The Bid And Award Phase

The Bid and Award phase

The phase is usually kicked off with a pre-qualification phase where suppliers and contractors (hereafter refered to as ‘vendors’) are identified and shortlisted. This activity can compelte prior to the end of the design phase, so that vendors are prepared for activity immediately on completion of design. It will likely involve market research and taking recommendations from others.

Following this, the exact order of activities will depend on the procurement method chosen, but fundamentally, there will be a need to:

Methods of Procurement:

Traditional Procurement - this method involves the client hiring a designer/architect separately from the contractor. The contractor is selected through a competitive bidding process. Supply items can be purchased by the main contractor, or supply items can be purchased separately and passed to the contractor for installation.
Design and Build – in this approach, the contractor is responsible for both design and construction phases. A concept design is usually passed to the contractor, from which they develop and detailed, technical design. Design and Build contracts can streamline the process and lead to programme savings. There are also many benefits to early contractor engagement and ‘buildability’ assessment. However, control is passed to the contractor very early in the project, which can impact cost, quality, and adaptability.
Construction Management – In this approach, a construction manager is appointed, who coordinates various subcontractors and suppliers. The method is beneficial for complex projects with multiple stakeholders. A construction manager can be appointed early in the design phase, or at completion of design (like Traditional Procurement).

Ahead of the design phase it’s also likely that you will procure a designer or design team. The method for this follows the same process as the traditional method above. Where architectural design is involved, it’s important that the architect fully understands the brief and is broadly aligned with you on the direction, quality, aesthetic objectives, and priorities of the project.

Pull together a pack of information (e.g. drawings, specifications, scope documents, survey informaiton, pricing schedules, risk register) to issue to potnetial vendors.
Allow time for pricing. This will likely include clarification quesitons and site visits
Analyse, review and negotiate, to ensure the right thing is bought for the right price and you maximise the chance that the project is completed on time, within budget, and to the required quality and safety standards
Formalise recommendations, decisions and approvals prior to committing to vendors
On approval and agreement to proceed, formalise contracts and instructions with vendors and agree key dates for works or deliveries.

Best Practice Guidance:

Develop a clear procurement strategy that’s aligned with the project objectives.
Conduct thorough market research to identify potential suppliers and understand market conditions.
Clearly define project requirements and specifications to minimize ambiguity during the bidding process.
Maintain open communication channels with suppliers and subcontractors throughout the procurement process.
Take time to ensure you are happy with selected vendors.
Select the best vendors for the project (not necessarily the cheapest).

Procurement plays a vital role in the success of construction projects, impacting cost, schedule, safety, and quality outcomes. By understanding the procurement process and adopting best practices, you can effectively manage the acquisition of resources and maximize project success.

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The Bid and Award phase (often referred to as the Procurement phase), is where key components of the project are bought. This includes consultants, suppliers, installers, and contractors. The phase ensures that the necessary materials, services, and resources are acquired efficiently and effectively.

By this stage of the project, you should have a fixed idea of what the project looks like, how much you intend to spend and the anticipated duration of the project. During the phase, tendering is completed, contractors are selected, suppliers are engaged and preparatory activities (such as permits and approvals) are completed. By the end of the phase, construction budget and timescales are finalised, manufacture of long lead items will commence.

There are several different methods for buying goods and services on a project, we’ll cover the key methods here. For larger or more complex projects, the bid and award phase can be contracted out and completed by a project manager or procurement specialist.