Collecting Bids from Contractors

1.  The first thing you must do is compile a Scope of Work. 

Scope of Work

What is it?

• A written statement of the work to be performed by a contractor.   It includes a list of general conditions, temporary facilities if needed, clean up, site work, time frames and detailed list of work needing to be accomplished 

Why do we need it?

• To assure that all contractors are bidding on the same thing. 
• So the contractor knows what you want done
• To make sure nothing is left out.

Building Department

Permits – Why are they necessary?

• The ICC can by itself pull permits at the City Building Department, if we want.  But the cost to us is much more than the % of costs charged for the project.  If the work performed by a contractor is inferior, or does not pass city building inspection and the ICC has pulled the permit, then we as an organization are responsible, not the contractor doing the work.   Be weary of contractors who refuse to pull permits on their work

Using the Building Department as a resource

• The city building department can be a helpful source of information.

2.  Finding the right contractor

Your scope of work is done.  Now you need to find contractors to bid on your project.  Listed below are several different ways of finding the right contractor.

• Use the contractor database in the Maintenance office to find contractors
• Use other reference material in the Maintenance office ( The Blue Book, Construction Buyers Guide,  Home Builders Association of Washtenaw County ) to locate contractors
• Talk with the Maintenance staff.  The staff has dealt with most of the contractors in our database before and can give some insight to their performance.  
• If you can not find enough contractors for three bids using these resources then let your fingers do the walking.  The phone book is full of contacts.  If you go this route and would like to use that contractor you must ask for and contact their references.

3.  Collecting Bids

Now that you have your scope of work and a list of contractors it is time to start collecting bids.  Things to do and think about when collecting bids.

• Utilize the Scope of work for all interviews.  Listen closely to ideas presented by each contractor, question their ideas, how much more would different options costs.  Request price differential in the bid itself.= Option one, Option two etc.
• If it walks like, talks like, acts like a slime ball, trust your instincts, they probably are slimly.
• Cue in on how closely the contractor is listening to you and how closely they are sticking to the Scope of Work.  Don’t  discourage new and different ideas, but don’t let them go too far off track either
• TAKE NOTES!!!!!!!!!!!!!!!!!

4.  Decide which contractor/bid you would like to go with

You have the bids in hand.  Now you must make a decision on which contractor/bid you would like to go with.  Keep these things in mind when making a decision.

• Ask yourself how you would feel about working closely with the individual and or the representative of the contracting company.
• Staying in the Ann Arbor area for contractors has its advantages when it comes to warranty work.  This should not be the sole determining factor, but sometimes does come into play.
• What kind of warranty do they offer?
• Will this company be in business long enough to honor its warranty?
• Have they done work for the ICC before?  How did the work turn out?
• The lowest bid is not necessarily the best one.
• Why is the lowest bid lower than the others?  Are they bidding the same work?  Compare them to the other bids and make sure that nothing has been left out.

5.  Take it to the Maintenance Committee for approval

Take all your information to the committee.  Be prepared to present your information, explain why you want the work done, why you want the contractor you are suggesting and be ready to answer questions.