Commercial Bidding

John Deere

I am trying to step into the commercial side of construction, but I dont know what kind of format to use for bidding. My residential proposals were just typed up on a word processor listing the scope, but I don't think that format will be good for the $30M dollar project I am aiming for now..Can anyone assist me with some tips, or maybe even some type of template? Thanks!!

RPortinga

If you don't already have the systems in place... I don't know that you could handle a $3million project, let alone $30.

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Rob Portinga - Bauer Bros. Construction, Inc.
Design/Build - General Contractor - Construction Management

hbelectric

Lol

John Deere

I appreciate your opinion, but thats not what I am asking for..I definately have everything in place except for the administrative part. I am not new to the industry by any means.

RPortinga

I'm not trying to be a smart-ass... but to take on a $30million dollar deal out of the gate for a commercial project... doesn't make sense.

There are similarities from Residential ... but there are just as many differences.

And a project like that, the developer has probably already decided how they want their bids presented.

Most larger corporations have their own bid sheets.

They typically want a lump sum and want to see things broken down by division, including your general conditions. Spell out your inclusions and exclusions... your assumptions... and clarifications.

We're doing work for Buffets, Inc., remodels of their OCB chain, and even for these jobs that are less than $100k, they have their own bid sheet broken down by the scope of work for each trade.

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Rob Portinga - Bauer Bros. Construction, Inc.
Design/Build - General Contractor - Construction Management

John Deere

The project is being funded by a private investor, who I am directly in contact with. I have met with him and walked the site, received the prints and the scope, but he did not have a specific bid sheet. I assumed he would have one. This is why I was wondering if there may be something universal, or if I should simply itemize the scope on a spreadsheet??

Kaiser

Why don't you ask him how specific he wants you to be. I have seen it done any number of ways. From one lump some to acount for every screw.

This is really a minor issue. A project of that size is going to require a full time administrator for all of the paperwork. RFI'S, Submittles, MSDS, Pay apps.ect.

If this is your first Commercial Project I would suggest getting a experianced Commercial Project Manger. These thing can become a real nightmare if you don't have all of your ducks in a row.

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RizzoMaryland

30 million dollar commercial job? Private Investor? Walked around with the investor himself? No pre-bid meeting to discuss pre-construction procedure?

Something doesn't seem right here.

Typically when bidding on a job of this size you would be presented with a scope of work the size of a phone book that would spell out every detail involved (??).

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"An idea is salvation by imagination"
Frank LLoyd Wright

John Deere

I appreciate the advise...anyone with a lot of experience in this scale is more than welcome to throw in a few words of advise for what I may need to account for..Like I said, I am definately not new to this, but I am shooting for the moon on this project, so any helpful advise would be much appreciated

nap

start with a much smaller job.

what is the biggest resi job you have done?

I'm with Rizzo on this one. What you have provided so far just doesn't add up.

plazaman

for a 30 mil project, be prepared to finance a good portion of that. commercial have crazy draw times. At any point, you could be financing 100-300k until the next draw. Dont count on waiting for the next draw to pay subs. Most of these jobs have deadlines that must be met. You cannot holdup the job because of lack of money.

For a 30 million commercial project, im pretty sure you cannot get away with private help. Most likely its going to be union. Be prepared to use all union subs, and crews. I cant imagine in NYC where i live that a 30 million project is going on with only private help. It has to be union or else that big rat is in front the building.

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Westchester Remodeling Contractor
Hartsdale Remodeling Contractor
Ardsley Remodeling Contractor

osborn

For a $30 mill job I would hire a experienced project manager.

Justbuilding

I'll say this, You, sir have guts.
First one out the gate at 30 mil, are you aware that you could easily lose 60?
Ok, astonishment aside, Is there a RFP (request for proposal) out? or is this investor just giving you the job without getting bids? The RFP usually spells out how they the proposal presented, sometimes down to the number of pages, single sided or double sided (don't laugh, it counts-- how well can you read and follow instructions).
So no, there isn't a universal template. The client decides what is important to them in how the proposal is presented. One time we presented a proposal that was bound with hemp rope and twigs. Corny perhaps but the client was concerned about being as environmentally friendly throughout the building process. We showed we knew what was important to them, how we would incorporate their values into our building process and give them what they wanted. It worked.
I don't care who this guy is unless he is your rich uncle, you are presenting to more then the investor. The architect, the end user, and maybe 10 other people.

Read the spec book, the first couple of divisions that deal with the RFI's, submittal process, payment.
You are going to have to get the answers to your questions locally.

For $30 million, my company is interested in the job!

You probably are a very good residential contractor, congratulations. You are entering water where the big sharks get eaten by bigger sharks.
Tread carefully.

chris klee

While at W-T we have taken over jobs after smaller guys tried to do them. it usually pays pretty well and then there is one less contractor to compete with.

Most jobs that big will use AIA documents. have fun

Bob Kovacs

While I share everyone else's concern over you biting off more than you can chew, I'll answer your original question.

If they haven't provided a bid form, I'd just put together a simple proposal like you've done on residential projects. State your price, state what documents the price is based on, and list any specific exclusions, assumptions, and qualifications as you see fit. The proposal won't become a binding contract- only the big fat contract that you're going to sign will, and it will essentially replace your proposal.

Gook luck,

Bob

nap

have you never heard of bid bonds? If a bid bond is required, the bid does become a binding contract and rescission of the bid after acceptance will cause the bid bond to be forfeit.

Bob Kovacs

Um, yes, I have heard of bid bonds. However, seeing how there's not even a bid form for this job, it's obviously being handled in a rather half-assed manner, so the chances of a bid bond being required are pretty slim. Not to mention, unless the OP has a large chunk of cash sitting around someplace, no bonding company will issue him a bid bond for a $30 million project anyway.

AtlanticWBConst

IMHO: For a 30 mill project, I'd be sitting down with our business attorney and discussing everything that we should have in writing & documentation. I'd probably be spending more time attempting to develope an iron-clad.... business, payments, finance, & project managment plan,.....than the actual construction. Construction is generally routine, protecting your business and your self is not.

bob kovacks hits the nail on the head. A project of that scope should be handled in a much more detailed manner. More so, than simply a bid and a handshake.

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Mike Finley

What's the relationship between yourself and the developer? Dad? Father-in-law?

Who puts 30 million dollars at risk with an unknown?

hbelectric

Let me see how this will work. You underbid the job, you end up walking away. He get's weeks, months worth of free labor/materials.

Luckily in the past, i've had a GC not accept a bid from me, because i totally screwed it up. I've also lost a job, because a GC accepted a bad bid.

Let's just say the bid was equal to my parts list, $500k. Electric for 40 condo units, with 2 story parking, downtown beverly hills. Every light fixture $1,000-15,000 and all commericial wired. NOT POSSIBLE!