by Ben Di Duca, Di Duca Law, PC
Are you rolling the dice on your business with your Public Works bids? You are if you don’t know what to watch for!
For those who attended our seminar, “Public Works Contracts & Red Flag Provisions”, they discovered that bidding Public Works requires a lot of care and knowledge – before, during and after you bid.
Here are just a few of the helpful tips:
- When specs reference the “Contract Documents”, it includes EVERYTHING in specs, plans, addenda, memoranda and referenced docs. Incorporation By Reference means ANY additional codes, standard specs/plans, city statutes, etc. that are simply “referenced” in the specs become part of the official Contract Documents for that project.
- Subs: Include Scope Of Work and Terms & Conditions with your bid proposals so it’s clear to all parties what work you’ll be performing and under what conditions.
- Primes: DO a construction schedule and submit it to the Owner. It doesn’t matter if they reject it or change it. What matters is you have it on file and that you work according to YOUR schedule. It’s an ideal way to keep track of the planned construction schedule and a place to note causes for any delays, should construction run past the completion date and into liquidated damages.
- In the course of the project, DOCUMENT EVERYTHING! IN DETAIL!! Submit RFIs, send written confirmation of anything conveyed verbally, do detailed Daily Work Reports, …
- DON’T use Email for important communications: we often Email in haste without sufficient consideration, Emails can be altered to show that you wrote something different, Emails are often lost and unavailable when needed as backup for a claim, … IF you do Email something, put your message in a written letter that you attach, rather than as content only in the Email.
- Make sure Change Orders are approved per the requirements of the Contract Docs. If it specifies all changes must be submitted and authorized in writing, which is likely, DON’T act on verbal change requests or you’re in breach of contract. In the change orders, DO NOT let the Agent/Owner leave the ‘time for completion extension/reduction’ field blank (or TBD). You want them to acknowledge how much their change will affect your schedule. ON A RELATED NOTE: Be aware of who the authorized Owner’s Agent is and how far their authority extends.
- FILE “Notice of Potential Claim” forms anytime you perform ‘questionable work’ (for example: your RFI isdenied because the Owner claims the noted work is actually included in the Contract Docs; meaning you’re obligated to perform the work but you might not be paid more for it).
- Arbitration is the great lie - it can be as expensive as litigation and you have no right of appeal.
- If your bids are successful 1 out of 15 times, you’re beating the odds and the market, but is it for the wrong reasons? You should carefully evaluate your bidding practices: prices, compliance with contract docs, mistakes in bids, failed or absent job cost accounting, historical cost & bid data, bidding projects out of your scope of expertise, …
These are just a few highlights from the many valuable lessons covered by presenter, Ben Di Duca, local attorney & contractor. If you missed this informative seminar, bid with care and watch for our next Public Works event. The number to contact Di Duca Law, PC is (530) 343-3454. www.diducalaw.com
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