Taking a Calculated Risk with BIM in a Hard Bid

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Last week's AGC SmartBrief contained an article revealing the very stark reality of hard bids in the Las Vegas construction market.  Las Vegas isn't the only market hit hard by the economic downturn, but it exemplifies the boom and bust of commercial construction.

Here are the statistics revealed in the article:

• Bid value is down 40%

• 15-20 bidders per project

• Gap between high and low bids is 40%

• Bidders are coming in from out-of-state

In a hard bid scenario it's the lowest bid that wins. The Owner surely is getting a great price from the bidders: a price that can be as much as 30% below projected cost, or as this article about the Las Vegas market indicates, 40%. But experienced Owners know that these hard bids come with hidden costs including change orders, delays, and claims that end up costing them additional money. But even if those extra charges were to add 20% to the cost of the winning hard bid the owner has still realized a 10% saving over the original projected cost.

Vico Services, with over 350 successful 5D BIM projects around the world, has developed specific strategies for winning business in a hard bid. The four-part webinar series examines scheduling, estimating, and coordination strategies that can effectively set your company apart from the other bidders.

This archived webinar series is for you and your firm if:

>>  Hard bids have become the de facto bidding process in your market;

>>  You want to develop hard bid strategies quickly, but might not have time to develop a BIM;

>>  You know you'll discover change orders during the project, but you want to find them sooner (and cost them competitively);

>>  You understand that construction-caliber quantities drive a more precise schedule and estimate - you just haven't seen it in action;

>>  You want to protect your fee and believe that 4D and 5D BIM done right will mitigate project risk.

Mastering the Schedule to Mitigate Risk and Keep Your Profit

In an environment where there are smaller projects with plenty of bidders , it's imperative that you remain competitive on your fees and general conditions. How so? At-risk General Conditions are typically 7-11% and getting skinnier in this economy. In a hard bid, if your schedule extends even just one month, you're bound to pay the whole expense. And that expense knocks up against the 7-11%.

It's counter-intuitive to think that a tighter schedule mitigates risk. But a quantities-driven, location-based, and resource-balanced scheduling solution can give you the competitive advantage.

Mastering 5D Cost Planning for a Hard Bid Project

In this webinar, we examine the difference that construction-caliber quantities bring to the cost plan and schedule. Cost planning allows you to build multiple iterations of the estimate linked to the model progression specification so that every change can be costed, not only in terms of dollar value but also schedule flux.

We demonstrate how you can calculate the cost of the project at a very high level of detail for the parts that are high risk, and leave it at a lower level of detail for those parts that you are subbing out.  We'll also show how to use the model's visual feedback to determine whether you included everything in your cost plan.  If an area or element is not highlighted, it's not in the cost plan!

Finally, you can communicate the calculated price to management, showing how the bid was developed from the baseline cost plan.  This tactic is also useful if the owner allows an open book proposal.

Mastering 3D and 4D Constructability for a Hard Bid Project

It's easy to think that you're done with BIM after you've run a clash detection. But in actuality, the true BIM has just begun. Not only do you need to organize objects in space, but you also have to organize the project timeline. These RFIs turn into Change Orders which greatly impact the duration and cost of your project. We'll illustrate how to best manage the coordination process to iron out constructability and scheduling issues earlier rather than later.

The BIM Knowledge Base of Cost and Time Elements

There's a growing database of construction elements for BIM models, but did you know that best practices illustrate that you should also have a BIM database of cost and time elements? This knowledge base permits you to build resource-loaded schedules and cost-loaded estimates. But the question remains: Do you build it or buy it?

In the end, it's all about building trust with the Owner by working in concert, adding value every step of the way. Doing it right the first time yields untold value. Using BIM even in hard-bid situations permits and even encourages this collaborative approach. Let's work with the hand we've been dealt and make it win. 

What is the situation like in your geography?  Has the Owner reverted back to hard bids?  Would you ever consider trying BIM on a hard bid?  Why or why not?