Archive for the ‘Evaluation of Proposals’ Category
April 24th, 2011 | 
Author: Contracts and Purchase Agreements
When a developer or owner advertises a project for the solicitation of bids, it is an invitation hence the cover document is captioned: ‘Invitation to Bid’.
A contractor’s or supplier’s response to the invitation is referred to as a ‘Bid’ and constitutes a ‘Proposal’ to perform work or supply items described therein for the related sum.
There is no contract until the developer or owner formally enters into a written agreement in the form of a Contract or Purchase Agreement with the proposer. This formal document is prepared by or on behalf of the developer or owner and sent to the party whose proposal is to be accepted; their representative duly signs in the presence of required witness as an authorized officer of the company and returns the required number of copies to the developer or owner. Having been satisfied that the returned document was properly executed by the contractor or supplier, the developer or owner then endorses their sections and returns copies to the contractor or supplier, as well as their respective insurance and bonding companies.
During the performance of the work, it is critical that neither the contractor nor the supplier be allowed to deviate from the requirements of their contractual agreement without a formal Change Authorization. If the developer or owner is privy to sundry informal changes to the work, then they become party to ‘rewriting’ their contractual agreement, resulting in the original document probably becoming unenforceable.
Where a general contractor replaces a developer or owner as the party receiving and accepting proposals the agreement may become a subcontract in lieu of a contract.
If you would like us to help Evaluating Construction Contracts and Purchasing Agreements or need Florida Construction Management Services, please complete the form below and a professional will contact you to discuss your specific needs:
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We provide Construction Contracts and Purchasing Agreement Evaluation Services and Florida Construction Management Services in the entire state of Florida including the following large Florida counties: Miami-Dade County, Marion County, Pasco County,Polk County, Brevard County, Leon County, Duval County, Sarasota County, Escambia County, Manatee County, Orange County, Hillsborough County, Alachua County, Collier County, Broward County, Seminole County, Palm Beach County, Lee County, Pinellas County, Volusia County and others.
We offer Florida Construction Management Services and Construction Contracts and Purchase Agreement Evaluation Services services all over Florida including the following metro areas: Gainesville, Fort Pierce/Port St. Lucie, Sarasota / Bradenton, Fort Myers, Jacksonville, Titusville, Ft. Walton Beach, Winter Haven, Naples, Palm Bay, Daytona Beach, Fort Lauderdale, Cape Coral, Punta Gorda, Pensacola, Ocala, Melbourne, Orlando, Lakeland, Tallahassee, Clearwater, Panama City, West Palm Beach/Boca Raton, Tampa, Miami, St. Petersburg and surrounding areas.
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Florida Construction Proposal Evaluation Services
The developer or owner is the party at greatest risk hence should be the major beneficiary of the bidding process. There are several underling strategies at play in the bidding process. Overall at completion, the developer or owner needs to have value for his or her money whereas the contractor would like to make a profit for effort and time.
The bid package comprises the construction documents that are the basis of the contractor’s proposal. The bid amount should represent the contractor’s desired compensation, inclusive of profit, for completing all the work described and indicated in the construction documents without qualifications and exclusions.
Acceptance of the proposal and the subsequent contract for construction should be based on a careful examination by the developer or owner’s construction cost consultant. This is where the consultant’s pre-bid pricing and documentation of scopes becomes the basis of evaluating all proposals. If a proposal seems too good to be true, it most likely should be questioned. Because the bid amount is reasonably acceptable, the need for ‘balanced’ pricing throughout should not be overlooked; one of the least desirable practices in construction is ‘using Peter to pay Paul’. The inability of the contractor to meet any respective obligation is one the most common reasons for the aggrieved party ‘walking off’ the job.
The existence of a binding legal document does not guarantee that execution of the work may not be supplanted by time spent in legal anglings or even in the courts. ‘Time is money’ is never more true than when one discovers that nothing in the construction contract will guarantee compensation for every dollar lost by unplanned delays or interruptions.
It is incumbent on the developer or owner to maintain control of all aspects of the project from concept to completion, which may best be achieved by employing a knowledgeable, independent construction management consultant.
If you would like us to help Evaluating Construction Proposals or need Florida Construction Management Services, please complete the form below and a professional will contact you to discuss your specific needs:
———————————————————————————————————
We provide Construction Proposal Evaluation Services and Florida Construction Management Services in the entire state of Florida including the following large Florida counties: Miami-Dade County, Pasco County, Marion County, Polk County, Leon County, Brevard County, Duval County, Escambia County, Sarasota County, Manatee County, Alachua County, Orange County, Hillsborough County, Collier County, Seminole County, Broward County, Palm Beach County, Pinellas County, Lee County, Volusia County and others.
We offer Florida Construction Management Services and Construction Proposal Evaluation Services services all over Florida including the following metro areas: Gainesville, Sarasota / Bradenton, Fort Pierce/Port St. Lucie, Fort Myers, Titusville, Jacksonville, Ft. Walton Beach, Naples, Winter Haven, Palm Bay, Fort Lauderdale, Daytona Beach, Cape Coral, Pensacola, Punta Gorda, Ocala, Orlando, Melbourne, Lakeland, Clearwater, Tallahassee, Panama City, Tampa, West Palm Beach/Boca Raton, Miami, St. Petersburg and surrounding areas.