01-30_GENERALS_Fall25_PT - Flipbook - Page 28
ADVOCACY
and/or subcontractors’ collective agreement obligations.
Of course, premiums for performance
bonds, labour and material bid bonds,
project wrap up liability insurance,
builder’s risk insurance, and pollution
insurance must not be ignored. Where
appropriate, have your insurance broker
assess all your insurance and bonding
requirements and related costs before
submitting your bid.
Provisional Items, Cash Allowances,
Additional Items, Extra Work
and Unit Prices
Be wary of these provisions in the tender
documents and, in particular, note their
precise definitions and how each one plays
a specific role in being part of the original
scope of work and bid price - or not. It is
also critical to be aware of the timing when
any such work is subsequently triggered
and becomes part of the contract scope of
work, how any such costs are calculated,
and how they become part of the total
contract price.
Bid Qualifications
Bid qualifications will typically lead to bid
disqualification by the owner, depending on the nature and scope of each item
being the subject of the bid qualification.
Be mindful of the consequences of any bid
qualification and understand the risks of
doing so. If you intend on qualifying your
bid, you may wish to consider taking a
pass and not expending the time, energy,
and resources to prepare a bid that will
likely be rejected.
The Intangibles
Successful projects rely on more than
good estimating, detailed paperwork,
timely performance and quality workmanship. Knowing who the project
players are and their reputation in the
industry - how fairly, reasonably, and
honestly they conduct their business, how
they communicate, and how effectively
they resolve disputes in a timely manner may make all the difference in performing
and completing a successful and profitable project.
As stated by Frank Perricone, President
of Percon Construction Inc., and a past
Chair of the Ontario General Contractors
Association:
“People think the construction industry is all about bricks and mortar. I’m here
to tell you that it’s not. It’s all about relationships and communications, and if you
have that, you can get anything built.”
In a highly competitive bid
environment, low price matters - but
bidding is not just about price; it’s about
risk assessment, and the human factor.
Looking Ahead: Stage 2: Part 3 Contract A
and Contract B Untangled
Every bid is the first step toward a binding
Contract A.
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