Beacon News

January 2015

For complex construction projects, it can be difficult to determine if the “low bidder” is the right company for the job. In the worst-case scenario, low bidders have greatly under-estimated a project. Underbid projects can result in a wide-range of problems from delays and low-quality results, to contractor default. In other cases, two bidders may provide proposals that are very similar in total cost. In this situation, it’s necessary to carefully evaluate the competing bids to determine which bidder is the most qualified based on a wide variety of factors.

Beacon’s Construction Bid Review services represent an invaluable risk-management solution. Our team has extensive experience in reviewing construction project bids to determine:

• Are the costs realistic (based on best practices for estimation and prevailing costs for services and materials)?
• Does one bidder have a unique “competitive advantage” (such as extensive experience with similar projects or owning certain critical equipment) that enables them to complete the work at a very low cost?
• Do competing bids reflect a clear understanding of the full scope of work for the project?
• Does one vendor have a much greater chance of successfully completing a project, even though they have a slightly higher bid?

Beacon’s depth of experience in construction project cost analysis can be invaluable for evaluating bids and identifying the most competent contractor to complete a project on time, within budget, and with a very high level of quality.

Contact Beacon Consulting Group, Inc. for any construction-bid-review assignments, construction consulting/management projects, or surety consulting needs.