How Do You Get Those Big City Contracts?
Part II

Before we get started, I have added some new links on city page auctions with addresses and phone numbers.  You can get some great bargains!

In last months issue we spoke about getting your financial statement in order, and your licenses and insurance. 

Now that you have them in place, let's bid on a job together. 

The steps I am about to show you may save you and your business, and a lot of heartaches.  Take it from me,  I have been doing work for the city for the last 20 years. 

We reviewed the city record and found a small job for
$50,000.  We call the construction manager or agency, to find out the availability of the bid package, and the price.

We arranged to have the bid package picked up.   We reviewed the bid package and we notified the construction manager and missions.    Then we reviewed the specifications and bid on the job. We provided the bid bond as required per contract, and the date and time that the bid will be in the bid package.

Within a short period of time you will receive an award letter stating you are the lowest bidder.   It is now time to set up a folder for the following: submittals, permits, minutes of any meetings, correspondence,change of orders, insurance, and requisitions.

Some Definitions and Terms

Submittals:  
Are the items that you are going to install.   These items must be approved and stamp approved by the agency that you are doing work for.   If it is not,  you will not get paid a dime for anything!

Requisition:  
Payment breakdown that must be approved before the start of a job.

E.E.O
(Equal Opportunity): Some agencies require a vended or an E.E.O. before starting the job.

Permits: 
Make sure your permits and insurance's are taken out before the start of a job.   

Recieving payment:
Known to those in the trades as a pencil copy.  Once you and the agency agree upon a percentage,  you can prepare your requisition based upon that percentage,  and submit your requisition with your payroll records.   Please note: employees must be paid the scale that is in the bid package.  You must find out which inspector is responsible for your requisition and your "turn around" time for payment.

Prompt Payment:
The City of New York is required to pay you within thirty day from the inspectors sign off date.   If they do not,   they must pay you interest .

Substantial Completion:
On all requisitions,  5% - 10% percent is held on each requisition,  until you reach substantial completion from that time.

Final Punch List:
When approved, you can submit for a final payment .

Please note:   During the process of your job,  you must pay close attention to any delays that other people are causing you.   For instance,  you can not gain access to the site, or other tradesmen are causing a delay to you, or any other of the items that may cause you a delay.  I know some agencies that like to play games, and back charge you to save their agency money.  Don't be afraid to write letters to cover your back!   We all know how to be contractors,  but now we have to play lawyers too.  Do the job according to specifications and plans, and cover your back, and you will never have a problem. 

I will be setting up a section in the information exchange for all of the horror stories. (from the City Job)

Upcoming issues to follow, so bookmark this site and check back  soon!