Construction projects are complex affairs with lots of moving parts that need to line up seamlessly or else problems will arise. This is why the proposal part of the process is so important. By making it clear who will do what and what everyone's expectations will be, the owner, the general contractor, and all of the subcontractors can rest assured that they are meeting their obligations when they need to be met.
Because uncertainties in the construction proposal phase are so likely to lead to serious problems later on for the project manager, the Massachusetts construction lawyers at the Katz Law Group take special care when they represent clients at this juncture.
What is a Construction Proposal?
The construction proposal lays out the scope of work to be performed on the project, the materials to be used, the costs, the timeline, and other details about each party's obligations during construction. The goal is to make it as clear as possible what is expected of all parties involved in the project.
As Massachusetts construction attorney David S. Katz explains, “Construction proposals can be made in response to a request for proposal, or an RFP, or an invitation to bid, or an ITB. Depending on the project, circumstances, and timeline in the project, they can be solicited or unsolicited, formal or informal, or even supplemental to an existing construction proposal that is currently in the process of being completed.”
What Does it Include?
Because the construction proposal is basically a contractor's pitch, or offer to complete work on the project, the proposal itself generally includes:
- The contractor's relevant qualifications and work history, to persuade the owner or project manager
- The scope of the project and the work that the contractor will perform
- A breakdown of the costs
- A proposed timeline
However, the complexity of the construction proposal often matches the complexity of the project. In many cases, the proposal can be numerous pages of detailed information. There can be several rounds of negotiation to hammer out the details, as well.
How to Evaluate a Construction Proposal
Project managers who solicit or receive construction proposals will have a lot of difficult decisions to make. Each proposal will be slightly different, and managers can make their futures miserable if they choose the wrong one.
Just a few tips for evaluating a construction proposal include:
- Do your due diligence on the contractor by calling not just the managers of the prior projects listed in the proposal, but also projects that the contractor chose not to list
- Make sure you fully understand your own needs and concerns; otherwise you cannot be sure that the contractor will meet them
- Look for signs that one proposal has isolated a risk that other proposals do not contemplate
Massachusetts Construction Lawyers at the Katz Law Group
If you are a construction project manager receiving construction proposals, or if you are a general or subcontractor submitting one, the construction lawyers at the Katz Law Group can help. Call their central Massachusetts law office at (508) 480-8202 or contact them online.
