Have you ever wondered what the full spectrum of process is for cost estimating and bidding a project based on the design-bid-build (DBB) project delivery method? Several people are involved in the process, from the lead estimator to the discipline-specific estimators to those conducting quantity takeoffs, not forgetting the superintendents brought in to brainstorm the construction method and strategy. This team also includes upper management, which helps with the review and sign-offs. The chart below walks you through the process. Let us know if we missed anything.
Cost Estimating and Bidding Process for Design-Bid-Build (DBB) Project Delivery Method
- Obtain Bid Documents
- Review the Plans/Specs and Contract Agreement
- Conduct Job Site Visit
- Attend Pre-Bid Meeting Conducted by Owner
- Decide on Bid/No Bid
- Setup Document Control and Cost Estimating System
- Develop Estimate Schedule and Assign Estimators
- Develop WBS and Breakdown Bid Items and Work Tasks
- Decide on Self-Performed Work and Subcontract Work
- Assign Items of Work to Different Estimators
- Conduct Plan Flip and Specs Review
- Develop the Estimating Checklist
- Review and Participate in Bidders’ Inquiry
- Conduct Quantity Takeoffs
- Compare Quantities
- Request Sub Quotes from Subcontractors
- Request Construction Material/Product Quotes for Specified Construction Materials/Products
- Select Applicable Historical Project Cost Data
- Update the Construction Material/Product Rate List in the Cost Estimating System
- Update the Construction Equipment Rate List in the Cost Estimating System
- Update the Labor Rate List in the Cost Estimating System
- Update the Crew Composition/Assembly in the Cost Estimating System
- Price Work Tasks and Determine Direct Cost
- Evaluate and Assess Project Risks
- Prepare Project Schedule
- Determine Job Site Overhead
- Determine Home Office Overhead (G&A)
- Conduct Bid Review
- Receive and Review Last Minute Sub Quotes
- Adjust Bid to Reflect New Info
- Evaluate and Decide on Bid Strategy – Project Risks and Appropriate % of Profit
- Add and Distribute Jobsite/Home Office Overhead
- Add and Distribute Profit
- Compute Total Bid Price
- Obtain Bid Bond
- Submit Bid
- Attend Bid Opening
- Review Bid Result
- Capture Lessons Learned
- Update Bid Strategy
- Closeout Bid
- Hand Off to Construction Team
