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Unformatted text preview: 5.32 Bid Depositories 105 private projects, there may occasionally be listed in the instructions to bidders the names of subcontractors acceptable to the owner for major divisions of the work, such as electrical, plumbing, heating and air-conditioning, and elevators. In such cases, the general contractor can subcontract these items of work only to one of those subcontractors listed. At this point, it suffices to say that the low subbid is not necessarily the best subbid. The general contrac- tor must consider, in addition to immediate cost, the subcontractor's integrity, organization, financial strength, equipment, and reputation for getting the job done. Many general contractors have a tendency to award a majority of their subcontracts to the same preferred companies. However, this can be disadvantageous to these general con- tractors, in that competing subcontractors may not continue to submit their most competitive prices to such firms. It is to the advantage of a prime contractor to establish a good work- ing relationship with several subcontractors associated with each work specialty. When awarding subcontract work, the general contractor must never lose sight of the fact that a subcontractor is reliable only to the extent of its financial capability. The financial soundness of a subcontractor must always be a top criterion in awarding subcontracting work. 5.31 ASSIGNED SUBCONTRACTS The usual procedure, previously described, of subcontract bids being submitted to the bidding prime contractors for inclusion in their bids, is not always followed in certain states in the bidding of some state-financed projects. In these states, separate bids are requested by the state for general construction and for designated specialty areas such as electrical; plumbing; heating, ventilating, and air-conditioning; and others. The general construction bids cover all work on the project not covered by the designated specialty areas. Bids for work in all of the specified areas are submitted directly to the state agency involved. After the bidding deadline has passed, the agency identifies the low general construc- tion bidder and the low bidder for each of the specialty areas named in the bidding doc- uments. The state then awards contracts to the low bidders, with the successful general construction bidder now being identified as the project general contractor. The state then assigns its contracts with the specialty contractors to the identified general contractor. From that point on, the specialty contractors are regarded as being subcontractors to the general contractor and the project is constructed according to the usual rules. An extension of this procedure, called prepurchasing, has emerged on private projects....
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- Fall '08
- General contractor, bid, contractor, prime contractors