Friday, April 24, 2009

Recommended bid procedures Part 2

1.2 Invited or selected bidders-subcontractors and material suppliers

The Issue: Should Subcontractor and Material Supplier bids be received from any Subcontractor and Material Supplier or only from those which the Owner pre-qualifies?

There are two principal schools of thought on this issue. One is that the Prime Bidder should bear the responsibility for the Subcontractors and Material Suppliers it uses. The other is that the Owner has a valid interest in assuring itself as to the capability of its Subcontractors and Material Suppliers. An associated question for Owners in this case is the extent to which pre-qualification is carried. Some Owners choose to pre-qualify only mechanical and electrical Subcontractors; others pre-qualify these and roofing, masonry, and excavation Subcontractors; still others pre-qualify all Subcontractors. Whether and to what extent Subcontractors are pre-qualified is the choice of the individual Owner. Many Prime Bidders would prefer the Owner not pre-qualify Subcontractors and/or Material Suppliers.

Where Subcontractor pre-qualification is used:
1. The names and disciplines of all pre-qualified Subcontractors and Material Suppliers should be published concurrently with those of pre-qualified Prime Bidders.
2. All pre-qualified Subcontractors and Material Suppliers should be able to furnish payment and performance bonds for the project being bid to the Prime Bidders, and to identify the cost for such bonds

Hugolina -