Table of Contents

• Ranch House Subs Tab Scope of Work
• Define the Line Items and Materials for Each Subcontract
• Estimate the Labor and Material Cost of Subcontractor Items
• Identify Allowances for Subcontractor Jobs
• Interpret the Bids
• Level the Bids

Ranch House Subs Tab Scope of Work

This assignment will require you to use Bid Levelling to find the best combination of subcontractor bids for these subcontracts:

• • Plumbing
  • Electrical
  • HVAC

The steps for completing the above work are as follows:

1. Defining the line items for each subcontract.
2. Using the NCE to estimate the material and labor costs for the subcontractor items. This will give you a good idea of whether the submitted bids are fair or not.
3. Identifying any allowances for subcontractor line items.
4. Interpretting and levelling the bids.
5. Completing the line items in the Ranch House Estimating Workbook.

Define the Line Items and Materials for Each Subcontract

1. Look at the Subs tab of the Ranch House Estimating Workbook. The cells highlighted in yellow will help you determing the material and labor line items to be handled by subcontractors.
2. Check the line items against the Specification Sheets in the Ranch House Plans. Note any discrepencies and move onto the next step.

Estimate the Labor and Material Cost of Subcontractor Items

You do not want to be taken advantage of by unknowingly accepting a bid that is grossly overpriced. If you do not have enough experience in the construction industry or in your area to have rough idea of what subcontracting jobs should cost, you should strongly consider using a cost data manual to estimate them. The basic process for doing so is as follows:

1. Identify the subsection of the NCE that corresponds to the subcontractor work being estimated
2. Find the closest approximation to the material/line item you are estimating.

• • Example: The exact cabinet size for which you are estimating install labor is not in the NCE list, but one that is very close to external dimensions and features is listed. Use that item to estimate labor. It is an estimate, afterall.

3. Identify the Craft Hrs, Size, Units, Unit Cost, and Quantity, and input those values in the Estimating Workbook.

• • Some of these values might not be present in the NCE. In that case, review your other documents to see if you can find the information. Building plans are helpful for identifying specs and quantities of many subcontractor items like cabinets and appliances.

Identify Allowances for Subcontractor Jobs and Line Items

Refer to the Specification Sheets in the Building Plans to find any allowances specified for various cost items that fall under subcontractor jobs.

Interpret the Bids

1. Look at all the bids for a specific Subcontractor job.

• • This is not always as clear as it would appear. Sometimes a subcontractor can do multiple line items outside the scope of one specific subcontractor job. For example, a mechanical company could do items from both the electrical subcontractor job and the HVAC subcontractor job.

Comparing Subcontractor Bids Walkthrough Video, 5:27 mins

2. Identify any scope gaps found in the bids. Are there items outlined in the Specification Sheets and the Estimating Workbook that are not included in a bid?

Identifying Scope Gapes in Subcontractor Bids Walkthrough Video, 2:48 mins

3. Do the bids include Alternates, which can be added to bid for a specified price?
4. Identify any quality gaps between bids. Are some bids providing pricing on items that do not meet the specifications for the project?

Level the Bids

After reviewing all the bids, your job is now to choose the best and least expensive subcontractors to do the specified work. Bid leveling is a great way to make the best decisions on which bids to accept.

Use a Bid Leveling Spreadsheet to get all the bid information in one place, look for scope gaps, then choose the best bid that fulfills all of the job requirements. This will allow you to get the best overall subcontractor pricing.

Bid Leveling, Applying Alternates, and Requesting More Information, 5:40 mins