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Module 3: Contractor Selection

  • Chris Antosek
  • Jun 8, 2025
  • 3 min read

3.1 Overview of the Owner’s Rep’s Role

During Contractor Selection, the Owner’s Representative acts as a facilitator and evaluator to ensure that the contractor chosen is capable, financially stable, and aligned with the owner’s project goals. The OR manages the bidding or negotiation process, evaluates proposals, and supports contract negotiations to protect the owner’s interests.


3.2 Step-by-Step Tasks & Best Practices

  1. Develop Procurement Strategy

    • Tasks:

      • Determine whether to use Competitive Bids, Negotiated Bids (CMAR or design-build), or Prequalified Contractor Roster.

      • Define bid package scope: complete CD set, specifications, general conditions, owner-OR agreement terms.

    • Best Practices:

      • Use a Standardized Invitation for Bid (IFB) or Request for Proposal (RFP) template to guarantee consistency across bids.

      • Establish prequalification criteria: financial capacity, safety record, relevant experience, bonding capability.

  2. Issue Bid Documents & Conduct Pre-Bid Conference

    • Tasks:

      • Distribute bid documents to short-listed contractors.

      • Host site walkthrough and Q&A session to clarify existing conditions and owner expectations.

    • Best Practices:

      • Record minutes during pre-bid conference and issue an addendum capturing all clarifications.

      • Emphasize key project constraints (site logistics, material storage, traffic interfaces) to ensure contractors price accordingly.

  3. Receive & Review Bids/Proposals

    • Tasks:

      • Collect bids by the deadline; verify completeness (bid bond, alternates, unit prices).

      • Conduct a line-by-line analysis comparing costs, allowances, unit rates, and scope exclusions.

    • Best Practices:

      • Use a Bid Comparison Matrix (spreadsheet) to normalize proposals (i.e., convert allowances, allowances to actual scopes).

      • Check subcontractor lists, confirm builder’s risk insurance, and evaluate markups for change orders.

  4. Conduct Contractor Interviews & References Check

    • Tasks:

      • Interview top 2–3 bidders to assess team qualifications, proposed schedule, and approach to quality control.

      • Contact references to verify past performance: on-time delivery, budget adherence, safety record.

    • Best Practices:

      • Prepare a standardized interview questionnaire focusing on risk management, communication style, and contingency planning.

      • Visit completed projects (if feasible) to observe workmanship and site management.

  5. Negotiate Contract Terms

    • Tasks:

      • Draft or review the Construction Contract (e.g., AIA A101, ConsensusDocs 200, or owner-OR approved standard form) with amendments to protect owner (liquidated damages, performance bond, payment bond, warranty terms).

      • Negotiate allowances, unit pricing, contingency, schedule milestones, and payment terms.

    • Best Practices:

      • Include clauses requiring the contractor to submit a detailed CPM Schedule within 14 days of contract award.

      • Ensure that contractor understands and accepts the Owner’s Rep’s role in reviewing submittals, RFIs, change orders, and payment applications.


3.3 Common Pitfalls & How the OR Prevents/Solves Them

  • Pitfall: Low Bidder Doesn’t Have Adequate Capacity or Experience

    • Prevention: Prequalify bidders strictly—financial statements, safety records, license verifications.

    • Solution: If the apparent low bidder raises red flags (e.g., poor references), the OR solicits clarification or moves to the next qualified bidder.

  • Pitfall: Ambiguous Contract Language Leading to Claims

    • Prevention: The OR works with legal counsel to ensure the scope of work, allowances, unit prices, and exclusions are clearly defined.

    • Solution: If disputes arise over scope, the OR facilitates a mediation session, referencing the contract’s clarifications and meeting minutes from pre-bid conference.

  • Pitfall: Schedule Milestones Are Unrealistic

    • Prevention: The OR requires bidders to submit preliminary CPM schedules showing critical path, major milestones, and float.

    • Solution: If the proposed schedule falls short, the OR negotiates schedule adjustments or aligns the owner’s occupancy expectations with contractor input.


3.4 Real-World Example

Case Study: Renovation of Historic Commercial Building

  • Scenario: An owner wanted to modernize a 1920s brick building. The OR prequalified three contractors with experience in historic preservation. After bid submission, the lowest bidder lacked adequate specialty trades for historic masonry restoration.

  • Impact: The OR disqualified the low bidder, awarding to the next best proposal whose masonry subcontractor had a proven track record. This decision saved the owner from future repair costs and schedule overruns that likely would have occurred with the low-cost but inexperienced bidder.


3.5 Transition to Module 4

With a contractor under contract, the Owner’s Rep shifts focus to overseeing construction execution. Module 4 will delve into Construction Monitoring—tracking progress, managing communications, and ensuring that work aligns with the design intent.


👉Click to Read Module 4


 
 
 

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