Contractor Selection Methods

Part 3 of the "Building a Strong Foundation" Series

In the third part of this series, we dive into contractor selection methods, offering guidance on how owners can evaluate and choose the right contractor for their projects. From informal recommendations to formal competitive bids, we explore strategies that ensure a fair and informed decision-making process.

Austin Degenhart

President, D. Hart Consulting

October 10, 2024

Choosing the Right Partner for Your Project

At D. Hart Consulting, we understand that selecting the right contractor is a critical step in the success of any construction project. Once the project delivery system is determined, the next crucial decision is how to choose the appropriate contractor. Owners of private works projects have a range of selection methods at their disposal, from informal recommendations to formal, competitive sealed bids or proposals.

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Exploring Selection Methods

Unless an owner has an established relationship with a contractor, it is generally beneficial to use a selection method that allows for comparison among several qualified contractors, leveraging market forces in the negotiation process. Even if the owner opts out of the formal competitive sealed bid method, it is advisable to conduct interviews with multiple contractors and request written proposals from each.

When competitive bidding is involved, the owner provides a bidding package to the contractors being solicited. Even with less formal methods, a project information package should be given to each contractor from whom a proposal is requested. Ensuring that all contractors receive the same information is crucial for making fair comparisons.

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Contents of Bid or Proposal Packages

The information included in bid or proposal packages varies based on the project delivery system and pricing structure chosen by the owner. In a Design-Select-Build arrangement, the architect typically prepares the bid or proposal package. In a Design/Build arrangement, this task often falls to a project or construction manager.

While these packages usually contain technical details prepared by design professionals, it is essential for owners and their legal counsel to review them to ensure they accurately describe the terms and conditions of the proposed contractual agreement. Ideally, the package should include the actual construction contract forms that the owner expects the contractor to sign, simplifying post-selection negotiations.

Stay tuned for more insights and guidance on optimizing your construction projects