ACI has always strived to be at the forefront of innovation in the construction industry. This includes new ways of organizing projects. Today, we are sitting down with George Ray, President and Owner of ACI, to talk about a more in-depth understanding of their streamlined design-build process. 

*Remarks have been edited for clarity*

“Design-build is a project delivery method that kind of takes the place of design-bid-build. What it does is creates a team of the designer, architect, engineer, and contractor in an effort to streamline the process and reduce cost and eliminate errors and confrontations during a project. We have used design-build for every type of project out there. There really isn’t a project that would not allow design-build to be used. Even more recently, with the use of design-build and municipal projects, or government projects, we’ve partnered with Sourcewell which allows us now to do design-build with government entities. So really, design-build replaces the standard design-bid-build that a lot of people are familiar with. The benefits of design-build, as I mentioned earlier, are time savings and cost savings. That’s achieved because during the design process you have all the entities involved. You set up meetings with the owner, with the architect, with the engineer, with the contractor. We come together as a team and we look at all the different options for materials and methods of construction for a particular type of project and really come to a conclusion as to what’s the best for that project. And by everybody buying into it, there’s no animosity about “well this would have worked better, that would have worked better.” Again, that team approach saves you time and it in the long run saves cost because you know everybody decided on a method upfront.

Thank you for watching. we appreciate your time and if you have any more questions don’t hesitate to look at our website or give us a call, we certainly can help.”

[Music]

Whether you have worked with the National Joint Powers Alliance (NPJA) or are brand new to the community, you have probably noticed that it has undergone some major changes over the last year. NJPA is now Sourcewell, and they are celebrating 40 years of partnerships by making sure you know exactly who they are and how they contribute to this industry. 

Many times, the traditional bid process results in accepting the lowest bid and not getting the quality you want and need for your project. Additionally, it almost always takes much longer than anticipated to get a project completed. The concept behind Sourcewell is to act as a bridge between government, education, and nonprofit agencies and organizations that offer solutions, such as:

• Construction and landscape companies
• Food and food equipment services
• Fleet management services
• Outdoor equipment retailers
• Inventory management companies 
• Information Technology services
• AV equipment services for classrooms
• Office and home supplies distributors

With Sourcewell, there is a better way to buy the quality you need without the extra expenses and time delays you don’t need. State and local government agencies, educational institutions and school districts, and nonprofits can get quality construction without having to go through the low bid process. Sourcewell is a national cooperative purchasing organization that has done all the hard work for you. 

As a government agency, Sourcewell satisfies the bid requirement through its legislative authority for members across the country. They manage the competitive bid process, qualify all the bids, and award the successful bidder, all while maintaining the entire paperwork trail for each member. Sourcewell ensures its members get a best-value solution for quality products and services under a fixed price. They vet each and every vendor to ensure the best possible matches are recommended and taking the competition out of the solicitation process. 

After completing the competitive bid process for their Sourcewell contract, ACI’s partner, BlueScope Construction®, was successfully awarded their second design-build, turnkey construction contract. BlueScope Construction holds the Sourcewell contract and partners with ACI to supply the Butler® building factory-direct at a discount while ensuring the work is performed by local designers, subcontractors, and vendors. School Superintendent Virginia D. Potter at Bethel Local Schools in Ohio explains how buying construction through Sourcewell worked for her: 

Recently, I was confronted with the need to add a 3-bay addition to our district’s bus barn. Realizing that it was going to be a costly venture, I cringed at just the thought of starting the bidding process! I was on a time constraint and knew how long that process could take. It was at that time I was introduced to BlueScope Construction, a general contractor that specializes in commercial and government facilities. They offered complete planning and budgeting from project conception to completion. Unlike other companies, BlueScope Construction was part of Sourcewell, a national cooperative contract company. Sourcewell creates cooperative contract purchasing solutions on behalf of their members which include all government, education and nonprofit agencies nationwide. As a result of this alliance, I was able to forego the bidding process and start my project in half the time!

As someone who considers time a precious commodity, I readily encourage other district Superintendents to consider companies who are part of the Sourcewell process. Not only was their pricing competitive nationwide but also their ability to save time and, of course, some of the headaches that come with any sizable building project!

With over 67,000 member agencies nationwide, I’ve discovered that many of our local government entities are already Sourcewell members. Membership is free and there are no obligations for any government, education or nonprofit entity. These organizations use Sourcewell for their supplies, services, equipment, and construction for their facility needs. Whether you need a new building or an expansion to an existing building, ACI can help with a quality design-build solution. 

As the community grows, Sourcewell is also becoming an essential partner for vendor contracts, with a catalog of the most qualified companies to choose from based on needs and geography. Once you qualify to be listed as a Sourcewell-approved vendor, potential project partners are more likely to look at your offerings with a sense of trust because of Sourcewell’s extensive vetting process. Sourcewell offers both cooperative purchasing and solicitation services.

Contact an expert at ACI today to learn more about how Sourcewell contributes to alleviating the anxiety many organizations and vendors deal with during the traditional bid process, or to discuss how ACI, BlueScope, and Sourcewell can make your next construction project simple and successful.

 

 

People commonly use “bid” and “estimate” interchangeably, but each word carries a distinct meaning when it comes to the construction process. Bids and estimates refer to decisions made and offers given during separate phases in the proposal process. Learning the proper usage of these words and the stages with which they pair is important when embarking on a project.

Estimates

An estimate is exactly what it sounds like: an estimation of what the completion of a project will cost. Contractors research and pull together the expected price of materials, labor and subcontracts. They use this information to calculate profit and then come up with an estimate to present to the potential client.

A price estimate is meant to give customers an idea of how much money it will take for them to hire the contractor for a job, but it isn’t a concrete commitment. The estimate provided to a customer is not expected to be 100% accurate, but it should fall within the ballpark and usually includes several assumptions as all the details have not been decided. Customers count on estimates to get a perspective on the range they need to set for their budget. Estimates are often provided by contractors for free, but sometimes there is a charge as a great deal of time and effort goes into providing a proper one.

Bids

Once a contractor and client express a mutual interest to collaborate on a specific project based on several factors such as time, estimate, and qualifications, then an official offer is made. This fixed price offer is called a construction bid. Bids are usually documents that are submitted to the customer for review and acceptance. They often contain an outline of the job, detailed pricing, detailed drawings and a time frame with a proposed date of completion.

Bidding construction projects is not an exact science. There are many variables that go into every phase of a project such as labor productivity, material price fluctuations, weather conditions and market conditions. Most successful construction companies include additional margins in their bids to cover these changing circumstances. That way, if a few extra pieces of lumber are needed or a couple more gallons of paint, the additional cost won’t fall on the client. If the bid is accepted, the contractor is then committed to carrying out the work described accurately and on time.

If there are time constraints attached to a particular project, the procedures for estimates and bids are subject to change. For example, if an estimate is provided and a customer wants to move forward swiftly with the offer, that estimate might roll over into a bid so that work can commence. An accurate estimate evolves into a precise bid, and therefore, each phase of cost calculation is equally important when planning the finances of construction.

For additional information, or to speak with an expert about getting an estimate or bid for your next project,  contact Associated Contractors today.