Land Development Playbook

BID PROCESS The competitive bid process is an essential component of all projects and is critical to ensuring Century is receiving a high-quality work product, delivered on time and for the lowest possible cost. The bid process traditionally focuses on construction and development scopes of work but also relates to consulting services. The scope codes and schedule tasks, both as previously defined, are communicated from the division project team to prospective bidders, and the information collected from the bidding process is utilized to update these same schedule and budget items. The bidding process is also an opportunity to continuously collect data on current market pricing and interact with existing and prospective vendors/contractors. The division must generate and include bid sheets within the bid documents. All bids must be returned and received in the same format for clear, accurate, and apples-to-apples bid comparisons. If divisions do not have a system for bidding, please reach out to NLD for their comprehensive cost management system and training. A complete electronic bid package is to be provided to all bidders, which includes the following: A Invitation to Bid (ITB) narrative describing the project and expectations for bidders. A Scopes of work that enable bidders to thoroughly understand the bid requirements and associated contractual obligations. Sample scopes are in the National Land Development Files in Share Point. A Preliminary schedule with a request for contractor task durations. A Soils Report. A Phase 1 Environmental Site Assessment. A Grading Plans/Improvement Plans/Landscape Plans/Construction Drawings specifically noting the date of plans and approval status. A Bid Doc file including all project docs and construction documents, not just the bid scope plan set. This ensures all Trade Partners have been provided with the opportunity to identify conflicts at bid and avoids future change order requests. A Applicable Pricing Agreement template so a new bidder sees the contract language at bid. A Invitation to Bid (ITB) will be sent to at least 3 different qualified bidders for every scope of work (5 preferred when available). o Multiple bidders are required to ensure competitive qualified bids in addition to providing secondary options if a winning bid cannot contract or perform the scope of work. Expanding the stable of vendors/contractors helps lower LD costs, decrease LD Schedule timelines and allows divisions to build relationships if continued division project growth and workload require additional support. INVITATION TO BID

A A complete list of qualified bidders should be maintained and documented by the division, which will allow for data aggregation over time for contractor/vendor engagement and performance. A Any exceptions to bidding policy must be approved by NLD and documented within the AMC closing/LD Start memo(s). A Engage all bidders in the MSA and Build Pro payment process prior to bidding. Any bidders not previously set up as an approved vendor should receive the MSA within their bid documents to identify contract issues prior to accepting the bid.

BID PACKAGE RECEIPT

Bid package receipt starts when receiving complete bid packages from solicited vendors/contractors by the requested date. The division team should acknowledge receipt from the vendor/contractor and save the submitted packages in the project folder. It is important to retain the integrity of the bid document files, both what was sent out and received for documentation and support in a potential future contract dispute or challenging change order requests.

Returned bids should include (as requested in the Invitation to Bid package) the following required items:

A Contractor task durations for each scope of work. A Completed bid sheet for each scope of work. A Bid document acknowledgment form.

BID SPREAD PROCESS

Bid spread is the evaluation and comparison of the quantities, unit prices, total costs, and duration for a scope of work. It is possible to evaluate bids in several ways. General Contractor, turnkey, and piecemeal (individual detailed bidding) are all acceptable, but work to get as much quantity and unit price data per cost code/category as possible. The NLD cost management system can provide a standardized process to award work through a comprehensive bid spread analysis when the division does not have a bid comparison process. An important and often overlooked aspect of the bid spread process is comparison to budget and challenging bidders on their quantities and unit prices.

IMPORTANT: We do not increase the budget because the low bid was higher than our budget without challenging the trade partner and/or supplier.

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LAND DEVELOPMENT PLAYBOOK | Bidding and Contracting | 32