Run an Effective Competitive Bid
Being in commercial property management, running competitive bids for repairs or construction is an important but complex activity. Your team has been entrusted by ownership to find the best vendors at the most competitive rates. This seemingly simple process is not so simple, as you probably know. First you need to organize the project and its’s requirements, then invite good contractors to bid, and ultimately, secure the required number of proposals. And lastly, everything must match up in the end. Vendor bids need to accurately reflect your project’s requirements and fall under your target budget. Within each of these functions, a myriad of complications can arise too. Connex Property has been involved in a lot of bidding projects over the last several years, and we’d like to share some thoughts on how to improve your own bid process.
1. Before you start scheduling site visits with vendors to come take a look at your project, make sure you have a well-defined scope of work ready. It doesn’t have to be perfect, however, it should convey the overall aspects of the job and its project requirements. Contractors love it when a project is well organized from the beginning, as it makes their jobs easier from a pricing perspective. If it’s written down, then all the vendors will be bidding off the same instructions, and you’ll achieve apples to apples bidding.
2. Discuss the budget. If you’re uncomfortable with revealing the exact budget, try giving a pricing range. This is incredibly helpful for both you and the bidding contractors and here’s why. First, the contractor will utilize your budget to measure the various products in the market, choosing only those that make the most sense given your pricing range. And from a property manager perspective, there’s nothing more concerning than getting bids that are all over the place in terms of costs. You’ve spent countless hour scheduling site visits, answering vendor questions, and now you must go back and re-analyze each proposal to find out where the price discrepancies are. It’s best to get your whole team, including the bidding contractors, on the same page with your budget.
3. When scheduling site visits, as opposed to meeting only one vendor at a time, try to get all 3 or 4 bidders together on the same day, same time. This is sometimes called a pre-bid meeting. This will obviously save you a ton of time, however, this is also a great way to clear up any confusion around the project, so everyone feels comfortable around the scope of the project
So here are a few ideas to think about on your next bidding program. The most important aspect of any project where you need to get multiple bids, is the set up. You want to ensure all the bidders have what they need so they can put together the most comprehensive and cost-effective proposals for you.