User: mannyb, Location: Florida
Asked on: Sunday, February 23, 2025 at 6:42 pm EST
Answered on: Thursday, March 6, 2025 at 8:58 am EST
Question: ScenarioIf a customer offers you a project to install 20.generators installations. You bid job and won. The customer provided no drawings for installation, the companybasically provided a bid and won basically without any reconstruction requirements. Trying to get quotes from electricians or plumbers seem impossible because they don't want to bid without drawing because they can't determine SOW.1. Would.you bid project without drawing etc?
Okay, let's break down this scenario and address your question. This situation is a classic example of the challenges of bidding a project with poorly defined scope.1. Would you bid a project without drawings, etc.?
Generally, my answer would be: No, I would strongly discourage bidding on a project with absolutely no drawings or defined scope of work (SOW). Here's why: Risk
The risk is extremely high. Without drawings or a clear understanding of the installation requirements, you're essentially making a guess at the labor, materials, and potential challenges. This greatly increases the chance of underbidding the project.
Cost Overruns
Without a clear understanding of the work, you're almost guaranteed to experience cost overruns. Things you didn't anticipate will arise, and you'll be forced to absorb those costs or negotiate change orders, which can damage the client relationship.
Inaccurate Bids
Since you can't get quotes without drawing then your cost numbers are just guesstimates.
Potential for Disputes
The lack of a clearly defined SOW opens the door to disputes with the customer. They may have certain expectations that you are unaware of, and you will most likely get into conflict about extra charges and or misunderstandings.
Subcontractor Hesitation
The difficulty in getting quotes from electricians and plumbers is a huge red flag. It indicates that the scope is too vague for them to accurately assess their costs and risks. If they don't bid, you will get no work done.
Reputation
If the project goes poorly due to unforeseen issues and cost overruns, it can damage your reputation.
Safety
Safety can be compromised if the installation isn't properly planned.
Permitting Issues
It's possible that there are some permitting requirements that you didn't plan for.
However, since you've already won the bid, we need to explore how to mitigate the situation.Now, let's analyze the situation and suggest some immediate steps
Here's what I would suggest you should do immediately:
Contact the Customer and Communicate the Issue
This is the most important step. Be professional and explain to the customer. Explain the issues you're facing. If you don't, the project will be difficult. It's in both your best interests to address it upfront.
Negotiate a Scope Definition Phase
Propose a new, separate phase to define the scope. Offer to create the necessary drawings and specifications. You can charge a fixed fee for this phase. Explain that this will protect both parties by ensuring a clear understanding of the work and preventing costly surprises later. This phase would include:
Site Visits
Visit each of the 20 locations to assess the existing conditions, potential challenges, and specific requirements for each generator installation.
Gathering Information
Collect all relevant information, such as existing electrical infrastructure, gas line locations, and any local codes or regulations.
Creating Preliminary Drawings
Develop preliminary drawings outlining the proposed generator installations.
Developing Specifications
Create detailed specifications for the generators, electrical connections, plumbing connections, and any other required components.
Subcontractor Consultation
Meet with electricians and plumbers to review the preliminary drawings and specifications, gathering their input and getting preliminary estimates.
Walk Away (If Necessary)
If the customer refuses to cooperate and insists on proceeding without a proper scope definition, you may need to seriously consider backing out of the project. The potential for financial losses and reputational damage may outweigh the benefits of completing the project. This should be a last resort, but sometimes it's the best option.
Document Everything
Keep a detailed record of all communications with the customer, as well as any costs incurred in attempting to define the scope. This documentation will be essential if you need to negotiate a change order or defend your actions in the future.
Contingency Planning
Build a Large Contingency into any Revised Bid
If you absolutely must proceed before completely defining the scope, add a significant contingency (e.g., 20-30% or more) to cover unexpected costs. Be prepared to justify this contingency to the customer.*
Clearly State Assumptions
In any revised bid, explicitly state all assumptions you are making about the project scope. For example, "This bid assumes that existing electrical panels have sufficient capacity for the generator connections," or "This bid assumes that gas lines are readily accessible within X feet of the generator location."
In Summary:
You're in a tough situation, but you can take steps to mitigate the risks. Contact the customer immediately, explain the issues, and propose a scope definition phase. Be prepared to walk away if necessary, and document everything. Good luck! Flag for review