Bidding is the very first task in any construction project, which helps the owners of the project and the contractors reach an agreement. This is the point where both of the parties share their requirements, concerns, expertise, and skills to make the project successful. Therefore, the involved parties need to handle this step with great care, instead of like a formality.
In progressive countries like the United Arab Emirates, national and international parties can take part in the construction project because of the mega-scale of projects. In such a competitive atmosphere, parties linked with projects need to be well prepared to win the bid and become a part of the project. It requires a little effort and homework on their end.
This article aims to shed light on some important points that the involved parties should consider in the bidding process of the construction projects.
Bidding is the process that helps the involved parties know about the requirements and capabilities of each other. This is also the step that helps them make an important decision regarding different steps and progress of the projects. It also provides them assistance in developing and following the schedule without facing any delay and resolve the claims, if any.
The following are the top questions that the involved parties need to ask while bidding on the construction project, in order to avoid future problems and ensure smooth progress.
Documentation is one of the most important parts of the construction projects, which should be considered from the step of bidding. The involved parties may need to share the documentation about their certifications, expertise, and ownership of the project. This is necessary to develop trust among them.
Apart from this, they need to keep the documentation of insurances, project schedule, cash flow, and other agreements they make in order to avoid any dispute in the future. Involved parties also acquire the help of construction claims consultants in Dubai to deal with the issues in the light of documentation and resolve it.
Pricing the work, different tasks, and specifications is another important part of the construction project management, which is often done in the bidding phase. The customers might have some special requests that the contractor needs to adjust to the projects.
However, making proof of such requests is crucial for the involved parties as such matters often lead the involved parties to develop a dispute if the things do not unfold in an expected way. So, you essentially need to ask the question that the pricing of customer-requested items is done or not.
Every product, service, or equipment in the market has a low, moderate, and high price, according to the quality of the facility. The same is the case with the prices of materials and services used in construction projects. So, the involved parties need to make an agreement regarding it as well.
They need to consider the scope of the project as well as its capacity while deciding about the prices. An important question to ask in this regard is that the price is competitive or not. If it is not competitive, it will only cause loss to the project and benefit the competitors in the market.
Risks are an inevitable part of the construction projects. However, it does not mean that the involved parties keep on working blindly while ignoring potential risks and threats. They essentially need to ask the question that risks are identified or not.
Moreover, identification of risk should be done in the bidding phase of the project. It will allow the involved parties to develop a framework in order to avoid or fix the risk. It will also allow them to fix the budget for such expected and unexpected issues.
Time is money in construction projects. So, one of the most important questions to ask in the bidding phase of the project is that enough time is specified for project completion or not. Time should be specified, keeping in view potential risks, opportunities, and delays.
Not getting enough time can make the parties compromise the quality of work or engage more workers, which will affect the cost of the project. Such matters can give rise to claims. So, you can hire the services of construction claims consulting firms and stay well prepared to handle any such issue before it causes any loss to the project.
Bidding is included in the construction so that the potential parties can discuss the issues, opportunities, risks, and benefits. They also need to reach a few decisions which can help them ensure the smooth progress of the project.
Once you are done with the bidding process, made the decision with mutual discussion and understanding, your role is not done. Constant monitoring of the project is necessary, which can be better done by experts, so involve them in your project and ensure hassle-free progress.
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