When it comes to maintaining and upgrading government sites and facilities, your cost estimation methods may not be up-to-date or accurate. This can lead to time delays and rising expenses, along with potentially impact mission-critical operations.
Unfortunately, the nature of the low-bid methodology in government contracting invites the possibility of cost overruns.
An example? Let’s say a military installation needs to build a new barracks. It puts out a call for proposals, and contractors submit their bids for what it would cost them to do the work.
The government, wanting to spend wisely, is often going to choose the lowest bidder. Whether by design or inadvertence, that low bid doesn’t reflect the real price of the work, and soon, the change orders start rolling in. Project costs escalate rapidly.
To safeguard against this, government leaders need a ready means to validate the accuracy of the costs as presented in each bid. Cloud-based technologies play a key role, as they can give consistent cost updates to validate the contractor’s estimate.
To learn more about how you can verify construction costs for your agency, download this playbook, “Effective Cost Estimating: 4 Tenets for Federal Construction.”