A Roofing Contractor’s Guide to Completing Successful Public Sector Projects

In uncertain times, public sector projects can provide an equitable source of work for low-slope commercial roofing contractors. The primary advantage of public sector projects is that they are well-promoted, bid-based projects, which eliminates the need for substantial contractor marketing and sales activities. The projects are readily available and, in most cases, the budget has already been approved and the money allocated prior to solicitation of bids. Public sector projects are typically available throughout economic downturns, as the government often uses these types of projects to ignite the economy.

Following are some guidelines that roofing contractors can implement to increase the odds of being successful on bidding and executing public sector projects.

Check the Qualifications

The primary disadvantage of public projects is that the bid process is open to all contractors, which increases the competition. Some projects may have dozens of bidding contractors, some of which may not be primarily roofing contractors. Because these projects are financed with government funds, the process is designed to allow equal opportunity, but in an attempt to keep inexperienced and unqualified contractors from project selection, several qualifications may be set in place. For instance, the project requirements may include a list of references for similar projects completed over a specified timeframe. Contractors must also have proper insurance coverage. Another way to eliminate inexperienced contractors from these public projects is by requiring long-term material manufacturer warranties. These warranties are only provided to trained and certified contractors who are experienced with specific material applications.

Best practice is to review specific project requirements to ensure that your company can meet them prior to placing a bid. On project bids with numerous and specific qualifications, an experienced administrative staff can pay big dividends by providing all of the necessary qualification documents with the bid package.

Success Begins at the Bidding Stage

Most public projects are obtained through the low-bid process, which means the contractor that submits the lowest price is awarded the project. This can also mean that the contractor who makes the biggest mistake receives the project. Public projects often require bid bonds to ensure the contractor completes the project at the bid price, no matter the circumstances. I know of one case where the contractor’s estimator failed to include material costs with the company’s bid. The contractor was still required to complete the project, which meant incurring a substantial loss. To try to reduce his loss, the contractor instructed his crew to “cut corners” in application methods. Ultimately, the quality of the work suffered, and the project turned out to be a failure for all participants.

To avoid errors in the bidding process, the contractor should entrust these projects to well-trained and experienced estimators. The estimators should have vast knowledge of the roof material and application methods for the specified systems. Estimators should also have experience with the application crew — primarily the foreman — so that they can accurately price the labor. I knew a roofing superintendent that often criticized one of his company’s estimators because he felt that the estimator always bid projects with unrealistic production rates. If the crew does not meet the estimated project schedule, then the contractor loses money. Remember the sarcastic words of Herbert Hoover in describing construction estimators: “A man can complete more work with a pencil than they can with a shovel.” Best practice is to allow the estimators to perform their due diligence before placing a bid, because pricing mistakes in this early stage will compound over the life of the project — often at the contractor’s sole expense.

The entire bid should be thoroughly reviewed prior to submittal. This review should be completed by someone other than the estimator. For this function, successful companies typically use a management group that may include other estimators, project managers, and field superintendents. The review should include labor, materials, size of project, and all items that could impact the project — such as logistics, setup areas, work schedules, number of penetrations, and existing material removal. Proper bid review can eliminate potential project losses.

Proper Execution of the Plan

Due to the highly competitive nature of public project bids, the estimated profit margin can be minimal. Errors in application methods or production rates could quickly turn a profitable project into a loss. A best practice to avoid such a loss would be to organize an on-site conference with the estimator, field superintendent, and project foreman to discuss all potential problems on the project.

Once the plan is agreed upon by all parties, it is the responsibility of the foreman to properly and effectively execute the plan. The most productive crews are the most organized ones. I have found that crews that are segmented to perform multiple tasks at one time are the most productive. For instance, in many cases roof removal, layout and attachment of insulation, and layout and attachment of membrane can be completed simultaneously if the crew is properly staffed and the work is staggered. This leaves the last half of the day for detail work — the least productive of all tasks.

Material Knowledge

Public projects are intensely competed for by material manufacturers. It is not uncommon for several different systems to be used on projects within the same public sector. Once specified, it may be difficult to submit material alternatives, so the contractor should be experienced in the specified material application. Therefore, the contractor’s crew should be experienced in proper roofing application methods of the selected roof system material.

Best practice is to make certain that the project is staffed with a crew that has applied the same materials on several similar projects. Inexperienced applicators will be less productive and can cost the contractor money.

Communication With Project Participants

“Nobody wins unless everybody wins.” I have started every pre-construction conference I conducted over the past thirty years with this phrase. Simply stated, this means that all project participants will share in a project’s success; but more importantly, all participants will be accountable in the case of a project’s failure. Just think: when was the last time a lawyer only listed one party to a lawsuit?

The communication between the contractor and the project designer (i.e., architect, engineer, consultant) is particularly important. There should be no misinterpretation between design requirements and application. Building a good working relationship with these groups may also be a good source of recommendations for further projects. Several design and construction management companies specialize in public projects, and if a contractor performs well for them, they might have opportunities to complete more projects.

Be on the Lookout for Extras

Public projects are bid at very tight profit margins. In an effort to make more money on a project, many contractors look for opportunities to complete extra work during the course of the project. Because roofs have many unforeseen conditions (e.g., deck repair, deck removal, drain conditions, wood nailer deterioration, metal displacement or deterioration, etc.) contractors are required to provide unit costs. Make certain that the unit costs provided allow for profit.

I know of contractors that review design documents prior to the bid process in an effort to identify potential project extras. This practice could make a project more profitable.

About the author: John A. D’Annunzio is President of Paragon Roofing Technology, Inc. a Construction Engineering Firm he founded in 1989. He has published over 100 articles and has written four books on building exterior issues. For more information, visit www.paragonroofingtech.com.