Bidding Oversights That Can Destroy Profit Margins

1. Commissioning Services
Look for Electrical Commissioning Requirements in the contract specifications.
Where to look?

  • Labor Hours: Watch base spec labor hours & overtime.
  • Testing: Specs could call for numerous tests not provided.
  • Temp Equipment & Connections: Possibly required based  on testing.
  • Look for specification #230800 and 260800 for  commissioning scope of work required by the contractor

2. Seismic RequirementsLook for additional section 220548 and 230548 which adds structural requirements.
3. Third Party Inspection & TestingIf the contractor is responsible for third party Inspections & Testing, this could add thousands to the bid price.
4. Overcurrent Protective Device Coordination StudyLook for specification 260573 (or 16475) Responsibility may be on electrical contractor to prepare short circuit coordination and arch flash studies, set breakers, install labels, etc. Could add up to $5,000 – $50,000. Seek competitive pricing from a qualified engineering firm as an alternative to the equipment vendor/supplier/distributor.
5. Bidding on the wrong or incomplete setReference the contract drawings, dates, revision #s, addendums, RFI’s, etc. in the bid” & review other trades drawings for hidden scope.
6. Sub Par or Incomplete DrawingsToday’s economy may force professionals to work on, and contractors to bid on, jobs not typically in their wheelhouse. Have your preferred engineering firm review the bid documents for potential errors, omissions or scope of work buried in the drawings or specs.
7. Call your Engineer to assist with increasing your profit margin by preventing costly bidding oversights.

Most Recent Entries