In Holloway Consulting’s experience as a leading Construction Claims Consultant, both AGC and ABC general and specialty contractors on a wide variety of projects are needlessly assuming increasing risks in their contracts. This series of posts are designed to provide subcontractors with a better understanding of hidden job risks, along with examples of how Holloway Consulting has helped clients avoid and manage such risks.
Construction Claims Consulting
BID PHASE RISKS
Many contracts contain some type of express or implied requirement that prospective bidders are to visit the site. The subcontractor will generally be responsible for the knowledge he would have gained had he made a site visit. If there is any possibility that information having a bearing on the price of the work may be discovered, a site visit is recommended.
One of the most beneficial types of site visit is one made in the company of other members of the project team because the subcontractor can benefit from the others fields of expertise. Even though the successful prime contractor will not have been chosen, the subcontractor should make the effort to coordinate his site visit with that of the expected prime contractors.
Site Investigation Report
A site investigation report should be written to include the investigator’s general impressions regarding accessibility, local weather conditions, availability of utilities and any recognized problems. Opinions and suggestions offered by owner representatives should be covered. Comments concerning labor union manpower levels, anticipated cooperativeness and expected pay scales should be recorded. If photographs are taken, they should also be included. When complete, the report should be made available to all members of the estimating team.
If the owner or general learns that something was discovered during the site visit that will or may increase the price for the subcontract work, it is important that other bidders are made aware of it so as to maintain a competitive situation. It is ill advised to allow a bidder to obtain a contract if he has been denied all of the pertinent available information. One way to ensure that this type of information is promulgated is to bring it up at the pre-bid conference.
Other Posts on Contractor Risk Avoidance
More to come . . . .
Contact Steve Holloway – Toll Free – at 888-545-0666 about your requirements
Construction Claims Consultants
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
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