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Traditional Bid Process Vs. Direct Purchase

Hannah Duncan Leave a Comment

The traditional public bid process has been around for a long time but that doesn’t mean it’s the most efficient process anymore. There are aspects of the bid process that take time, public money, and resources that don’t always equate to the best value in the end for the building or project.

The typical public bid process first requires bidding the design work and then hiring the architect who is the lowest bidder. Then, there is a bid for the construction of the project and a contractor is hired, who is typically the lowest bidder.

The Issues with Bidding a Building Design and Its Construction

The issues with bidding the design and construction are many. But, principally getting an architect and contractor who can perform and stay within budget is the major challenge.

It costs money and time for the public to bid the design and construction. When there’s already a set budget for the project, this process eats away at dollars for the final product. Public entities have a tight budget to start off with and this process takes away from the budget to purchase and build the building.

Hiring an architect at the lowest bid comes with its own set of risks. Architects don’t always have the same knowledge or understanding of true construction values, which can lead to surprising bids from contractors and designs that don’t fit within the established budget.

Discrepancies between the architect and the contractor building the project can also add costs due to changes, or mistakes in the design or feasibility. Hiring the lowest contractor means the decision is based on price, not on the quality of the project or the experience of the contractor. This can take away from the overall value of the project that the public is receiving.

Without a clear specification in the bid contract, the contractor has the flexibility to choose the materials. The public entity is then at the mercy of their best judgement when naturally a contractor may feel inclined to cut corners on materials to gain more profit.

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The Benefits of Direct Purchase with Cooperatives

At Romtec we have designed, supplied and constructed parks and recreation buildings for over 30 years. We have the experience and the services to help make your next project and its construction a simple process and an overall success.

There are lots of ways to purchase projects or construct buildings as a public entity. Romtec is a part of many Purchasing Cooperatives across the country which offer direct purchasing options. There are also direct contracts with States or Federal Governments or the option of the Design-Build process to provide the public with the best value, based on price and qualifications.

These alternatives result in the public paying less and getting more. Romtec works with entities through Contracts, Cooperatives, and the Design-Build process to provide our wide-range of capabilities that can benefit you in your next project. In our next blog “How to Buy Better” we will detail how to utilize these options. Reach out to Romtec sales to learn more about how a Purchasing Cooperative or other Direct Purchase alternative can replace the traditional bid/build process at

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