January 16 2014 0Comment

Bundled Bids – What are they and what are the benefits – part 1 of 4

When subcontractors receive an invitation to bid on the construction or rehabilitation of a non-residential property, there are often several trades involved to provide the owner, GC or public entity with a price to perform the specified requirements.

With the benefits to the GC or building owner listed below, it makes sense to get as many trades covered by one subcontractor as possible. This, of course, will depend on that subcontractor’s qualifications to bid on these various elements, their insurance, bonding and overall financial stability to self perform several trades on a single project, sometimes simultaneously. Priced proposals from one subcontractor meeting all these qualifications and encompassing multiple trades are called bundled bids.

Scheduling Efficiencies

As noted, there are several important benefits to the building owner or GC to this “Bundled Bid” / “Multi-Trade” approach. One of these concerns the efficiencies realized in the scheduling process.

Scheduling is made easier when one subcontractor is controlling several aspects of the installation. If done correctly, there will be no delays in sequencing; schedules can be predetermined to assign crews to perform every task in a continuous time line.

For example, if the project calls for: 1) the installation of a substrate, 2) waterproofing that substrate and 3) installing metal wall panels over the waterproofing, this external wall installation can be scheduled to be performed seamlessly with no delays even though it has to be done by several trades.

This seamless installation is possible when a single subcontractor is performing all of the work.

Delivery and staging of materials at the job site for various aspects of the installation can also be better managed when one subcontractor has control over those schedules.

Also consider simple items, for example, sharing rental equipment between the various trades such as cranes or reach forklifts. This will not only produce some cost savings but will reduce the amount of equipment and congestion on site. For new construction projects, the trades covered by a multi-trade contract can be managed from one on-site trailer – again reducing congestion. bundlebids1

This is an example of a project (Newport Beach Learning Center) that we did the roofing, waterproofing, sheet metal, glass and glazing. Click HERE to see more about the project.