Monday, July 30, 2018

Bidding Successfully On Public Works Projects Requires Knowledge Of The Rules

By Ann Burns


If you want to succeed in the construction, electrical, plumbing, or road repair business, finding reliable repeat customers, with substantial orders, is the best way to do it. You might become a preferred contractor for architects and developers. You may have considered bidding on public works projects, but do not know how to go about it. Municipalities can be great sources of business, but you have to know what agencies are looking for and how the decision makers think.

Municipalities are looking for responsive bids. Your bid won't be considered responsive unless it is submitted within the allotted time and includes all the information asked for. This is mostly a matter of taking your time and following directions to the tee. Your deadline is determined by the bidding clocks that hang on the walls of agency offices. No other clocks matter. If you don't get your bid in on time or leave it at the wrong office, you're non-responsive.

All the additional documentation the municipality requests has to be included along with your sealed bid. This usually includes a bid guarantee. Acknowledgement of your attendance at all mandatory pre-bid meetings might be part of the package. A complete bid responsibility questionnaire may also have to be included.

You must show that you are a responsible bidder. Proving this can include a number of things. You must be a registered contractor with a tax number. You have to have current workers comp and industrial insurance. You can't be disqualified under any of the rules and regulations of the particular municipality where you are bidding. In many states you have to swear you haven't violated any labor laws.

Cities use several sources to confirm information. Many states have websites that include public information about contractors for example. Municipalities can get access to contractors' tax numbers, and check to see if they have active insurance policies. A list of disbarred contractors is available as well. Municipalities can find out if the Department of Revenue has you registered.

Agencies can add supplemental criteria to the award process. They have the authority to eliminate contractors who haven't paid their state taxes or have wage violations. Federal debarment can be a factor in elimination. Many cities will throw out bids from contractors who have violated bidding rules in the past or have been terminated for cause. Depending on the project, the municipality may make past experience a requirement.

Once the bids are open, the staff goes through them and selects the lowest responsive bid. As the contractor you will be notified of your selection usually within thirty to forty-five days after bid closing. Once you have been notified you will have ten to twenty business days to submit your signed contract along with your performance and payment bonds, and certificate of insurance.

Government contracts can be very profitable sources of business. To get the contracts, you have to know what you're doing. Mistakes nearly always end up in the non-responsive category. Experienced contractors who follow directions to the letter are the ones who get the jobs.




About the Author:



No comments:

Post a Comment