Bidding & Contractor Selection

Once designed and permitted, you select who builds it.

Delivery methods

• Design-bid-build — design is finished, then you bid it to general contractors and pick (often low bid). Clear price, but slower and less collaborative.
• Design-build — one entity designs and builds. Faster, single point of responsibility.
• CM at Risk / GMP — a construction manager joins early, then commits to a guaranteed maximum price. Collaborative with cost certainty.

Selecting a contractor

Look beyond price:

• Relevant experience and references
• Financial strength and bonding capacity
• Schedule and current workload
• Key people who'll actually run the job

Buying out the job

The GC solicits subcontractor bids, levels them (apples to apples), and assembles the price. Watch for scope gaps — uncovered scope becomes a change order later.

Going Deeper (Intermediate)

The developer selects contractors (for horizontal site work and/or vertical building) by bidding or negotiation, judging price, qualifications, schedule, and reliability — not price alone. The delivery method shapes risk and speed.

Advanced / Pro-Level

Pick the structure that fits the risk:

• Delivery methods: Design-Bid-Build (low bid, sequential, more owner risk on coordination), Design-Build (single source, faster, fewer change orders), CM-at-Risk (a GMP with early contractor involvement).
• Scope and level the bids, and prequalify for capacity, financial strength, and safety.
• Contract type: GMP vs. lump sum vs. cost-plus, with retainage and bonds.
• Align incentives (shared savings on a GMP). For a developer, contractor selection and contract structure are how the biggest cost and schedule risks are managed.

Practice Challenge

A developer wants speed, fewer change orders, and a single point of accountability for design and construction. Which delivery method fits, and what's the trade-off? (Answer: Design-Build — one entity owns design + construction (faster, fewer owner-side coordination disputes/change orders); the trade-off is less owner control over design details and pricing transparency vs. design-bid-build's competitive low bid.)

In Practice

An owner picks the low bidder who was missing scope — and the 'savings' become change orders. Select on experience, bonding, and a complete bid, not just price.

Common Mistakes to Avoid

• Choosing on low bid alone
• Ignoring bonding and references
• Missing scope gaps in the bid

Takeaway: Pick a contractor on experience, bonding, and people — not price alone — and watch for scope gaps.

Educational content — not legal, engineering, or financial advice. Requirements vary by jurisdiction; always confirm with the local authority and your professional team.