Low Bid Doesn't Work: Exploring Alternative Delivery Methods in Oklahoma's Construction Industry
The Downside of the Low Bid Approach
The "low bid" method, while offering surface-level transparency, sets projects on a defensive stance from the start. Subcontractors often squeeze margins to secure work, which can lead to overlooked project scope and compressed schedules. This environment creates a "bid buyout" conundrum where general contractors must hunt for financial cushions to cover unforeseen challenges. The result is often a pressure-cooker environment of supply chain woes, overcrowded sites, and frustrated clients.
Alternative Delivery Methods
As we move past the limitations of the hard bid system, several superior methods emerge:
Design-Build: Integrates design and construction under a single contract. When executed correctly through a "design to budget" approach, it fosters rigorous collaboration to mitigate risks early.
Design-Bid-Build (DBB): A foundational pillar that often struggles due to a disconnect between design and real-time market costs. It frequently results in budget surprises where bids exceed anticipated costs by 50% to 100%.
Construction Management at Risk (CMAR): Aligns the manager’s interests with the owner by committing to a Guaranteed Maximum Price (GMP). Early integration allows for better input on scheduling and constructability.
The CM/GC Methodology: A Collaborative Future
The Construction Manager/General Contractor (CM/GC) method focuses on unparalleled team collaboration. By involving an Independent Cost Estimator (ICE), owners receive an extra level of assurance against overpricing. This method groups several programs into a comprehensive package to diminish time and cost while reinvesting accrued savings back into the project.
Conclusion
"Low bid doesn't work" is a call to action for the Oklahoma construction industry. Exploring alternative delivery methods isn't just about innovation—it’s about delivering true value, quality, and project feasibility for every client.