The low bid process of procurement was once the rule of thumb when looking at Alberta pipeline construction bids. However, as more pipeline companies entered the market, so too did a few companies looking to get jobs at any cost. Unfortunately, these companies proved unable to meet a deadline or stay within a budget. The factors in this inability ranged from the delicately phrased “material misstatements of fact” to simple inexperience in the realities of running a job site. Situations such as these have led to the adoption of “best value procurement.”
Governments and large businesses are now less interested in how little it will cost, but instead how much value projects will produce. The best value business model as outlined Arizona State University is of particular concern to small and medium-sized companies who need this advantage in pipeline construction.
Let’s look at the differences.
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Low Bid Process |
Best Value Bid Process |
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Looks at the costs of materials. |
Looks at the quality of materials. |
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Does not look at bidder’s expertise or experience. |
Takes into account bidder’s expertise and experience. |
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Past performance may be an issue but may or may not disqualify the awarding of contracts. |
Past performance is a significant criterion, and poor performance in the past will disqualify. |
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Takes statements of ability to perform at face value, with minimal checking on background, assets, equipment, and personnel. |
Looks into company factors that indicate an ability to perform the work being bid. These factors include equipment, assets, and capital on hand. |
Above all, it is essential to consider the track record of the pipeline construction company presenting the bid. Experience, portfolio, references, and visits to active job sites give a far more accurate picture than pieces of paper on the desk. When you need an Alberta company with experience, accuracy, and integrity, look for Platinum Pipefitting to bid on your project.
