EA will then send out the first round of invitations to bid. In addition, the EA will notify the team estimators where the bidders list is located. The estimators are then responsible for reviewing the list and supplementing it accordingly adding recent low subcontractors from past projects that may not be in on the low subcontractor bid report, subcontractors we have new relationships with and to verify that all of the necessary trades have been identified. The EA will send out additional ITB’s as the list becomes finalized. 3. Compare the drawing index against the drawings that were issued to insure we have all of the drawings. Likewise cross reference the specification table of content to the specification sections to make sure we have all of the sections. 4. Create the ITB call list by trade. Review the low sub-list contained on the J:Drive for projects recently bid. In addition, if the project is a Government project you can obtain copies on line of the other subcontractors that have or are working on similar types of projects. Review the list with the department head and Market PX or VP. 5. The lead estimator within a day or two of receiving the bid documents is do a pre-drawing review by taking a set of drawings and with a highlighter circling those items that could be misunderstood, missed, doubled up on, appear confusing or overlooked. These drawings are then to be reviewed with the rest of the team for determining who has what scope. These items should also help to create some of our initial strategies for winning the project. The scope items are then to be included in the trade scope sheets by the respective estimators making sure their sorted out properly as well crafting RFI’s to influence the market. 6. The lead estimator is to do a scope summary of the project to insure that all items have been accounted for during the scope reviews. This bid summary should be shared with the individual estimators ahead of time and coordinated accordingly to eliminate any confusion and to insure the project is being looked at correctly by the sub trade community. This should be done ahead of the review of the documents by the estimating team. The lead estimator is
responsible for scope of work assignments among the various trades. 7. Send out the ITB right away so we make contact with the subs first.
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Leopardo Companies, Inc. Estimating Department Bid Procedures
8. Call every sub. Tell the subs we want their best and final number on bid day or a sharpened pencil price (refer to the bid strategy form filled out for the project) and ask them to call us first. 9. Periodically call the subs to see how their coming on the estimate. Engage them on scope issues. Use this time to build a relationship with them. If they have time invested with you and they feel you know the job well they will feel comfortable that they will do well working with you. This could lead to our getting a better number than our competitors. 10. The EA is to insure that all bid members including the PM receive a full set of documents and any and all addendums. 11. In addition to going to subs that will normally give you a complete price, identify individual subcontractors that will do a portion of the trade item such as ventilation, mechanical piping and temperature control. You can buy them separately and avoid costly markups on second tier subs. Compare your assembled price against your all in sub number to determine the lowest possible cost. 12. Write detailed scopes of work. Fill in whether an item is to be included or not included by placing a “Y” or “N” in the appropriate column. 13. Due a detailed budget on your trades using quantities and unit prices to predetermine the value of the project. 14. The lead estimator is to schedule meetings for scope reviews, budget reviews, project status meetings, strategy sessions, subcontractor coverage, GC/GR reviews including site logistics and bid form reviews etc. 15. The lead estimator is to coordinate reviews of in house estimates and be present at them along with the respective estimator that is handling that trade. 16. Confirm all spec sections are accounted for and are being priced out. 17. Verify that we have received all of the drawing sheets listed in the index and that their dated appropriately. 18. Communicate cut off dates for RFI’s. 19. Review the bid strategy document and agree on the items we are using for the project being bid. Supplement as needed. Look for ways to set the sub market pricing higher so your competitors include items we don’t have too or have the subs increase their numbers by scope items and then once we win the project remove those scope items from their work. (this means we may have to use our in house budget numbers on bid day for certain key trades or have our preferred sub that we have been working with, tell us the value)
III.
War Room
1. Digital camera to take photos of dry erase boards 2. In addition to the estimators working on the project, have two additional people in the room, PM’s or PE’s, as spares to handle last minute scope calls to subs. Depending on the size or complexity of certain trade divisions, PE’s maybe paired up with the individual estimators. Any additional support staff required for the bid effort should be involved with the project a
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Leopardo Companies, Inc. Estimating Department Bid Procedures
day or two ahead of time so they can become familiar with their respective roles. The lead estimator will determine the amount of acclimation time required. 3. Contact the Contract Administrator and notify them of the bid and have them on standby for bid day and the day before. There responsibility is to research (EMR Ratings, Bondable, Financial Stability, etc.) any low contractors that we are not familiar with to help determine our risk in using the subcontractors number. 4. The EA’s are to be stationed in the war room with a laptop and phone. 5. Have a table for each person in the room set up with phone and computers facing the wall to reduce the noise level at the head table. Each estimator should have a copy of their respective contract documents and addendums etc. Each estimator should have a highlight marker for identifying plug numbers. 6. Have a head table in the center of the room towards the front. Have a full size set of drawings, addendums, specs etc. on the table. Have a phone and computer set up 7. The lead estimator is to have his own work station off of the head table with phone and computer. The computer is to be tied into the overhead projector 8. Each work station is to have in big numbers the phone extension posted overhead. 9. All people working in the room are to be trained the day before on how to transfer calls 10. The main switch board operator is to be notified of the project being bid. They are to transfer the unsolicited calls coming in to the designated EA handling the calls. They will then transfer the calls to the correct estimators within the war room. Give the EA a list of divisions that each estimator is responsible for to insure they know who to give the calls to. The estimators are to give the subs bidding their direct phone numbers to minimize the amount of calls going into the main board. 11. The lead EA is to send out an e-mail to the entire company in both offices alerting the staff that we are bidding a project in the event they receive by error any proposals from subs. The stray proposals are to be immediately redirected to the designated EA for distribution by them 12. Notify the receptionists and have them check the Leopardo main company fax every 10 minutes to see if proposals came in. The proposals are to be forwarded to the EA who will then print them out and distribute the appropriate estimator. 13. Have a printer set up in the war room with all of the computers configured to it. 14. Have a phone quote pad at each work station and head table for people to capture and document phone quotes. Tell the sub to follow up immediately with written proposals. 15. Have a large clock in the room stationed near the front all team members can easily see it. 16. In the event the project requires MBE/WBE participation, have a second laptop set up with a projector so members at the head table can do what if scenarios to insure the proper percentages are met. In addition, as it comes closer to closing out the bid, the final MBE/WBE subcontractors and their numbers are to be posted on the laptop as their closed out. 17. Take the printer out hibernation mode or the EA should regularly print something so it doesn’t go into hibernation. 18. Insure that all cable and interface boxes are safely secured from accidental pull outs and from becoming tripping hazards.
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Leopardo Companies, Inc. Estimating Department Bid Procedures
IV.
Runners
1. Depending on the size and complexity of the project and bid forms, have two runners deliver the bid. 2. They should arrive where the bids are due 1 hour before the bids are to be turned in. 3. 2 cell phones should be fully charged. 4. Check the time on the clock in the room where the bids are due and synchronize with the bid team in the war room. 5. Find an area in proximity to where the bids are turned in where you can communicate with the bid team without being overheard. 6. Check for cell phone reception in the area 7. If you’re in an area where you can talk openly without being overheard, one person will talk on the phone instructing the other person what numbers to write. The person who just wrote the numbers will then take the phone and repeat the numbers back while the other person reviews what is being said. If you in an area where you might be overheard, both runners are to be conference in hearing the numbers being given simultaneously. The one will watch to make sure that the numbers are being written down correctly. 8. Runners are to have 2 full sets of bid documents (or more if required for the bid) in case an error is made on the forms or a number changes at the last possible moment. 9. Bid forms are to be reviewed with the runners the day before the estimate is due. You are to review the pages and spaces where the information is to be written. The pages should be tabbed for ease of finding them. Remove the tabs once the bid is completed and closed out. 10. Use a black ink pen. Any changes made to the numbers or information on the bid form that may need to be rewritten or crossed out is to be initialed. 11. If the project is going to be a public bid opening, have a prefilled out spread sheet indicating the bidders and record their numbers as read. Review the numbers with the estimating team via phone afterward. If you are able to sit in the front row, call the war room and leave your cell phone in muted so the people in the war room can hear the numbers as their being read.
V.
Prior to Bid Day
1. If the project has MBE/WBE or EEO requirements, organize a preliminary bid review meeting enough in advance so you can obtain the necessary coverage if you’re short. Run what if scenarios to determine as many possible matrix’s to see how you can meet the requirements and have the lowest possible price. Have the different matrix’s posted in the war room to help with the MBE/WBE strategies. Meet with key MBE/WBE subs well in advance to forge relationships with them to insure that they will bid us and give us the same or better numbers than our competitors. In these situations it isn’t the low number that wins the project but the lowest MBE/WBE combination that wins. Therefore, it is essential to know the premiums the subs are carrying in their numbers if they are the prime sub for second tier
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Leopardo Companies, Inc. Estimating Department Bid Procedures
MBE/WBE participation. You may find you don’t need to increase your price the value of the premium if you can meet the goals without that prime sub or using their MBE/WBE as second tier. When using MBE/WBE subs be aware of the following; A. If the MBE/WBE subcontractor is the prime sub, make sure their certified by one of the approved agencies identified in the front end documents otherwise you cannot use them. If you do use them and their not certified by an approved agency your bid can be protested and thrown out. In addition, make sure their performing the majority of the work. If they are subcontracting out a portion to a non minority you may not be able to claim the full amount of the contract. B. If you are using a prime sub (non minority) to achieve a portion of your goals, you need to make sure their sub is certified by one of the approved agencies. At time of bid you will also need to know their name, what type of work they perform and the exact dollar amount. Do not calculate the amount yourself if the prime sub tells you they have 25% participation. If they take it on the full value of the prime sub amount, they can later tell you it’s based on their total sub cost minus their overhead, fee, bond, insurance etc. That would mean you overstated the dollar amount. Make the subcontractor give you the exact amount. C. If the MBE/WBE is part of joint venture you need to know the amount of their participation in the joint venture. You will only be allowed to use the percentage amount the JV agreement is based on. In example, if it’s a 60% non minority and a 40% minority, you can only claim 40% of the contract. In addition, you need to make sure the MBE/WBE is certified by one of the approved agencies. D. In all cases, make sure the subcontractor is actually certified to perform the work they are quoting you for. There have been cases where the MBE/WBE is quoting work that they are not specifically certified for. If this happens, our competitor can protest our bid and have it thrown out. 2. Select 4 key subcontractors’ for each major sub-trade including MBE/WBE if required. Work closely with them on the phone reviewing scope, schedule, logistics etc. Talk to all the other subs as well to see how their coming on their bid and answer any questions they may have. When selecting your 4 key subs the strategy is to target those subs you think maybe low based on recent experience or subs you may need to satisfy minority requirements. The goal is to make sure these subs give you their best number, hopefully to be able to keep them off the street or to have them give you price protection. Always make sure your working with prime subs as well as minority subs so you can see if there is a premium associated with using the minority firm. This will better assist us in deciding on the best possible MBE/WBE matrix. 3. At least a week before the bids are due, establish a schedule, site logistic plan and close out the general conditions put these numbers as well as our in house self performed numbers into the bid day work sheet. Include any required bonds, insurance etc. quotes as well. 4. Have the lead project estimator, department head and market PX or VP review the bid forms and documents to make sure their all in order.
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Leopardo Companies, Inc. Estimating Department Bid Procedures
5. The EA is responsible for coordinating meals for the team as appropriate. Sequence the arrival of food far enough in advance of when bids are due so as not to become a distraction. (i.e. if bids are due at 2:00PM have the food delivered at 11:00 AM). 6. Have 3 full sets of bid books/bid forms made once approved. One set stays at the head table in the war room and the other full sets go with the runners. You may need more sets depending on the project specific requirements. Books are to be tabbed indicating the pages where information is to be filled in. 7. The lead estimator is to have word files set up for each estimator working on the project by CSI Division so they can type their own qualifications/exclusions. These documents are then to be collected by the EA and merged into one document for the lead estimator to review. The lead estimator is to fully review the final proposal draft along with the PX and head of estimating. 8. Call our competitors from a non company cell phone posing as a subcontractor wanting to send in a bid to verify who is actually bidding and who their estimator is. 9. Call the equipment suppliers a week before the bid goes in to identify any and all subcontractors bidding the project. Add these subcontractors to our scope sheets accordingly. Check the ITB call list. If a sub previously told us they were not bidding but are receiving quotes for materials and equipment it could mean they are bidding but not to us. Contact the lead estimator so the appropriate calls can be placed to the sub to identify why they’re not bidding to us. 10. Identify key strategic subs that we may need to meet with such as MBE/WBE subs or subs that may not want to work with us. Invite them to our office or go to theirs to establish a relationship with them. 11. Give each estimator working on the project file folders for the individual trades they are working on. This will help to keep them organized on bid day. This will also make it easier for someone else to find the proposal information for a subcontractor we may need to scope for the estimator due to time constraints. 12. Lead estimator is to decide when the bid day scopes and budgets are to be cut and pasted into the master bid day spread sheet that will be used on the actual day of the bid. Once the scopes have been cut and pasted, the estimators are to no longer use the bid day sheets in their computers. Any and all changes, revisions, additions etc. are to be manually written in on the bid day scope. This will facilitate the reconciliation of the master bid day with the individual scopes of work by trade. All subcontractors’ names, name of the contact person and any office/cell phone number are to be typed or written in by hand for each sub we are taking numbers from. This will facilitate others being able to scope some of your trades if required. 13. Notify the I.T. department informing them when bid day is. Make sure they have someone on standby in case the system goes down or we need something from them. 14. Don’t let subs off of the phone if we were the first contractor their calling until you clear it with the people at the head table. We may want to cut deals, ask for protection etc.
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