Bidding, Change Orders, Procurement and Profitability

The High Cost of Low Bids: When Contractors Compete on Price, Everyone Loses

Levelset

MARCH 11, 2022

Prioritizing a low bid over contractor performance is a lose-lose procurement strategy. Unfortunately, low bidding is an accepted practice for both owners and contractors alike. Owners will say that focusing on the lowest bid possible ensures they get a good price. Who’s responsible for low-bid procurement?

Bidding

Bidding Cash Flow Contractors Procurement

Job Order Contracting 2021 and Beyond

Job Order Contracting

NOVEMBER 17, 2020

Job Order Contracting 2021 is a competitively bid, firm, fixed-price, indefinite quantity contract, and integrated planning, procurement, and project delivery program for as-needed construction services. If a UPB is properly created it consists of “bare costs” only (no contractor overhead or profit).

Contract

Contract Bidding Procurement CSI

How to survive and overcome inflation and rising construction costs

Lets Build

FEBRUARY 3, 2023

Free eBook: Quick guide to Lean practices for construction professionals 7 ways to minimise the impacts of construction inflation As inflation continues to affect the construction industry worldwide, we must find ways to counteract it or risk losing our already slim profit margins.

Construction

Construction Materials Risk Management

Electrical Estimating Methods (RSMeans) - an exclusive estimating book for electrical estimators & contractors

Construction Cost Estimating

APRIL 5, 2015

With this book the electrical contractors will be able to provide the total cost for materials, labor , overhead and profit precisely. This edition is aimed at revealing recent labor–hour productivities and practices for procuring material prices compliant with legitimate industry standards and most excellent practices.

Estimating

Estimating Electrical Contractors Bidding

Job Order Contract Execution Guide – Sample Template

Job Order Contracting

FEBRUARY 20, 2018

A Job Order Contract Execution Guide is a required element for any successful, best management practice JOC Program. The following template is provide for sample purposes only and should not be used a legally bidding document without through review and modification by appropriate Owner legal counsel. Field Office Expense.

Contract

Contract Organization Change Orders Overhead

Owners – Make your Contractors Happy!

Building Information Management

JUNE 2, 2016

It is owners that provide inaccurate and/or vague project requirements, create/support excessive numbers of change orders, fail to treat their service providers with respect, and lack the requisite ability to implement LEAN construction delivery methods. Best value procurement versus lowest bidder. Share risk and reward.

Contractors

Contractors Procurement Change Orders Budgeting

Is construction a dirty business? If so, what can we do about it?

Construction Marketing Ideas

JANUARY 15, 2016

Last night, at the local Construction Specifications Canada chapter director’s meeting, one member well-connected to the industry, in describing the construction procurement scandal at the city’s major hospital , said that the stories there are reflected in many other places. “It’s a dirty business,” he said.

Bidding

Bidding Procurement Construction Change Orders

Job Order Contracts – A Review of Independent Audits

Job Order Contracting

JANUARY 4, 2017

Contractor’s percentage has declined 31% since program inception, significantly decreasing the likelihood contractors are able to make a profit. The poorly designed SOWs have resulted in numerous change orders and cost overruns, occurring in 91% of the projects we reviewed during our 17-month audit period. Approximately $1.9

Contract

Contract Project Management Consulting Long Beach

What is Job Order Contacting – JOC ? Efficient Project Delivery Methods

Building Information Management

NOVEMBER 6, 2013

– Job Order Contracting (also known as SABER, TOC, DOC, and a form of IPD): A long-term, indefinite delivery indefinite quantity (IDIQ) contract. Reliant on a Unit Price Book (UPB) and competitively-bid coefficient to establish pricing structure. Advantages of Job Order Contracting – JOC – for OWNERS.

Contract

Contract Bidding United States Estimating

Facilities are NOT Commodities – LEAN Best Management Practices

Building Information Management

JANUARY 15, 2016

Experienced owners, contractors, procurement managers, architects, or engineers agree that early and ongoing collaboration among dedicated and experience stakeholders generates the best construction outcomes in terms of quality, timeliness, and maximized return on dollars expended. is simply not doing their job.

Management

Management Renovating Cash Flow Life Cycle

How hard do you really need to work at AEC marketing and business development?

Construction Marketing Ideas

JULY 23, 2016

The Brooks Act rules have helped to avert the desperate fee cutting that results in sloppy documentation and profit-less projects in Canada, for example. However, QBS is a double-edged sword.

Documentation

Documentation Change Orders Organization Procurement

Every Owner Should Implement JOC – JOB ORDER CONTRACTING – for Renovation, Repair, Sustainabilty, and Maintenance Construction Projects

Building Information Management

APRIL 10, 2015

What’s Wrong with Design Bid Build? Traditional design-bid-build,DBB, is costly, antagonistic, and simply inefficient. A Job Order Contracting (JOC) system is based on a competitively bid indefinite delivery-indefinite quantity (IDIQ) contract between a facility owner and a construction contractor.

Contract

Contract Renovating Bidding Construction

Lean Construction – Overcoming decades of mistrust, lack of communication, and opposition between facilities owners, designers, engineers, and builders.

Job Order Contracting

JULY 29, 2021

Design-Bid-Build. Traditional design-bid-build (DBB) delivery process with design, bidding, and construction in separate, sequential steps. Construction contract is generally awarded to the lowest bidder and/or lowest qualified builder, who then utilizes the subcontractors included in his or her bid. Advantages.

Design

Design Bidding Engineering Construction

Using RSMeans Cost Data for Job Order Contracting – JOC – October 2013

Building Information Management

NOVEMBER 6, 2013

Owners have reams of rules and regulations to follow in order to put a project out for bid fairly. Job Order Contracting offers an alternative to traditional bidding processes. Federal acquisition regulations require a lengthy process of design, bidding and award for all contracts above a certain dollar amount.

Contract

Contract United States Estimating Bidding

8 Tips to Manage Cash Flow Like Your Construction Business Depends on It

Autodesk Construction Cloud

JANUARY 19, 2022

To successfully grow, construction firms need to effectively manage cash flow to procure materials, pay vendors and salaries, fund new projects, and finance other day-to-day business operations. The real problem is that poor cash flow management can be disastrous…impacting your project schedules, profitability, and relationships.

Cash Flow

Cash Flow Management Profitability Change Orders

Job Order Contracting Review Best Management Practices 2019

Job Order Contracting

JULY 21, 2019

What Is Job Order Contracting? Job order contracting is a LEAN construction planning, procurement, and delivery methods. Procurement costs, project delivery times, overall construction costs, changes orders, and legal disputes can all be mitigated via properly established and managed JOC Programs.

Contract

Contract Management Procurement Change Orders

Construction Budgeting 101

Autodesk Construction Cloud

NOVEMBER 17, 2021

Ultimately, an inadequate construction budget leads to cost overruns, wasted time, and lower profit margins. You’ll walk away with a solid grasp of budgeting fundamentals, along with tips to help you maintain strong profit margins throughout the lifecycle of your projects. Change order errors. Construction budget basics.

Budgeting

Budgeting Budget Construction Estimating

Job Order Contracting – Review of Best Management Practices 2019

Job Order Contracting

JULY 21, 2019

What Is Job Order Contracting? Job order contracting is a LEAN construction planning, procurement, and delivery methods. Procurement costs, project delivery times, overall construction costs, changes orders, and legal disputes can all be mitigated via properly established and managed JOC Programs.

Contract

Contract Management Procurement Change Orders

CULTURE, TECHNOLOGY/SOCIAL MEDIA, & BIM

Building Information Management

JUNE 8, 2015

The adversarial aspects of the traditional design-bid-build. project with a reasonable profit margin. The importance of collaboration among all stakeholders. Advantages typically associated with JOC – Job Order Contracting Program include; 1. Low overhead cost of construction procurement and delivery.

BIM

BIM Life Cycle Contract Environment

Job Order Contracting – 2015

Building Information Management

JULY 16, 2015

Job order contracting (JOC) is a way for organizations to get numerous, commonly encountered construction projects done quickly and easily through multi-year contracts. A designated non-profit organization dedicated to education and best practices was formed in 1995 to serve as a resource for information. Elimination of change orders.

Contract

Contract Contractors Bidding Procurement

Rory Woolsey's Construction Estimating Blog: Just Trust Me!

Rory Woolsey

MARCH 10, 2012

The question is: How are contractors impacted by these changes and what actions can they take to be more competitive and thrive (with some it is a matter of survive) in the current economy? Too often the low bid winner would prove to be the contractor that made the most mistakes in their bid. Share to Twitter Share to Facebook.

Estimating

Estimating Bidding Organization Construction

Job Order Contracting – Best Practices Implementation

Building Information Management

APRIL 24, 2016

Job Order Contracting enables a pre-qualified contractor(s) to perform repair, renovation, or minor construction of a facility or other form of built structure based on pre-described and pre-priced tasks as defined within a Unit Price Book – UPB. Job Orders / Task Orders. Non-Pre-Priced Work.

Contract

Contract Contractors Materials Site

Professional Constructor Central

The High Cost of Low Bids: When Contractors Compete on Price, Everyone Loses

Job Order Contracting 2021 and Beyond

Trending Sources

How to survive and overcome inflation and rising construction costs

Electrical Estimating Methods (RSMeans) - an exclusive estimating book for electrical estimators & contractors

Job Order Contract Execution Guide – Sample Template

Owners – Make your Contractors Happy!

Is construction a dirty business? If so, what can we do about it?

Job Order Contracts – A Review of Independent Audits

What is Job Order Contacting – JOC ? Efficient Project Delivery Methods

Facilities are NOT Commodities – LEAN Best Management Practices

How hard do you really need to work at AEC marketing and business development?

Every Owner Should Implement JOC – JOB ORDER CONTRACTING – for Renovation, Repair, Sustainabilty, and Maintenance Construction Projects

Lean Construction – Overcoming decades of mistrust, lack of communication, and opposition between facilities owners, designers, engineers, and builders.

Using RSMeans Cost Data for Job Order Contracting – JOC – October 2013

8 Tips to Manage Cash Flow Like Your Construction Business Depends on It

Job Order Contracting Review Best Management Practices 2019

Construction Budgeting 101

Job Order Contracting – Review of Best Management Practices 2019

CULTURE, TECHNOLOGY/SOCIAL MEDIA, & BIM

Job Order Contracting – 2015

Rory Woolsey's Construction Estimating Blog: Just Trust Me!

Job Order Contracting – Best Practices Implementation

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