< View more posts

Savings After Bid Day

Dennis Wilkins

Dennis Wilkins , AIA, LEED AP

Integrated Project Delivery (IPD) Provides an Opportunity to Reap Project Savings AFTER Bid Day

A typical construction project may span three to five years and occasionally more. Often Owners consider the design process and construction activity as two separate events. This perspective impedes the ability to look for cost savings throughout the project, which translates into missed opportunities.

Integrating design and construction professionals that communicate frequently and respect each others craft is a powerful tool that can find and implement cost savings after bid day.

This is one of the benefits to an Integrated Project Delivery approach, by continuing to refine the product (your project) during construction. After bid day it is prudent to engage each of the trade contractors in a target cost management discussion to identify any opportunities to reduce project costs. Asking each of the contractor’s for their opinion often leads to ways to reduce
cost without reducing quality. But, even after these target cost management meetings it is imperative that the team (both design and construction professionals) continually look for ways to reduce cost or improve the product. This effort should continue through project close-out.

If your team is committed to the three C’s; communication, collaboration, and cooperation, it should always be looking for improvements to the project. The table illustrates a real world example of how IPD and communication throughout the project can save your client’s money.

100% of savings is returned to the owner

Specification Description Contract Amount After Bid Day Savings % Saved
Masonry Restoration $96,726 $1,974 2.0%
Structural Steel $1,157,830 $22,485 1.9%
General Trades $7,690,600 $349,946 4.6%
Millwork $197,107 0.0%
Roofing $2,858,037 0.0%
Doors and Frames $717,489 $1,598 0.2%
Entrances and Storefronts $358,579 $351 0.1%
Flooring (Tile) $881,059 0.0%
Painting $717,900 $4,562 0.6%
Information Specialties $192,563 0.0%
Signage $79.727 $318 0.4%
Foodservice Equipment $350,000 0.0%
Elevator $52,000 0.0%
Fire Suppression $414,680 $5,493 1.3%
Plumbing and HVAC $8,172,283 $291,875 3.6%
Building Controls $2,223,738 $132,382 6.0%
Electrical Systems $11,270,251 $604,175 5.4%
Security Systems $31,066 $11,193 1.5%
TOTAL $38,958,034 $1,756,580 4.5%

After bid day cost savings example. This example is from a recently completed corporate research and manufacturing center for a large multinational company.

For more information please see “The Guild Master” white paper.