Bid package

[john_hartman]

Hi all,

I have been invited to be one of two company's to bid on a "whole house project". Everything from the kitchen, built-ins, office, library, bar, home theatre, vanites, etc... I'm viewing this as a career changing opportunity as it partners me with a high end architect and builder.

I am looking for any advise which many be relevant to such a project. Also any ideas on the best/expected way to present the bid package.

I plan on including a nice cover letter, construction methods, materials/ hardware to be used with documentation, diagrams of cabinetry, full description of each project with costs, client references with photos of completed projects and hand delivered to both the architect and builder with door samples. Comments or thoughts welcome..:)

[bleeth]

A professional proposal to a builder usually takes the form of a letter on company letterhead.
Date
To:
RE:
Dear...

The first paragraph says you are pricing the job based on the plans (bid set, construction set etc) by_____ dated______, and specifications within or seperate.
Our pricing is based on the following scope:
Then I use an outline form to put in all of the scope.
eg: Kitchen: Wood base and upper casework and granite countertop. You can define lineal footage here but it is not necessary. Sometimes I make the items further outline and sometimes a sentence.
I usually do all the casework first and then do the millwork (doors, standing and running trim, etc.

Drawings by me are only done upon receiving a letter of intent or contract. You should be pricing based on the plans. If the plans are incomplete than price based on how you see the scope items and be more specific in your description. They have an architect and it is his job to design and specify materials, finishes, etc. You are simply listing them all to verify that you have all the scope. Things like crown, if they don't show dimensions should be given by you so you don't price 4" and they expect 6".
If you give door samples you may never get them back! If they don't have design specified or drawn exactly you should send pictures and note these are representative of what is avbailable at base bid pricing and let them know final pricing will be based on specific choices and are subject to change. You sure don't want them expecting Cherry if you are pricing Maple.
I will then say something like "This project is based on the following conditions:
1. All casework AWI Premium grade standards using flush overlay Euro construction
2. All cabinets to be pre-finished maple plywood (or whatever)
3. All cabinet doors to be 5-part raised panel stile and rail construction of (wood species) with (finish)

Then if there are any alternates I list them.

I will continue with drawer construction, countertop construction, etc

I list all hardware to be used and in the case of residences usually handles or pulls are not yet selected and I note either handles to be from a selection of______________ or Owner to select handles with an allowance of X$ each

I end with a few items about cleaning up after ourselves, submittals to be made, co-operating with other trades etc and finally:
All in wall-blocking, plumbing, and electrical work by others.

I then give the total price including sales tax.
Then I list alternate pricing.

I then end with a line about looking forward to working with them on this project and to contact me with any questions.


I never, and neither do most companies that I know of, break out line item pricing unless specifically requested to do so.

[Gary Campbell]

John...
All that Dave mentions AND read and adhere to the specs. Do not price "as per your normal" and then try to change the Architect to your methods. You may list, as Dave mentions, your contruction methods as a cost saving or "value engineering" alternative.

[kevin]

Hi John,
I don't offer any advice because I don't know all of the specifics but just take a long hard look at this. I had somebody come by the shop a year ago with almost the exact same description. The thing was the project would have taken almost 6 months. What I did was phoned up the owner who wanted to hire me and told her the price of the kitchen and you could have heard a pin drop at the other end. They never called me back. You have to ask yourself if these guys are going to wait for you and do you have a big enough shop to deliver the project in a timely manner. I had another project, restauration of a 200 year old building. I bid $375.000. they nearly flipped out and to this date, 3 years later, the project still is not done.
Dave is right about the letter but tread very carefully because a lot of times, when they start getting construction delays, these builders and architects just do not take responsibility for their projects. You are the last one in so they will blame you. You want to make sure that construction delays are not your resposibility and get that in writing.
The other thing is they probably want you to finance it. Can you feel your stress level going up right about now?
Personally, I am concentrating on high-end kitchens. I do my own design. I deal with the homeowner and get 40%-40% and 20%. And I am starting to have the time of my life. The bills are paid. I am getting a bit of a swagger now. There are major projects in our area now. Unless I had 5 or 10 guys, I would stay away. Good luck. Every area is different but these guys, architects and builders, know all the ins and outs. Like how to delay payments and how to do roll backs and a lot of times they find shops that are just starting out because they know that you will be a little hungry and they have gone over on the construction and this is how they try to save. This is not advice just experience.
Also I have been quiet lately on posting due to the fact that I am doing five projects and ended up installing for about one month. Also my shop has myself and only 2 full time employees because 1 just quit.
Kevin
www.kdunphy.com (http://www.kdunphy.com)

[bleeth]

Kevin brought up a couple of very important points. Waiting for money on commercial projects (and anytime you are working for the contractor it is a commercial project whether it is a house or not) can be a real challenge since the billing terms in the contract are usually for you to bill monthly on completed work and then get paid when the contractor is paid. That being siad, it is easier lately to get deposits and different terms on custom jobs of this nature and you should put your payment terms in the proposal. I will usually discuss this before I bid a job if I need or expect a deposit or early payments.
The schedule should be part of the contract and ther contracts usually read that delays not caused by you are not chargeable to you, but the amount of time to fabricate after it is possible to take field dimensions can often be pretty abbreviated. Since on this type of job there usually is not much you can build before field dimensions you need to estimate fabrication time carefully. Also larger jobs take longer to install. When you start hitting these types of projects you immediately discover that despite all media hype to the contrary, there aren't that many craftsman who can do things to your standards out there available.
Between finding them, becoming their surrogate parent, and making sure they are paid every week, you lose a lot of sleep.

[john_hartman]

Well that sounds about right. Many great points that I will certianly use. I greatly appreciate the input and will come back with a few more questions as I digest all of this a bit further during the week.

[gc3]

Good for you and good luck. That being said if these guys are "hign end" as you say then there must have been other shops at some point who worked for them, I would try to find out which ones and how were those shops treated by the "hign end" guys. BTDT and it can be a PITA when too many parties start to get involved...Arq. made changes, wife doesn't like this or that, builder forgot to mention this/that change in the plans, husband out of town so $ will be a few days late...ect, ect, ect. :eek: