Navigating the Large Project Bidding Process: Strategies for Success

Homeowners Association construction projects can present unique challenges due to the nature of the community’s governance structure, the diverse needs and preferences of homeowners, and the regulatory requirements involved. When planning for your next project, the following can set up the association for success. Those steps include:
 

1)    Considering a qualified construction manager

2)    Performing pre-construction planning, and including a scope of work and funding;

3)    Acquiring qualified bids and;

4)    Keeping members informed throughout the construction process.
 

To hire a construction manager or not? That is the million-dollar question. While construction managers are considered an “extra” we’re finding more and more managers and boards are wanting a third-party expert to help guide them through the complex process of construction. Community Managers have many tasks on their plate at any given time and could benefit from the extra help when planning a project. A qualified construction manager can help to provide an outline for the project and set the guidelines to ensure its success. Developing an effective plan increases efficiency and can reduce costs.

Before diving into the bidding process, thorough research and analysis are paramount. This involves having a detailed scope of work, requirements, and specifications. Will the project need architectural services? Is the HOA funded for the project? It is highly recommended to start the project planning phase at least 9-12 months out from the project or sooner. If plans and permits are needed for the project, consider that different cities and counties will have timeframes for review.
 

After developing the project specifications, it is important to solicit bids from qualified contractors. If the HOA is not using a construction manager, it must ensure that only licensed, bonded, and insured contractors with the necessary experience are invited to bid on the project. Large-scale projects may require multiple crews and additional oversight, so it's crucial to select a contractor with relevant expertise. During the pre-construction phase, it is important to determine the project's price, duration, scope of work, and warranties. This is best accomplished by choosing an independent construction manager who is not affiliated with the contractor performing the work. This approach provides an additional layer of expertise and an advocate for the HOA.     
   

Your construction manager can educate the board and homeowners on the proper construction project phasing. They can be used as an arsenal of knowledge that the Community Manager or Board members may not have available.  The construction manager also monitors budget overages, change order approvals and payments and ensures that the project scope is being followed.
 

Choosing a construction manager may be an extra expense up front, but it is an invaluable investment that will cost less in the long run.
 

Dorian Jackson is a former community manager and current assistant project manager for A.D. Magellan, a firm specializing in construction management. Dorian may be reached at dorianj@admagellan.com.