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Cost Estimating and Bidding Process for Design-Bid-Build (DBB) Project Delivery Method

blog-image

From cost estimating to project scheduling, and other project control discussions.

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

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

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