The bidding and contracting process for a construction project involves several critical steps, ensuring a transparent and efficient selection of the right contractor for the job. Here's a breakdown of the key phases:

1.Project Definition and Preparation:

• Develop a clear scope of work: This outlines the project's objectives, deliverables, timeline, and budget.
• Prepare bidding documents: These include bid forms, instructions, specifications, drawings, and any contractual terms.
• Identify potential contractors: Research and pre-qualify contractors based on experience, expertise, and financial health.

2. Bidding Process:

• Issue Invitation to Bid (ITB) or Request for Proposal (RFP): This formally invites contractors to submit bids.
• Pre-bid meeting: Address uncertainties, clarify project details, and answer contractor questions.
• Receive and evaluate bids: Carefully review bids based on cost, experience, qualifications, and proposed methodology.
• Shortlist qualified bidders: Select a few contractors for further evaluation and negotiation.

3.Negotiation and Contract Award:

• Negotiate contract terms: Discuss price, schedule, change orders, risk allocation, and other key terms.
• Conduct reference checks: Verify contractor's performance on past projects.
• Award contract: Select the best bidder and finalize the contract document.

4.Pre-construction Phase:

• Joint meeting: Discuss logistics, safety plans, communication protocols, and schedule coordination.
• Secure permits and approvals: Obtain necessary permits from local authorities.
• Finalize subcontractor agreements: Contract with specialized subcontractors for specific tasks.
• Issue Notice to Proceed (NTP): Authorizes the contractor to officially begin construction.

5.Construction Phase:

• Regular progress meetings: Monitor progress, address issues, and ensure adherence to plans and schedule.
• Change order management: Document and approve agreed-upon changes to the scope or schedule.
• Quality control inspections: Verify compliance with specifications and safety standards.
• Payment processing: Issue payments to the contractor based on completed work and milestones.

6.Post-construction Phase:

• Punch list completion: Address any outstanding minor issues identified before final handover.
• Final inspections and approvals: Obtain final approvals from authorities and owner.
• Project closeout: Final documentation, warranties, and handover of as-built drawings.

7. Contractor Documents

Contractors will be doing independent quality surveys to determine the cost estimate of project or the scope they are bidding on.

Contractors typically spend around 1% of their estimated project cost on bidding.

The winning contractor is usually the one with the lowest responsible bid, including work to be done by the general contractor and selected subcontractors.

The contractors often prepare General Arrangement Drawing to reflect the construction process and phasing of work.

GA drawings serve as their internal guide for planning the construction sequence, equipment placement, and material staging. They also help facilitate communication and coordination among their subcontractors.

Using the drawings: Contractors utilize GA drawings during various stages of construction, including:

• Pre-construction planning: To understand the site layout, material flow, and logistics for equipment and deliveries.
• Construction staging: To define areas for different activities, temporary structures, and storage zones.
• Coordination with subcontractors: To communicate the overall plan and ensure everyone is on the same page.

The subcontractors and fabricators must also produce their own shop drawings to reflect accurate details of certain items, such as

• Structural Steel Fabrications
• MEP Fabrications
• Millwork and Cabinetry Contractors
• Precast concrete units
• Wall details
• Piping runs, and the like.

·       RFI (Request for Information):

• Definition: A formal query made by a contractor or subcontractor to the architect, engineer, or other relevant party seeking clarification or additional information about the design documents, specifications, or site conditions.
• Purpose: To clarify ambiguities, resolve discrepancies, or request missing information before proceeding with construction.

o   Process:

• Submitted in writing, often using a standardized form.
• Clearly defines the issue and requested information.
• Requires a timely response from the responsible party.

o   Importance:

• Prevents costly errors and rework due to misunderstandings.
• Facilitates informed decision-making during construction.
• Creates a documented record of communication and potential changes.

·       Change Order (CO):

• Definition: A formal document that modifies the original contract scope, schedule, or budget to address a design change, unforeseen condition, or other agreed-upon modification.
• Purpose: To officially document and implement changes after an RFI or other agreed-upon need.

o   Process:

• Initiated by the party proposing the change (usually contractor).
• Clearly defines the change, impacts on time, cost, and scope.
• Requires negotiation and approval by all affected parties (owner, architect, etc.).
• Signed by all parties and becomes part of the contract.

o   Importance:

• Provides legal documentation for agreed-upon changes.
• Ensures clear understanding of cost and schedule implications.
• Mitigates disputes by establishing defined responsibilities.

·       The final phase is commissioning the building, which takes place after construction is finished. This involves testing the building systems (heating, cooling, electrical, plumbing, fire sprinklers, and so forth) to make sure they work properly.

·       As-built -Final  drawings are produced to reflect all as-built changes, and these are delivered to the owner along with all manuals and warranties for installed equipment.

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Prepared by : Shiju Sasidharan , Sujisha V & BIMLABS Global Research Institute Team.

References : 

·       BIM Handbook: A Guide to Building Information Modeling for Owners, Designers, Engineers, Contractors, and Facility Managers.

·       Google & Gemini

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