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Large Capital Projects CAI NJ 2011

Dec 15, 2014

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How to ensure a successful bid process with vendors for large capital projects as well as routine contracts. Condominium Associations hire a management company to work with the board of directors in providing the best service from outside vendors. The role of the manager and the management company is to obtain bids, review, and provide recommendations to the Board of Directors.
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Page 1: Large Capital Projects CAI NJ 2011
Page 2: Large Capital Projects CAI NJ 2011

Jeffrey M. Logan

Taylor Management CompanyAAMC & AMO

Page 3: Large Capital Projects CAI NJ 2011

Ensuring a Successful Bid Process

Page 4: Large Capital Projects CAI NJ 2011

The Process

Page 5: Large Capital Projects CAI NJ 2011

Step 1

Define the Product or Service Needed.

Page 6: Large Capital Projects CAI NJ 2011

What Kind of Project?On-Going Service or One-Time Project?

Capital or Operating Cost?

Drainage Work ResurfacingGutter Repairs Landscaping

Page 7: Large Capital Projects CAI NJ 2011

The Process

Page 8: Large Capital Projects CAI NJ 2011

SNOW SEASON IS APPROACHING

July/August: Specs to Board for review

August: RFP’s to vendors

September: Obtain bids and call in vendors if Board is looking to interview

October: Decision made and contract signed

Timing is………everything!

Page 9: Large Capital Projects CAI NJ 2011

Creating the RFP

Be Specific!

A specific RFP: •Generates fewer questions from bidders•Ensures bids are tailored to your needs•Specify documents to be included (licenses, proof of insurance, etc.)

Page 10: Large Capital Projects CAI NJ 2011

Creating the RFP

State a deadline!

State DAY, DATE AND TIME of deadline that bids must be received by.

Questions?

Ask an engineer…..

Page 11: Large Capital Projects CAI NJ 2011

Distributing the RFP

Distribute to as many vendors as possible…..You WANT a competitive process!

Use Your Resources: Websites, Email, US Mail, etc.

Page 12: Large Capital Projects CAI NJ 2011

The Process

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Page 14: Large Capital Projects CAI NJ 2011

Reviewing Bid Analysis with the Board

Be fair and impartial – emotions and friendships must stay out of the process

Listen to each Board member’s concern/questions

Guide with facts, don’t make assumptions

Board members’ concerns/questions are the foundation of the interview process

Take your own notes

Page 15: Large Capital Projects CAI NJ 2011

Power By Numbers?

The lowest number doesn’t always win the job.

Page 16: Large Capital Projects CAI NJ 2011

The Process

Page 17: Large Capital Projects CAI NJ 2011

Making a Recommendation

The Board makes the final decision based on your notes from:

The Bid Analysis Review

The Interviews

The Reference Checks

The job of Community Management is to:

Educate the Board

Guide the Board

Assist the Board

Prepare the Board

Page 18: Large Capital Projects CAI NJ 2011

Interviewing the Finalists

How Many is Enough?

Don’t overwhelm - keep it simple

Qualifications?

Can speak confidently about history with type of project/work

Can estimate timeline based on scope of work

Can explain workplace safety program, OSHA compliance

Knows names of employees

Can communicate with Board well = “a good fit”

Page 19: Large Capital Projects CAI NJ 2011

The Process

Page 20: Large Capital Projects CAI NJ 2011

Did you check references? Really?

All of them? Even ones that weren’t given?

Page 21: Large Capital Projects CAI NJ 2011

Good References Mean….

Leaking Roof, fixed 3 times

Projects done to code

Page 22: Large Capital Projects CAI NJ 2011

The Process

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Nice Work?

Page 24: Large Capital Projects CAI NJ 2011

Management Involvement and Oversight

• Keep record of all change orders to match with invoices

• Review and match invoices with bid and/or change orders before approved or submitted for payment

• Have regular status meetings with contractor during active work

• Inspect work frequently• Managers Calendar

• Always keep the board informed

• Remember: You are not a project manager or an engineer. Bring in other experts as needed.

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Nice Work!

Page 26: Large Capital Projects CAI NJ 2011