Welcome all Small Businesses

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Welcome all Small Businesses

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House Rules

• Safety First

• Exits

• Restrooms

• Refreshments.

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AgendaWelcome

Introduction of TeamPresentations: Bidding Style Mike RoodMore than Hard Hats Clark PetersonProject Information Kurt Thomas

Trevor Kelly & Audra T. Iturbe Networking

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Regional Connector Constructors

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Estimating

April 24, 2013

Presented By:

Mike Rood

Bidding Style: Design- Build

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Estimating

• What is the Definition of a Good Estimate?

• Quantity Take-offs

• How do You Break it all Down?

• What Happens if You Miss Something in Your Bid?

• What Documentation do You Need?

• What are Bid Items?

• What are Indirect Costs?

• How do You Handle Material, Equipment, and Labor Escalation?

• What Will the Primes Expect to Get From Your Company?

• How Do You Validate You Got it Right?

• Ethics and Integrity

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A “Good Estimate”

• More than just a number

• Relationships, relationships, relationships– Design-Build becomes Bid-Build

• Patience and understanding– Request feedback– Prime(s) can only say so much– Keeping it fair, ethics & integrity

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A “Good Estimate”

• Costs are covered

• Specifications are understood

• Schedule is understood

• Scope of work is complete

• Risks are analyzed and shared (Owner/Prime or Prime/Sub)

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Quantity Takeoffs

• Are you measuring the right things?– Alignment with scope and what you’ll track in the

field

• Are you performing checks?

• How are you coordinating with the Prime?– Share your information– Don’t take their “word” for the quantities

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Break It All Down

• Defining your scope

• Standard inclusions & exclusions

• Get involved early with the Prime–Stay involved with questions and

clarifications

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Are You Missing Something?• Are you confident with your quantity takeoff?

• Do you have a list of assumptions maintained during your estimating process?

• Defining Risk– What might go wrong / well?– How can you mitigate?– What is the potential impact?– What is the probability of occurrence?

• Have you covered your share of the risk?– Relationships lead to less confrontation at the project site

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Required Documentation

• Specifications and Drawings– There is always some kind of Standard

• SBE / DBE Certification

• Previous project experience or references

• Project-specific requirements?

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Bid Items• Direct costs

• Used to track project progress and PAYMENTS

• Packages & Splitting– Size and scope of work– Can you provide more value?– Can you split work out?

• Help the Prime understand your capacity

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In directs

• Costs that span various Bid Items

• Do you have histories? Can you develop them?

• How will your indirect costs be impacted by growth or reduction in scope?

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Escalations

• Fuel, materials, labor, etc.

• How is your bid qualified?– Are you assuming the right level of risk?

• Does the Contract allow for payment for escalation?– Are there limitations?

• How long does your pricing need to be valid?– Communicate with the Prime

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What do Primes Expect?

• A “Good Estimate”

• Something you are willing to stand behind, and are excited to build

• Plan to put the effort/work into your proposal– How many man-hours is reasonable?

• Timely scope letters and pricing– Open & honest communication– We aren’t “shopping”

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Validate Your Efforts

• You receive the contract– Competitive pricing– Complete scope– Commensurate risk assumed

• You made money at the end

• Contact the Prime for feedback– Not at 3pm on bid day– How could my proposal have been better?– What you can expect to hear

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Ethics & Integrity

• This is the start and the conclusion

• Skanska, Kiewit and Traylor have built their businesses on these core values

• Don’t sacrifice yours for the almighty dollar!

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POP Quiz

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Q1

An indirect cost is:a. A cost that is only incurred on some projects.b. A cost that is spread against all bid items on a

project.c. A cost that is reimbursable regardless of final

quantities.d. A cost that does not get paid for.

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Q2

The best time to call to discuss how your bid went with the Prime is:a. 20 minutes after the official bid time.b. At least 2 weeks after bid day.c. The day after bid day.d. 10 minutes before the bids are due.

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Q3

Prime contractors should provide you with a breakdown of the three lowest bids received and where your bid stood.a. Trueb. False

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Q4

A good relationship with a Prime will get you a job, regardless of your price.a. Trueb. False

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Q5

Your inclusions/exclusions list should be:a. All-encompassing. Leave nothing to chance.b. Complete, but not a novel.c. Standardized for your business.d. Both a. and c.e. Both b. and c.

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Q6

Your pricing should be valid fora. At least 30 daysb. At least 90 daysc. The life of the Contractd. The time requested by the Prime

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Q7

Your scope letter should arrivea. about a week before the due date.b. at least two weeks before the due date.c. with your pricing on bid day.d. when the Prime asks for it.

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Q8

A quantity take-off for self-performed work should bea. independently double-checked for accuracy.b. compared with the Owner’s pay quantities.c. completed under a standardized process.d. based on the Owner’s plans and

specifications

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Q9

Primes that share pricing information about other subcontractors area. good to speak with. You can get information

to help with your pricing.b. generally interested in your success.c. probably going to be the low bidder.d. Probably sharing your pricing with someone

else, too.

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Safety Information

Beyond the Hard Hat

Clark Peterson, H&S Director of Western Region

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Beyond the Hard Hat

• Policies / Specifications• Procedures• IFE• Leadership

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Beyond the Hard Hat

What are the barriers to Safety Excellence?

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Beyond the Hard Hat

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Project Information

Regional Connector Corridor Pursuit

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Project Overview

• Regional Connector Corridor Project• Issued by LACMTA, Contract #0980 • Design-Build, Firm Fixed Price• Purpose to provide a one-seat ride from the East Side through to Long Beach or Santa Monica, visa-versa

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Project Overview

• 1.86 Miles of Twin Tunnel• 1,350 feet of cut/cover construction• 4,800 feet of bored tunnel • 2,270 feet of track reconfiguration

• 3 Underground Stations• Approximately 400 feet each cut/cover

• Utility relocation and temporary support• Street improvements, reconfigurations, signal mods• New and integration of electrical and systems• Other misc work in Red Line Yard

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Project Overview

Major Challenges• Wye Intersection• 2nd St. Storm Sewer Relocation• LA Times Building• Project Staging, MOT, Bus-Arounds• Systems and electrical integration/tie-in• Utility Relocations and Coordination

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Project Overview

Procurement Schedule

Deadline for Questions/RFI about RFP May 28, 2013

Proposal Due Date June 18, 2013

Oral Presentations (if any) Approximately the week of July 8, 2013

Issue Notice of Intent to Award (tentative) October 11, 2013

Award of Contract October 29, 2013

Notice to Proceed December 2, 2013

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Project Overview

Metro’s Construction Schedule

Notice to Proceed December 2, 2013

Begin Systems Testing March 6, 2019

Substantial Completion June 20, 2020

Contract Completion October 28, 2020

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Project Overview

Subcontracting Opportunities Timeline

Receive Invitation to Bid Mid-May, 2013

Provide Pricing Beginning of June, 2013

Participate in design process Commencing December 2013

Work commences in the field Spring 2014 through to end of contract

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Project Overview

Subcontracting/Supply Opportunities

-Steel/Rebar

-Concrete

-Architectural Finishes

-Landscape/Hardscape

-Trucking/Hauling

-Construction Supplies

-Project Staff

-Environmental

-Design

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Project Map

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Design Build Procurement

• Be patient• Agencies talk about the projects 1 to 2 years in advance

of RFQ• Industry Review Documents 3 to 6 months• RFQ takes 3 to 5 months from start to shortlisting• RFP takes 5 to 6 months to respond• Agency takes 3 to 4 months to decide• LNTP issued• 3 months to execute documents for NTP• NTP issued• 8 to 12 months for meaningful construction packages to

be issued

Understanding the Timeline


Presented by: Audra Tiemann

Information available:• Project Brochure• Project Announcements• Join Our Bidder’s List• Team Information• Contact Information

The Skanska Traylor Kiewit JV team is committed to improving the process for subcontractor, vendors, suppliers and consultants to find and use upcoming project information. Our team has developed a SharePoint website that allows interested firms to gather information and be a part of our JV team

Outreach Website

www.teamrcc.com

http://www.teamrcc.com/


Follow steps 1-3 below:1. Fill out “Join Our Bidder’s

List” Questionnaire in full2. Submit3. Review your inbox for the

Invitation to Bid email.

Questions: [email protected]

How to Get Informed

mailto:[email protected]


Contract Documents To assist our subcontractors, vendors, and suppliers, we will be posting sample contract documents and other helpful information to include: • PLA• Sample Subcontract• Bonding Information • Metro Certification Link• Labor Compliance Manual• DBE Manual & Specs• Buy American Program Info• Drug & Alcohol Program

Items that will be available to Subs and Vendors:

− Scope specific bid packages

− Subcontracting Requirement information

− Important dates

− Announcements

Bidder Instructions


Are you prepared to bid?

Bid Preparedness

• What is a Good Estimate?• Quantity Take-Offs• What Documents Do You

Need• What are the

Subcontracting Requirements to be considered in your Bid?

• Insurance• Bonding


Bid Preparedness cont.

− How do you handle Material, Equipment and Labor Escalation

− What will the Primes expect to get from your company

− How do you validate you got it right

− Ethics and Integrity


• Perform a commercially useful function• Risk Analysis for the scope of work• Understand the bid requirements and

specifications for your scope• Make your bid competitive• How do you Submit your bid and When

Sub/Vendor Proposals Due:

June 6, 2013**pending any additional owner postponements

On a Design-Build project, every subcontractor/vendor must understand the time line involved in the process. I can be close to a year following the owner award before final bid packages are ready and construction begins. The estimated project start date is set for October 2013.Actual construction should start approximately 8 months after that.

Sub/Vendor Bidding Process

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We look forward to working with you!