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TAKING IT ALL IN BEFORE YOU TAKE-OFF Presented by Kathy McCauley October 10, 2014
Introduction “Estimating” – but not quantity take-off Quantity take-off at entry level position Understand the entire project Perspective from mid-size company Applies to competition proposal!!
Other Sessions Labor Cost –Local 638 New York General Conditions –Costs beyond QTO Relationships –Might be what gets the job Your First Job –Bring value
What to Do First Documents tell a story “Project Manage” the proposal and estimate Put the steps in order
Read the RFP Review All of the Drawings Decide “Bid” or “No Bid” Read the Project Manual Send RFP’s to Suppliers and Subs Site Visit Send Pre-bid RFI’s Draft the Scope Letter
QUANTITY TAKE-OFF !!!
Pricing Extensions Bid Cost Summary Fill Out Bid Forms Determine Mark-up Write Final Scope Letter Submit the Proposal Follow-up on the Proposal!
“Bid” or “No Bid” Who makes the decision? What are the challenges/opportunities? Why not bid every opportunity???
“Bid” or “No Bid” – Scenario 1 16 locations – drug store chain clinics Many tasks – 1 worker less than 8 hours GC can’t predict OT tasks Up to 2 hours between sites What to do about mark-up?
“Bid” or “No Bid” – Scenario 2 Remove/replace 21 RTU’s 2 day turn around Schematic drawings 2 nd opportunity – 1 week turn around Site visit – phased project –21 RTU’s and 97 fans
“Bid” or “No Bid” – Scenario 3 Design/assist 80% docs – downtown bar Difficult crane pick Schedule unknown Does GC have the job? Permit review process not complete!
“Bid” or “No Bid” – Scenario 4 Food Plant Expansion Budget Design Narrative – Schematic Drawings Addendum issued on bid day Only one bidder per trade Extent of final scope based on budget $
Who is on the Proposal Team? Applies to competition proposal! Make roles/assignments clear Engineering Superintendent Project Manager Estimator Safety Director
Site Visits Mandatory? New Construction vs. Renovation What are you looking for? What do you say in your proposal?
Bid Wrap-up Decisions Low-bid “or equal” equipment quote “Street price” discount –What is the “real” price –Relationships Low-bid sub didn’t provide scope letter Bid impact vs. QTO effort
Mark-up Approaches Handouts Option 1 – 15% OH and 5% Profit Option 2 – Risk Loaded Option 3 – PM Coverage
Conclusion QTO – accurate and thorough Impact/challenges/opportunities of non- QTO efforts Questions? Thank you to Prof. Koch!
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