As they say, knowledge is power. The key to making a wise business decision is being educated on the subject. So if you are ready to have any pavement work done around your business, large or small, this is what you need to know before you even think about call a contractor.

Bidding a Pavement Project

1. Request For Proposal (RFP)
This is a method that is widely accepted within the industry when a client has a specific problem and needs that problem corrected. The client has an RFP prepared that clearly specifies the scope of work. This is usually done by an independent source, like a pavement consultant, reserve study engineer or by a contractor you trust. Once this scope is created, it is typically sent to three to five contractors and a pre-bid meeting is scheduled. A pre-bid meeting is another widely accepted practice within the industry. It involves the client, board members, building owners, anchor tenants, and the three to five contractors you picked. This meeting is designed to provide all key parties the opportunity to have a question and answer session. Usually, the RFP is tweaked at these meetings and little changes are made to accommodate either the contractor or the client. A successful pre-bid meeting will have the contractor leaving with a clear understanding of how he/she is to perform the scope of work. And, the client will leave knowing they are going to receive apples-to-apples bidding. It is vitally important that every contractor bid the RFP the same way. The client should avoid at all costs the instinct to send three to five contractors to a site with directions to “evaluate the property and bid the way you think it should be corrected”. This usually produces three to five different scopes of work with wide ranging price swings.

2. Reverse Bidding
This type of bidding has become more popular as budgets have become smaller. When a client needs more work, asphalt patching, sidewalk repairs, etc. then they have budgeted for, the client reveals their budget number to several contractors. For example, “I have $15,000 in the budget for asphalt repairs.” Those contractors then produce competitive bids on the volume of work they are willing to complete for $15,000. For example, contractor A will complete 275 square yards of repair, contractor B will complete 325 square yards of repair, and contractor C will complete 300 square yards of repair. In this scenario, the client would pick contractor B because they are giving you the best value. Once a contract is awarded, the client and contractor would visit the site and determine the worst 325 square yards of repair. If this practice is repeated year after year, a client can usually get a handle on an out of control pavement situation within a few years.

Hiring the Right Contractor

Once you have received an ample number of bids it is time to hire a contractor. You should ask for the following from your pavement contractor:

1. Contractors License: Every state has its own departments of licensing and regulation. This is the agency that issues business and contractors licenses. Make sure any contractor you use is properly licensed. ( My Contractors License Number is MHIC # 51204 )

2. References: Most reputable contractors are eager to furnish references. Check to see if the jobs were performed to satisfaction in a timely, professional manner.

3. A warranty: Too often, business owners or property managers find out after a disappointing experience that there is no warranty on the work. If a warranty is offered, get it in writing. Most contractors place their warranty information on their proposals.

4. A certificate of insurance: These are simple form letters sent out by request from the insurance company that insures the contractor. General liability and workers compensation insurance is easily attainable for legitimate companies.

5. Do not pay full cost in advance: Most state laws prohibit contractors from receiving more than 1/3 of the contract price at the acceptance of the contract. Find out the terms of payment and avoid contractors that only accept cash.

6. Get it in writing: Always get a written contract before you permit work to proceed. This should detail when work is to begin, the exact details of the improvements to be made, the quality of material to be used, an estimated completion date and payment terms. Read the entire contract before signing, including any small print.

If you have any questions, contact PTG Enterprises by calling 443-463-1536 or click here today!