What it means
In a typical tender, the owner issues a bid package to several contractors, who price the work by a set date. Bids are compared, usually on price and qualifications, and the contract is awarded. The model works best when the design is complete and the scope is clear.
Public owners are often required to tender, while private owners can choose.
Why it matters
Tendering can produce competitive prices, but it separates design from construction, so the builder sees the project only after the design is done. Problems of cost, buildability or schedule can come up late. Low bids that leave out work can lead to change orders later.
Owners should compare bids line by line, not just by total.
How HSM handles it
HSM can price tendered work, and we also offer alternatives such as negotiated and design-build approaches that involve us earlier. When we bid, we state our assumptions, name our self-performed trades and clarify exclusions, so that our price can be compared fairly with others.
Because our electrical, mechanical and other crews are our own, our bids rest on firsthand labour costs, not on numbers passed up from many subcontract quotes. If the drawings have gaps, we raise them through formal questions during the bid period.
What to plan for
Allow enough time for bidding, particularly if specialty equipment is involved. A rushed bid period leads to padded numbers and missed items.
Ask what happens if a bid comes in over budget. Having a plan, such as a value engineering round, saves time if the numbers are higher than expected.