Winning the bid is just the beginning. Effective post-award management ensures a smooth transition from bidding to execution while protecting your interests and setting up the project for success.
Post-Award Timeline
Critical First 30 Days
| Timeframe | Key Activities | |-----------|----------------| | Days 1-3 | Award notification, contract review | | Days 3-7 | Internal kickoff, subcontractor notification | | Days 7-14 | Contract negotiation/execution | | Days 14-21 | Bonds and insurance, submittals planning | | Days 21-30 | Pre-construction meeting, mobilization prep |
Immediate Actions Upon Award
- Acknowledge receipt of award notification
- Review contract carefully before signing
- Notify surety for bond issuance
- Alert insurance broker for coverage updates
- Inform subcontractors of award
Contract Execution
Contract Review Checklist
| Element | Review Points | |---------|---------------| | Scope of work | Matches bid scope | | Contract amount | Matches bid price | | Schedule | Achievable timeline | | Terms and conditions | Acceptable provisions | | Insurance requirements | Obtainable coverage | | Bond requirements | Within capacity | | Payment terms | As understood | | Change order provisions | Fair procedures |
Negotiation Opportunities
Even after award, some terms may be negotiable:
Potentially Negotiable:
- Specific clause language
- Insurance certificate details
- Schedule refinements
- Payment timing
- Retainage reduction thresholds
Typically Non-Negotiable:
- Total contract price
- Major scope elements
- Fundamental terms
Contract Execution Process
- Final review of all documents
- Obtain required signatures
- Notarization if required
- Submit executed contracts per instructions
- Obtain fully executed copies
- Distribute to project team
Bonds and Insurance
Performance and Payment Bonds
Timeline:
- Request bonds within 24 hours of award
- Submit with executed contract
- Allow 3-5 business days for issuance
Required Information:
- Contract amount
- Contract documents
- Owner/obligee information
- Project description
- Contract duration
Insurance Requirements
Typical Requirements: | Coverage Type | Minimum Limit | |---------------|---------------| | General Liability | $1M-$2M per occurrence | | Auto Liability | $1M combined single | | Workers' Comp | Statutory limits | | Umbrella | $5M-$10M+ | | Professional (if D-B) | $1M-$5M |
Certificate Requirements:
- Additional insured status
- Certificate holder information
- Project-specific coverage
- Waiver of subrogation (if required)
Internal Handoff
Bid to Operations Transfer
Information to Transfer:
- Complete estimate with backup
- Bid assumptions and clarifications
- Subcontractor quotes used
- Key decisions and rationale
- Risk items identified
- Schedule commitments
Handoff Meeting Agenda
-
Project overview (15 min)
- Scope summary
- Key features
- Owner expectations
-
Estimate review (30 min)
- Major cost items
- Assumptions made
- Pricing basis
-
Risk discussion (20 min)
- Known risks
- Contingencies included
- Mitigation strategies
-
Subcontractor coverage (15 min)
- Committed subs
- Scope assignments
- Outstanding items
-
Schedule discussion (15 min)
- Committed milestones
- Critical path
- Concerns
-
Next steps (10 min)
- Action items
- Responsibilities
- Timeline
Documentation Transfer
| Document | Purpose | |----------|---------| | Final estimate | Cost baseline | | Bid form | Contractual commitments | | Proposal | Written commitments | | Subcontractor quotes | Committed pricing | | Addenda | Contract modifications | | RFI responses | Interpretations | | Meeting minutes | Understanding of requirements |
Subcontractor Management
Subcontract Process
After Award:
- Notify successful subcontractors immediately
- Confirm scope and pricing
- Issue subcontract agreements
- Collect insurance certificates
- Obtain bonds if required
Subcontract Timeline
| Activity | Deadline | |----------|----------| | Award notification | Day 1-2 | | Scope confirmation | Day 3-5 | | Subcontract draft | Day 5-10 | | Subcontract execution | Day 10-20 | | Insurance/bonds received | Before mobilization |
Unsuccessful Subcontractors
Courtesy Communication:
- Notify promptly
- Thank for participation
- Provide feedback if requested
- Maintain relationship
Pre-Construction Meeting
Meeting Preparation
Owner Pre-Con Topics:
- Introductions
- Communication protocols
- Submittal procedures
- Payment procedures
- Safety requirements
- Site logistics
- Schedule review
Contractor Preparations
Before Meeting:
- Review all contract documents
- Prepare project team roster
- Develop preliminary schedule
- Identify initial submittals
- Prepare questions list
Bring to Meeting:
- Contract documents
- Insurance certificates
- Bond copies
- Initial schedule
- Key personnel resumes
- Contact list
Contract Administration Setup
Document Control
Establish Systems For:
- Contract document management
- Correspondence tracking
- Submittal logs
- RFI tracking
- Change order logs
- Payment applications
- Daily reports
Communication Protocols
| Communication Type | Method | Timeframe | |-------------------|--------|-----------| | RFIs | Written, formal | Per contract | | Submittals | Per specification | Schedule-driven | | Change requests | Written notice | As required | | Progress reports | Weekly/monthly | Per contract | | Payment applications | Monthly | Per schedule |
Accounting Setup
Establish:
- Job cost codes
- Budget allocation
- Billing schedule
- Cash flow projection
- Subcontractor payment tracking
Schedule Development
Initial Schedule Requirements
Contract Requirements:
- Baseline schedule submission
- Update frequency
- Format requirements
- Approval process
Schedule Development:
- Review contract milestones
- Develop detailed activities
- Establish logic relationships
- Identify critical path
- Add resource loading
Schedule Submission
| Schedule Type | When Due | |---------------|----------| | Preliminary | With contract | | Baseline | Per contract (often 30 days) | | Monthly updates | Per contract | | Recovery schedules | When required |
Risk Management Transition
Transfer Risk Awareness
From Bid Team to Project Team:
- Identified risks during bidding
- Contingency allocations
- Mitigation strategies planned
- Contract provisions addressing risks
Early Risk Actions
First 30 Days:
- Review contract risk provisions
- Confirm insurance coverage
- Establish safety program
- Plan quality control
- Identify long-lead items
- Assess subcontractor risks
Common Post-Award Challenges
Challenge: Scope Disputes
Early disagreements about what's included.
Prevention:
- Clear bid clarifications
- Thorough scope reviews
- Document contract interpretation
- Address ambiguities promptly
Challenge: Subcontractor Issues
Subs who won't honor bid pricing.
Prevention:
- Prompt notification of award
- Quick subcontract execution
- Clear scope documentation
- Relationship maintenance
Challenge: Mobilization Delays
Slow start impacts schedule.
Prevention:
- Early permit applications
- Proactive submittals
- Material pre-ordering
- Site preparation planning
Challenge: Unrealistic Expectations
Owner expectations exceed contract.
Prevention:
- Clear proposal language
- Pre-con meeting alignment
- Document all commitments
- Early communication on issues
Post-Award Checklist
Immediate (Days 1-7)
- [ ] Award notification acknowledged
- [ ] Contract reviewed
- [ ] Surety notified
- [ ] Insurance broker notified
- [ ] Subcontractors notified
- [ ] Internal kickoff scheduled
Near-Term (Days 7-21)
- [ ] Contract executed
- [ ] Bonds issued
- [ ] Insurance certificates obtained
- [ ] Subcontracts drafted
- [ ] Handoff meeting completed
- [ ] Pre-con meeting scheduled
Pre-Mobilization (Days 21-30+)
- [ ] All subcontracts executed
- [ ] Baseline schedule submitted
- [ ] Initial submittals prepared
- [ ] Site logistics planned
- [ ] Safety program ready
- [ ] Team mobilized
Related Articles
- Understanding Change Orders in Public Works
- Construction Contract Management Best Practices
- Subcontractor Management for Government Bids
Frequently Asked Questions
How quickly must I sign the contract after award? Typically 10-14 days, but check award letter for specific deadline. Failure to execute may forfeit bid security.
Can I still negotiate contract terms after award? Limited negotiation is sometimes possible on specific terms, but major elements like price are typically fixed.
What if a subcontractor backs out after award? Move quickly to the next qualified bidder or identify alternatives. You're still bound to your contract price.
When should the project team take over from the bid team? Transition should begin immediately upon award, with complete handoff within 2-3 weeks.
How long should bid team members remain available? Key estimators should be available for questions throughout the early construction phase, typically 60-90 days.
