Maintaining Business Relationships During the Bidding Process Part 2
In part one of this two-part article, we discussed how contractors can maintain business relationships on public and private construction projects. Below, we will discuss how contractors can benefit from working with contractors and subcontractors during the bidding process. While these relationships can prove beneficial, they can be equally damaging if mismanaged. For any and all of your construction-related legal needs, consult a Greensboro construction lawyer from Cotney Attorneys & Consultants.
Many construction companies form a joint venture in order to win high-profile projects. Partnering with another construction company can ensure that you don’t take on the financial risks of a project alone. However, by working with another company, you are potentially taking on responsibility for their shortcomings. Just like your company must make accurate estimates, so to must any contractor you partner with. You must also be sure that they are licensed and prequalified to bid on projects.
The most important consideration before entering a joint venture is the contract. We’ve previously covered how important the contract is for determining virtually every aspect of a project, including how disputes are resolved. Remember, by bidding on a project, you are essentially agreeing to the terms of the contract and everything in the bid documents. In order to maintain and benefit from a relationship with another construction company, you must already be thinking about what the contract will stipulate. For assistance with drafting your contract, contact a Greensboro construction attorney.
Collaborating With Subcontractors
It’s safe to assume that your company won’t be performing all of the work on a large, high-profile construction project. Numerous subcontractors are going to be at work on these projects. During the bidding process, their input will be essential for cutting costs and developing an accurate estimate. After all, your subcontractors are going to be working with you towards project completion. Bring them in on the bidding process, but always ensure that any subcontractor you work with is licensed, qualified, and capable of performing the work they claim they can do. It would be a nightmare to discover that you incorrectly estimated the scope of a project through no fault of your own.
How to Best Maintain Relationships
Construction is all about collaboration. Many construction companies have benefited immensely from working with other industry professionals. But doing so comes with great risk. Accurate estimates and well-drafted contracts are your best defense against complications that arise when collaborating with owners, government agencies, subcontractors, and other contractors. For accurate estimates, work closely with your subcontractors and fellow contractors. For well-drafted contracts, consult a Greensboro construction lawyer.
Our team of attorneys is equipped to help your company maintain business relationships and resolve disputes before they can threaten project completion. For assistance with contract drafting, mediation, and arbitration, partner with the attorneys from Cotney Attorneys & Consultants, a Greensboro construction law firm.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.