\n
![\"\"](\"https:\/\/sjcivil.com\/wp-content\/uploads\/2018\/12\/helloquence-5fNmWej4tAA-unsplash.jpg\")
<\/strong><\/h3>\n<\/div>\n <\/p>\n
Probably the first variable to evaluate when making a determination as to whether to bid a job is the client.<\/p>\n
Consider the following with new clients:<\/p>\n
\n- Is this client litigious?<\/strong>\u00a0Other colleagues in the business may have had bad experiences with this client, or perhaps this agency has been on the news tangled up\u00a0with other parties over legal matters.<\/li>\n
- Is this client financially secure?<\/strong>\u00a0Construction is an expensive business. Changes can be very costly. If there exists a significant and legitimate claim, know ahead of time that the client can afford it.<\/li>\n
- Who is the top executive for the client?<\/strong>\u00a0Find out who the executive would be should the matter ever go to mediation, arbitration or even to trial. Knowing the attitude of this person is critical. Whether they are friendly or adversarial toward contractors likely shapes the responses provided along the way during the negotiation of the dispute.<\/li>\n
- Does the client want this project?<\/strong>\u00a0The agency\u2019s heart may not be in the job if a third party (such as a state or federal government department) is mandating the project. Be wary of these jobs; the owner can be bitter and it may affect a contractor\u2019s ability to be successful.<\/li>\n<\/ul>\n
Evaluate the Project and its \u2018Rules\u2019<\/strong><\/h4>\nReview the project and its \u201crules\u201d (i.e., the contract):<\/p>\n
\n- Contract terms.<\/strong>\u00a0With a new client or new contract, hire an attorney to perform a quick review of what pros and cons exist in the contract. At a minimum, the construction professional can review the contract for payment terms (pay when paid, pay if paid, paid net 30, paid on or about 25 days after receipt by owner, etc.), bonding requirements, insurance minimums, differing site conditions and overreaching indemnity clauses.<\/li>\n
- Subsurface conditions.<\/strong>\u00a0If the scope of work involves underground construction, it\u2019s vital to confirm whether\u00a0there is a differing site conditions clause.<\/li>\n
- Weather issues.<\/strong>\u00a0Ensure that the weather permits the scope of work to be completed at that time of year. Temperature and precipitation claims are difficult.<\/li>\n
- Scheduling constraints.<\/strong>\u00a0Compressed schedules require additional cost in overtime, labor inefficiencies, or even contingencies for liquidated damages. If none of these is desirable, then perhaps this is not a project to bid.<\/li>\n<\/ul>\n
Evaluate the Client\u2019s Project Management Team<\/strong><\/h4>\nAlthough bidding work to certain owners or general contractors may seem to be nearly fail safe, frequently project success is controlled by the staff at the project level.<\/p>\n
Know the following about the management team:<\/p>\n
\n- Do they have experience in this type of work?<\/strong>\u00a0If this is a heavy engineering project like a dam or deep utilities, the project should be run by an engineer versus an architect. It often hurts the project when the client representative knows nothing of the work.<\/li>\n
- Is there a sense of urgency among\u00a0the personnel?<\/strong>\u00a0Whenever\u00a0a question is posed to the client, the time it takes to receive the answer is costing the contractor money. Bad, but prompt, direction from the client can be better than a protracted response.<\/li>\n
- Is the project management team experienced (via\u00a0education or experience)?<\/strong>\u00a0Many of the challenges contractors face require field experience to fix. A good project has staff from a university and the school of hard knocks.<\/li>\n
- Is the project management team internal or external?<\/strong>\u00a0If the project management team is internal to the owner, there has been at least one level of decision-making removed from the process, which is probably good. The bad thing may be that decision-makers must take direct responsibility for issues and the absence of an external management team removes any buffer. If the project management team is external, it is always good to know what may motivate them in their management of the contractor. They may be paid on a time and materials basis, which gives them no incentive to allow early completion of the project. Also, if their contract is a function of the contract value at the conclusion of the project, it is likely that change order resolution will be difficult.<\/li>\n<\/ul>\n
The best way to avoid a claim is to never have one. Take the time to evaluate whether the project is prone to a claim before submitting the proposal.<\/p>\n
Read the original article in Construction Executive\u00a0here<\/a>.<\/p>\nWork Safe!<\/strong><\/h4>\n <\/p>\n
Evaluate the Project and its \u2018Rules\u2019<\/strong><\/h4>\nReview the project and its \u201crules\u201d (i.e., the contract):<\/p>\n
\n- Contract terms.<\/strong>\u00a0With a new client or new contract, hire an attorney to perform a quick review of what pros and cons exist in the contract. At a minimum, the construction professional can review the contract for payment terms (pay when paid, pay if paid, paid net 30, paid on or about 25 days after receipt by owner, etc.), bonding requirements, insurance minimums, differing site conditions and overreaching indemnity clauses.<\/li>\n
- Subsurface conditions.<\/strong>\u00a0If the scope of work involves underground construction, it\u2019s vital to confirm whether\u00a0there is a differing site conditions clause.<\/li>\n
- Weather issues.<\/strong>\u00a0Ensure that the weather permits the scope of work to be completed at that time of year. Temperature and precipitation claims are difficult.<\/li>\n
- Scheduling constraints.<\/strong>\u00a0Compressed schedules require additional cost in overtime, labor inefficiencies, or even contingencies for liquidated damages. If none of these is desirable, then perhaps this is not a project to bid.<\/li>\n<\/ul>\n
Evaluate the Client\u2019s Project Management Team<\/strong><\/h4>\nAlthough bidding work to certain owners or general contractors may seem to be nearly fail safe, frequently project success is controlled by the staff at the project level.<\/p>\n
Know the following about the management team:<\/p>\n
\n- Do they have experience in this type of work?<\/strong>\u00a0If this is a heavy engineering project like a dam or deep utilities, the project should be run by an engineer versus an architect. It often hurts the project when the client representative knows nothing of the work.<\/li>\n
- Is there a sense of urgency among\u00a0the personnel?<\/strong>\u00a0Whenever\u00a0a question is posed to the client, the time it takes to receive the answer is costing the contractor money. Bad, but prompt, direction from the client can be better than a protracted response.<\/li>\n
- Is the project management team experienced (via\u00a0education or experience)?<\/strong>\u00a0Many of the challenges contractors face require field experience to fix. A good project has staff from a university and the school of hard knocks.<\/li>\n
- Is the project management team internal or external?<\/strong>\u00a0If the project management team is internal to the owner, there has been at least one level of decision-making removed from the process, which is probably good. The bad thing may be that decision-makers must take direct responsibility for issues and the absence of an external management team removes any buffer. If the project management team is external, it is always good to know what may motivate them in their management of the contractor. They may be paid on a time and materials basis, which gives them no incentive to allow early completion of the project. Also, if their contract is a function of the contract value at the conclusion of the project, it is likely that change order resolution will be difficult.<\/li>\n<\/ul>\n
The best way to avoid a claim is to never have one. Take the time to evaluate whether the project is prone to a claim before submitting the proposal.<\/p>\n
Read the original article in Construction Executive\u00a0here<\/a>.<\/p>\nWork Safe!<\/strong><\/h4>\n <\/p>\n
Evaluate the Client\u2019s Project Management Team<\/strong><\/h4>\nAlthough bidding work to certain owners or general contractors may seem to be nearly fail safe, frequently project success is controlled by the staff at the project level.<\/p>\n
Know the following about the management team:<\/p>\n
\n- Do they have experience in this type of work?<\/strong>\u00a0If this is a heavy engineering project like a dam or deep utilities, the project should be run by an engineer versus an architect. It often hurts the project when the client representative knows nothing of the work.<\/li>\n
- Is there a sense of urgency among\u00a0the personnel?<\/strong>\u00a0Whenever\u00a0a question is posed to the client, the time it takes to receive the answer is costing the contractor money. Bad, but prompt, direction from the client can be better than a protracted response.<\/li>\n
- Is the project management team experienced (via\u00a0education or experience)?<\/strong>\u00a0Many of the challenges contractors face require field experience to fix. A good project has staff from a university and the school of hard knocks.<\/li>\n
- Is the project management team internal or external?<\/strong>\u00a0If the project management team is internal to the owner, there has been at least one level of decision-making removed from the process, which is probably good. The bad thing may be that decision-makers must take direct responsibility for issues and the absence of an external management team removes any buffer. If the project management team is external, it is always good to know what may motivate them in their management of the contractor. They may be paid on a time and materials basis, which gives them no incentive to allow early completion of the project. Also, if their contract is a function of the contract value at the conclusion of the project, it is likely that change order resolution will be difficult.<\/li>\n<\/ul>\n
The best way to avoid a claim is to never have one. Take the time to evaluate whether the project is prone to a claim before submitting the proposal.<\/p>\n
Read the original article in Construction Executive\u00a0here<\/a>.<\/p>\nWork Safe!<\/strong><\/h4>\n <\/p>\n
The best way to avoid a claim is to never have one. Take the time to evaluate whether the project is prone to a claim before submitting the proposal.<\/p>\n
Read the original article in Construction Executive\u00a0here<\/a>.<\/p>\n <\/p>\nWork Safe!<\/strong><\/h4>\n