The highest submitted bid usually determines who brings the item home. A thorough understanding of the bid item, including its overall condition and its value within the broader marketplace, is key to determining the right purchase price. For many novice attendees, just sitting on their hands and appreciating the entertainment value of such events may be enough. Of course, some folks ‘want what they want’ and pay little attention to such matters as condition and market value. Perhaps later, at home, they find that their enthusiasm has waned. In the construction business, the use of bidding has been a way to buy services since the early 1900’s. Just as in the country auction, price -and price alone- is often the main determinant in securing products or services. In construction, the lowest bid often secures the job for the contractor. Undoubtedly, there are clear-cut circumstances when such a delivery approach makes sense to a project owner. Sometimes, however, this process simply doesn’t make sense. As a Company that understands and appreciates the unique benefits associated with owner collaboration, project teamwork, and pre-construction planning, Trumbull-Nelson frequently avoids participation in low-bid service proposals. Too often, we are a witness to the many problems and evolving conflicts on low-bid projects where the sole selection criterion was a contractor’s price. Astute owners recognize that initial building costs represent a small portion of a facility’s total life-cycle costs. By accepting today’s lowest bid, an owner may be inadvertently creating future costs, related to maintenance, repair or insurance. Choosing a Construction Management or Design/Build delivery method provides an owner with advisory professional management assistance, and the benefit of pre-construction services. Ideally, both methods promote communication among all project participants, and help to create value for each customer. Country auctions can be lots of fun. It’s great to know when to participate in a bid contest for that unique auction treasure, and when the stake is too high to be involved. Clearly, for some participants, a gap may exist between their perception of an item’s ‘price’ and ‘value’. Trumbull-Nelson is currently participating in many projects within New Hampshire and Vermont. A few current projects include Riverglen House, in Littleton, NH; Stratton Mountain Club, in Stratton Mountain, VT; Eagle Court, in Keene, NH; Hanover Senior/Community Center, and Our Savior Lutheran Church, both in Hanover, NH; Thetford Elementary School, in Thetford, VT; and P.J. Noyes, in Lancaster, NH. Trumbull-Nelson is also involved with a number of smaller commercial and residential jobs within Hanover and Lebanon. We hope that you will enjoy our Fall 2002 Issue of Constructive Images. If we can provide any assistance to help you move your construction Project forward, or if you would like to talk about your building ideas, please give us a call.
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Trumbull-Nelson • General Contracting & Construction Management |