8 Common Mistakes in Price Proposals

Anyone reading over a Job Order Contracting Price Proposal should walk away with a clear understanding of the work that will be completed. The Price Proposal should be a reflection of the Detailed Scope of Work, and include all tasks required to complete the project. Sometimes, items that need to be included are inadvertently left off of Price Proposals. Here are 4 items commonly left off Price Proposals that need to be included:

  1. Mobilization for rental equipment, such as pavers, rollers, cranes, etc.
  2. Minimum set up charges for tasks, such as core drilling, saw cutting, cutouts, etc.
  3. Minimum charge for small quantity work, such as roofing and asphalt repair work
  4. Removal of debris and waste from site

There are, however, some tasks the JOC Contractor has to account for that should not be included in the Price Proposal. While these items will include real expenses, they are expenses that should be taken into account by the JOC Contractor in their adjustment factor (markup). Here are 4 more items that should not be included in the JOC Price Proposal.

  1. Rental charges for backhoes, bobcats, cranes etc. (but note that mobilization for these items should be included)
  2. Chemical toilets (Porta Potties)
  3. Charges for supervision
  4. Travel time

Price Proposals must be reviewed to ensure that the appropriate tasks are included. When items are left off or extra items are added, it can cause disruptions to the project, and adversely impact the relationship with owner. Make sure the correct tasks and the accurate quantities are included in your next Price Proposal.