Before award
Six Questions Before You Award
Multifamily GMPs are hard to compare because the differences are structural rather than numerical.
Bring the site, the unit count and the drawings at whatever stage. You get a range, the drivers, and an honest read on the pro forma.
The six
Ask these of every bidder, including us. The answers vary more than the numbers do.
- Where is the contingency, and can I see it as a line?
- What do you self-perform, and what is subcontracted?
- Who is the project manager and superintendent, and what else are they on?
- Show me a draw package from a current job.
- What is your assumption on permitting duration, and where did it come from?
- What happens on escalation between now and buyout?
The one that reveals most
Ask to see a real draw package from a live job. A contractor who runs clean draws will produce one immediately and it will be unremarkable. One who does not will explain why they cannot.
That single document tells you more about how the next eighteen months will go than the entire proposal does, because it is evidence rather than assertion.
Comparing numbers
Before comparing GMPs, confirm the contingency is in the same place, the allowances cover the same items, and the general conditions are itemized the same way. They very often are not, and the lowest number is frequently the one with the most buried.
FAQ
Common questions
- Why do GMPs vary so much?
- Usually contingency placement, allowance scope and general conditions structure rather than trade pricing.
- Should I take the lowest?
- Only after normalizing all three for contingency, allowances and general conditions.
- Does self-performing matter?
- On Florida below-grade work, considerably. It is the difference between controlling the biggest risk and subcontracting it.
- What if they will not show a draw package?
- That is your answer.
Next step
Find out what is actually wrong with it.
An inspection, photographs of what we found, and a written scope. If the honest answer is that it can wait another season, that is the answer you will get.