E. Review schedule considerations and explain what they can expect job conditions to be F. Go over logistical items, explain lay down and staging areas G. See if you can package projects H. Demonstrate you know a lot about the project. Subs will be more comfortable reducing their price because you know the job well including its challenges etc. I. Don’t be afraid to negotiate with a sub that has the low price. Understand why they have the low price. J. Always have a fallback position. K. Always get something back even if they can’t move on price (everything is negotiable). L. Standard lines; if I had to award the job today you wouldn’t be the successful bidder (show them that your trying to help them win), even if their low- I’m paying a premium for you, in return get some of the commitments above from them, if during the negotiations they still can’t achieve the number you need, you can let them think they have lost the job. Then have your fallback person call them. M. Break the package apart N. Round down O. Solicit additional numbers from the marketplace. P. Make sure you captured all numbers from the original bidders Q. Negotiating is an art. People feel more comfortable negotiating with friendly out going people 2. Negotiated work; - negotiated projects usually have lower fees and opportunities for profitability may be reduced by some of the contract terms mentioned above. In most cases depending on the contract provisions we are more concerned with managing risk while maximizing profitability. A. Package trades as part of the bid strategy to reduce your general conditions and supervision B. Depending on who regulates the contingency/buyout, build allowances into the trades C. Buy general requirements/ weather protection from subs D. Buy in utility costs from subs E. If there is a savings split, use the appropriate strategies under the hard bid section F. Use best in class subs to minimize schedule/quality issues G. Differentiate between construction contingency, design contingency, difference in trade cost versus market and escalations H. Build and establish an appropriately conservative GMP amount I. Maximize self perform opportunities J. Do to risk factors if the owner is receiving 100% of the buy then don’t buy hard unless the money goes into a contingency that is returned at the end of the project and we have control over how it is spent
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