Constructability Review [ Pre-construction bids review]
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Based on studies conducted worldwide, dozens of articles which can be found in the internet and based on my professional career as a civil engineer and a project manager, I can determine with no hesitation that poor bid documents, is the major reason, for most of the construction projects failures worldwide.
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The bids documents significantly influences on two major topics, of any construction project: Time and Budget and indirectly affects the quality of work, in the project.
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In this article, we will explain, what is included in the bid documents, how this bid documents can significantly affect the three main measurements of any construction project Time, Budget and Quality.
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And in the end how can we solve this problem in the service that we established which called Pre-Construction bid review.
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- What is the definition of the service called Pre-Construction Bid Review?
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Pre-Construction Bid Review by engineers it means, the ability to audit any construction project in the bid stage, in order to improve them dramatically by finding contradiction between documents, uncompleted drawings, unprofessional contract, budget which doesn’t reflect the reality of the project, all these issues and others which usually caused later to budget overrun, time delays etc.
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This service can be applied for various project`s methods including al the process of “Design Build” projects in which it is important to follow the various stages of the bid process, including examination of the initial bid material followed by examination of the various contractors' proposals and a comparison between them, both technically and financially.
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- What is included in the bid documents?
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The bid documents consist of the following documents:
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The drawings- usually the architectural drawings the structural drawings, electrical , plumbing, HVAC[Heating, ventilation, and air conditioning] and when we are dealing with infrastructure project we have also site plans and landscape , these are the basic drawings we have many other professions and it change from projects to project.
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The scope of work- document which should describe the work as much as possible, general provisions, the site, relationship between the different roles, liability, permits from the authority, what included in the project price and what is not and many other provisions.
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Specifications –describe the essence of the materials and how the work should be done in details in the various construction professions
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The contract- the contract between the client and the contractor is very important, as well to describe the assignments and obligations of the contractor, and should be clear and precise.
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Bill of quantities or unit prices-there are some countries or places, which use a complete documents with all the amounts of materials and prices which determine together the project cost. In other places like in NYS, they have only few units prices in the scope of work which can be used if more jobs has to be done, then they have new prices ready for use in advance.
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- What are poor bid documents?
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In NYC, there is a very bad method for construction, called Fast Track which invented to Save time seemingly for the project, but it is doing the contrary. In this method, the construction manager is issuing incomplete drawings for the site [they have percentage of the reediness of the drawings, 60% 70% etc.] this is an example for poor bid documents.
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The project`s drawings have to be totally complete in the stage of the bid, In each of the various professions and not only this, they have to be coordinated one to each other. That means the HVAC contractor can`t hang a big unit in the ceiling, if there is not enough space and place above the architect drooping ceilings, if this issue will not be completely coordinate before the start of the project, it can be a disaster for the project.
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This is because, it can be cause to a total reduction of the lowered ceiling, on the entire floor, or manufacturing of a new HVAC unit, or any other Improper improvisation, which will impair project quality.
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Incomplete drawings means incomplete information, about the building, that means missing items, items which theirs quality don’t clear and don’t defined enough. Such as drywall which appear in the drawings but doesn’t defined what kind of drywall the architect wants. Later the architect would finishes to develop his drawings and can determine that the wall will be in a high quality, with double partitions on each side with plywood and insulation, much more expensive than a regular drywall, that the contractor priced in his proposal.
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This situation leads to many consequences: first, loss due to higher prices because the contractor is giving a new price after the contract signed, second this is an increase in the budget.
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Moreover, any changes in the architectural drawings during the project, needs updates and changes in the other engineering drawings, which means more changes in the other systems and more change orders and more budget. For different type of partitions usually needed new type of electrical outlet etc. and more money for the consultants whom also invest extra time.
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These changes during the project, always caused a lot of delays, by waiting for a new plans from the engineers. New materials, which sometimes have longer leading time and sometimes when the whole process didn’t coordinate enough, all the project is waiting for the new drawings which cause for a crucial time lose, this is also cost money.
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In the system that we found here in NYC, most of the CM getting money for the hours their team invest in the project as long as the project continue, therefore there is a direct link between any delays in the projects, to financial losses for the client.
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The project`s scope of work
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When issuing a bid with incomplete drawings, it means you have also incomplete scope of work, because “the work” described, first of all in the drawings and If the plans are of a low level, the scope of work, can`t be complete as well. For example, if there is no decision yet, what kind of marble, will be performed in the new fancy bath, the architect will not issue a plan for it and this will not appear fully, in the scope of work. However, after the architect will issue the new plan with the special marble, which can be found only in Italy, in a specific mountain, it is a very big problem, because this mission demand a trip to Italy, for few professionals with a big cost and time consuming.
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It can be a situation that the drawings are excellent, but still the scope of work can be written negligently. These findings are our day to day work, when we checks projects and we are doing generally, a construction internal audit and specifically, when we do the service, pre-construction bid review.
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Specifications
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The specification can not be completed, if the drawings are incomplete. it is not unusual, that the specification are in contrary, or not similar to the drawings. This usually happen because the consultants unfortunately doing “copy” “past” from other projects, and forget that they changed the materials and other differences and changes they have.
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It becomes a mess when there are differences in the same provisions and instructions about the same topics, between the drawings, scope of work, specifications and the contract.
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This mess, is solved by our bid review, which we do by our professional engineers, with years of experience.
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In our time, especially in NYC construction industry, we notice that there is a lack of real professionals, mostly in the big Construction Management companies.
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Traditionally this was and should be their job, to check the bids to find these contradictions and to improve the quality of the drawings and the other documents.
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However, the fact is that usually they don’t have civil engineers in their team, which involved full time in the projects even if they receive millions of dollars for every project.
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Instead of engineers, they are hiring people, with a low construction education, like financial, marketing, or people with education of two years, in construction management study.
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This type of education is not sufficient for being in charge on big construction project.
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This is not enough even for 3 million dollar project, however we can’t tell why but this industry accept this abnormal situation.
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Something that sound very clear and simple, for any ordinary person outside the industry, that engineers have to manage construction projects, doesn’t implemented in theory, in the prestigious construction market, in New York.
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This is a fact, as evidence, we can see the amount of projects, with budget deviations and gaps in the schedules.
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For that reason, our construction internal audit, more important, to solve a crucial issues which don’t be treated, by a team that don’t have real qualification.
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.Contract review
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The contract doesn’t depend on how complete is the drawings and usually doesn’t depend on the rest of the documents, however, it is very important to check, that the other documents in the project, such as the scope of work, do not contradict the contract. Contradiction between the contract and other documents, usually used by the contractors, to get more money, sometimes they have justifications for an extra payments and sometimes they don’t.
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In both cases, it doesn’t matter, if claims arising out from those contradictions, justified or not, the budget increase, as a result of those mistakes.
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Contradiction between the documents
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Poor bid documents are not only incomplete documents; they are also contradiction and discrepancy between them.
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Contradictions and discrepancy means, for example, that the air condition ducts, can not pass above the drop ceilings, ignoring the fact, that in their track, they are facing a big beam which blocks their passage.
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These kinds of issues also cause delays, design changes, budget overruns and damage to project quality, since sometimes, the contractor has to dismantle, or even break structures in the projects, what is cause to decrease in the product quality.
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- The project quality
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Poor bid documents effect also indirectly or even directly, on the project quality.
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How can poor bid documents can cause damage, to the project quality?
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Changing in the drawings during the project, can cause not once to disentail of walls and systems, or even breaking elements, when breaking and disentail occurred, it is not unusual that it can make a long term damage for the structure.
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- Summarize
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The result of poor bid documents makes damage to the project components: budget time and quality.
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As already explained, incomplete drawings and documents leads to crucial budget overrun, delays in the schedule and huge losses to the owner of the project, who can be a private owner or developer, or governmental and any other authority.
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A specific very professional pre construction bids review, can fix so many problems that it is hard to explain why it is still taking so long to establish this service in all the projects.
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The money and time that this service is saving to most of the projects usually estimated between 10%-20% from the project value and this is not a sales trick.
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Therefore a fee between 0.3%-0.6% of the project value for this service, Is a "cancel out" fee for the client.
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- The cake phrase
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To each of the readers who isn’t a construction professional, we can compare bid documrnts to a preparation of a cake.
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Incomplete drawings – means we forgot to put inside two eggs
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Incomplete specifications- means that maybe one items which the cream consist of it, is not in the right amount or by wrong from different material.
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Incomplete scope of work- means that we didn’t describe in what baking dish to bake the cake and how many degrees the oven should be heated.
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Bad contract means- that the owner of the bakery, agreed that his cook would take a week off every month, which means the business is not selling cakes in this week or selling not fresh cakes.
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Contradictions between documents - means that in the drawings we can see all the cake layers and we can notice that there is a layer of cream made from strawberries, however the specifications describes a chocolate cream.
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