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id, aliases, tags, title
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Construction Estimating |
Construction Estimating
Note
This note is intended for: facts that are about the profession, specifically, as it is currently practiced.
Construction estimating is a subset of cost estimation.
Misconceptions
Standard Practices
In general, many things thought to be standard are quite the opposite.
- Use of square receptacle symbols
Proposals
Proposals are not legally binding, which is a double edged sword for intermediate subcontractors like electrical:
- Proposals to GC's can be withdrawn for any reason
- Proposals from subcontractors can be withdrawn for any reason
This is obviously not popular practice, however it is important to recognize that errors aren't set in stone until a contract is signed.
Destigmatizing proposal retraction is of critical concern for subcontractors. See estimating-culture for more on estimate error strategy#Game Theory.
It's important to recognize that retracting a proposal may upset a few people employed by the GC, but consider how little your own opinion matters to your company's strategic decisions. Much bigger people are involved after the proposal is accepted.
Ethics
Clients engaging in unethical bidding practices can quickly gain a reputation for doing so, leading to reduced bid response that can be impossible to fully recover from.
To ensure a transparent bidding process, one must
- divulge all selection criteria to bidders,
- avoid conflicts of interest,
- maintain confidentiality of bid submissions, and
- provide equal access to bidding information.
Terms
[!info] Bid Shopping the practice of sharing a bidder's quote with other prospective vendors in order to solicit lower bids. The competing quote may be legitimate, fabricated, or a non-serious proposal from a colluding vendor.