Commercial real estate capital projects benefit enormously from diligent planning. Given the long timelines and large costs involved, real estate teams owe it to their stakeholders to dedicate meaningful time toward careful preparation.
Here's a comprehensive checklist for preparing your bid package and bid forms.
Bid Package Documentation
RFP Document: Rules and procedures for the bid process, including team roster, key dates, and terms and conditions.
Bid Documents: Drawings and specifications prepared by your team and architect/consultant detailing what the job entails.
Form Contract: Your standard contract so bidders can review terms before submitting pricing.
Building Rules and Regulations: Compliance requirements bidders need to know from the start.
Insurance Requirements: Share early so bidders can ensure appropriate coverage.
Approved Subcontractor List: If you maintain an approved sub list, include it for estimating purposes.
Site Photos/Scope Narrative: For smaller jobs, photos and a written scope description may suffice.
Bid Form Preparation
Reference bid forms from past comparable projects as a starting point. Consult with colleagues or your consultant team for complex or technical jobs like facade restoration or infrastructure projects.
If the scope is too unique for an existing template, have contractors submit in whatever format makes sense. You'll spend more time leveling, but you'll still get the information you need.
Setting the Right Detail Level
Include as much detail as possible to make leveling easier and catch missing information. But balance this with bidders' capacity to thoroughly complete the form.
Consider splitting scopes of work. A bathroom renovation and office buildout may warrant separate bid forms for more precise analysis.
Using Standard Format
Follow CSI MasterFormat structure to reduce misunderstanding. Not every cost category needs to be used, but the overall structure is widely understood. Since architects use CSI codes in their plans, using descriptions alone (without numerical codes) typically works fine.
Including Markups
For most jobs, break out General Conditions, Insurance, and Overhead & Profit. Depending on local jurisdiction, you may also include Permits or Tax.
Adding Alternates and Unit Prices
Explore pricing impact of different options by including alternates. This delays final decisions until you have clarity on costs. Whether selected alternates are included in the contract or added as change orders, the price gets locked during bidding.
Unit prices are helpful when scope may change. Pricing per installed fixture, for example, creates a basis for future change orders without negotiation risk.
