Scope alignment across bid packages means every bidder is pricing the same, fully quantified work, so an owner or general contractor can compare quotes line for line and know the budget covers everything that has to be built. Most projects fall short of that, and the gaps show up later as exclusions, change orders, and uncovered scope.
Why Scope Alignment Across Bid Packages Is So Hard
In my world, I’m often brought into companies to help them identify opportunities for efficiencies, especially those that can be further enabled by technology. One area that has always posed a challenge for project owners and general contractors is the review of competitive bid packages provided by contractors or specialty subcontractors.
This usually happens as projects are still in the planning stages, and budgets are getting refined as the start/bid date for the project gets closer.
Polar Opposites Fuel a Disconnect
On one end of the spectrum there exists a rather tranquil world, where well-defined scope, quantities and statements of work nicely align so bidding parties understand exactly what is expected of them, and there is little room for exclusions and non-adherence to technical specifications. From my vantage point, this exists in only about 10-15% of all cases I see.
On the other end of the spectrum, there is a bit more chaos: the project’s scope changes rapidly as business decisions fluctuate and design iterations are released; poorly defined work packages are open to interpretation as to what will be included or excluded, and the bidding parties put almost as much time and effort into the careful wording of these inclusions and exclusions as they do arriving at a price for the work. Again, from my vantage point only, this exists in about 10-15% of the cases I see.
It’s Time to Refocus: 5 Checks for Comparing Bid Packages
Let’s assume for the moment that we cannot affect either of these extremes, and instead focus on the 70-80% of all projects that fall between these polar opposites. Here are some of the things an owner or a general contractor can do to mitigate risk and ensure budgetary coverage for the work to be performed:
- Scope quantification: One true measure of a clearly defined scope package is the ability to quantify the work and define the work packaging. Any additional requirements, such as additional mobilizations due to phasing of the work, should be communicated and considered within the bid package.
- Apples-to-apples comparisons: In the case where one bidder has defined exclusions, these need to be monetized to ensure proper coverage in the cost estimate.
- Split/no-split: When dealing with unit price proposals, it’s necessary to make sure those unit prices are contingent upon providing all of the scope. Review any of those unit prices that stand on their own if a combination of contractors/subcontractors is selected.
- Review status: Make sure all quotes have been reviewed to check for accuracy, inclusions/ exclusions, and risk associated with wide variances between quoting parties.
- Make sure all bidders have the latest scope documents: As scope changes, it’s important to ensure all quoting parties have the most accurate documentation.
Keep Scope Aligned After the Bid
Scope alignment doesn’t end when contracts are awarded. As design matures, scope keeps shifting, and added work is rarely matched by a budget increase. Tying every change to a cost code and reforecasting with each scope change, not just once a month, keeps the budget tied to the work that was actually bid.
The pressure is higher on design-build and other alternative delivery projects, where scope and price evolve together and a single engineering assumption can change quantities across several disciplines. When owners and contractors work from shared, connected scope and cost data, they can see that exposure as it develops.
For a deeper look, the webinar Mastering Scope Control: Strategies for Project Success walks through how each role on a project, from estimators to field superintendents, holds its own version of scope and how to keep those versions connected.
InEight Estimate helps owners and contractors run the quote management process and achieve cost certainty on their next project.
