Bidding Practices of Subcontractors in Colorado

Abstract

Despite their significant role in construction projects, subcontractors have not been given fair attention by industry researchers. The literature contains very few studies focusing on subcontractors' bidding practices. Subcontractors were contacted via a questionnaire to collect information revealing these bidding practices. This study details knowledge of actual subcontractors' bidding practices including the invitation to bid, bid submission, pre- and postbid negotiation, and the relationship with contractors. The results show that contractors' bid invitations are poorly prepared and contain very abstract information. Upon acceptance, a subcontractor prepares and submits quotations to all inviting contractors just a few hours before the main bid opening time. Some subcontractors attempt to induce contractors to divulge other subcontractors' quotations, but the majority of contractors refuse to release such information. On the other hand, some contractors shop for bids after the award of the main contract. All contractors negotiate with subcontractors after the award of the main contract. Timely payments and price fluctuations are the major elements of the negotiations. Suggestions are presented to contractors and subcontractors for improving subcontractors' bidding practices.