January 17 2014 0Comment

Bundled Bids – What are they and what are the benefits – part 2 of 4

Bundled Bids
This is Part 2 of our discussion about awarding one subcontractor with multi-trade contracts for new or major building construction projects. In Part 1, we presented a case for the benefits that accrue to the General Contractor or building owner for such contracts as it applied to project scheduling. This presentation, Part 2, discusses a further benefit from this type of contract.

Accountability
A prime benefit of a multi-trade contract with one subcontractor is that, regardless of the outcome, there is only one company ultimately responsible for the quality of the ongoing relationship with the GC and the work performed under that contract.

The best way to manage this accountability is for the subcontractor to assign one person to be responsible for providing answers to all issues that arise. These issues can range across the board from a labor issue to paperwork delinquency. It is understood that the “go to person” cannot be expert in all matters, but they are empowered by the subcontractor to cut across corporate, divisional, and departmental lines to get the answers needed in any situation and provide those answers rapidly. Preferably this “go to person” sits at the job site in a trailer and is accessible to the general contractor’s personnel at all times. Even if that is not possible, for example, prior to contract start up, that one person should always be reachable by phone or by email to provide rapid responses to any issue.

The general contractor benefits greatly from single source accountability. The single, “go to person” provided by the subcontractor eliminates several points of contact that the general contractor would otherwise have to deal with. The single contact quickly answers all of the GC’s questions on a wide range of topics covering multiple trades and scopes allowing the GC’s personnel to do their jobs better and faster resulting in a smoother project.

Reducing the number of contacts greatly reduces the frequency and severity of the general contractor’s headaches:

  • Eliminate juggling multiple contacts
  • Eliminate finger pointing between trades
  • Eliminate scheduling hassles between trades
  • Eliminate jumping through hoops to get answers

From contract award to contract close out: one company, multiple trades, one accountability!

How does BEST Contracting manage multiple trades in a bundled bid project? Click here to view the Bell Education & Career Center interactive project profile for an overview of the process.