As a Commercial General Contractor, we’re often asked why we steer away from the process of Hard Bidding and opt for a more negotiated process to serve our clients. At the surface, hard bidding seems like a great idea and could create healthy competition. However, at The Douglas Company, we firmly believe that hard bidding is actually detrimental to our clients, causes inflated project costs, and can create a reactive environment to project management.
What is ‘Hard Bidding’?
Before we get to why, first let’s discuss what ‘hard bidding’ entails. Hard Bidding is a process that includes sending out a complete set of construction documents to a list of anywhere from two to five General Contractors. The companies will then go to the subcontractor market for pricing and put together a proposal, which will be compared side-by-side by the ownership group. These companies know that these situations are extremely competitive and the...
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