Preparing the Bid Package (A Developers Perspective)

► HOW DO THINGS GET BUILT??????

Project Concept and Need: Initiation of the Project ► Most construction projects are economically driven: ► Regions of healthy industry & manufacturing tend to foster further construction:  Homes  Grocery Stores  Department Stores  Shopping Malls  Public Utilities  Transportation Systems

Establishing Need: Market Analysis ► Opportunities are identified and evaluated through feasibility studies. ► Demographic & market analyses are used that forecast future growth ► Projects are then financed by investors who then: ► INITIATE PROJECTS

The Feasibility Study ► Prelim study includes the projected preliminary estimate of the overall costs for the project. ► The study includes an investigation of the project’s return on investment (ROI) ► The factors are investigated such as: ► Cost of job (budget) ► Timeline required for completion ► Market demand ► Economic life of project ► Projected income ► Decision to proceed by developer will be based on these factors. ► ARCHITECT/ENGINEERING FIRMS OFTEN OFFER FEASIBILITY STUDY SERVICES. ► LET’S LOOK AT ONE! LET’S LOOK AT ONE! LET’S LOOK AT ONE!

Next Step: Financing ► If decision is to proceed: Financing must be secured ► Developers Options:  Private investors  Borrow **Either case, there must be evidence of anticipated ROI (Feasibility Study)

Design Phase 1: Conceptual Drawings & Estimates ► Now it is time to determine basis of design:  engineer/architect involvement ► Renderings & sketches assist potential investors in understanding the project ► Determine early cost estimates & schedules  Often on a square foot basis (see handout)  Selection of site often occurs at this time Renderings: Show function & general layout of the building/project

Design Phase 2: Develop Schematic (Preliminary Drawings) ► Engineer/Architect necessary ► Specific building features are defined  Dimensions  Floor plan ► Specifications are outlined

Design Phase 3: Design Development ► Actual design work is performed here:  Building features, components & cladding (architect)  Site development, structural system & details (structural & civil engineer)  Plumbing, electrical & HVAC (mechanical/electrical engineer) (mechanical/electrical engineer) ► Final Plans & Specifications are developed ► These constitute legal documents— and job can go out to bid at this point

Notice To Bidders Is Issued ► Announcement that design documents are available to bidders for consideration ► Notice contains:  General type of project information  Size of project  Availability of plans & specifications  Time, place and opening of bids