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Ever
participated in a country auction that featured rare
antiques or collectibles? The novice enthusiast, in
the company of sophisticated collectors and dealers,
may feel totally out of place.
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.
Sincerely,
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