Best-Value Bids at Risk in PA
November 3rd, 2005 by HalThe tide has turned in contracting. No longer is low price the only basis for selecting contractors. An approach known as best-value is being widely adopted in the private and public sectors. The approach uses predefined assessment criteria. Price is often weighted heavily in the determination of best-value.
Pennsylvania is one of the recent states to legalize best-value as the basis for selecting contractors for state work. ENR reports in the October 24, 2005 issue that the Associated Builders and Contractors (ABC) has sued the state to overturn the new law. ABC contends,
"…the process is secretive, invites favoritism, and is a poor substitute for hiring contractors based only on competitive bids."
The ABC goes on to claim the contract awards are "secretive and subjective," according to Hank Butler, ABC Director of Government Affairs.
What a way to spend ABC member dues! One reader1 agrees writing a letter to the editor in this week's issue,
"If ABC spent more time and money trying to make their members better contractors, then maybe they wouldn't feel so threatened when their only bastion of safety — the low bid — is challenged by owners who want more value for their construction dollar."
Not only is the ABC behind the times, but they show a distinct indifference to the needs of their prospective clients. I predict ABC will lose this lawsuit along with the goodwill they already squandered.
By the way Hank, of course best-value has subjectivity in the process. Value is an assessment. Value is whatever the person says it is. Those contractors who take the time to listen to their prospects' concerns will be positioned to make best-value proposals. Maybe that is the real issue of the lawsuit: perhaps the ABC knows that its membership doesn't listen. If that is the case, then the only avenue is to sue your prospects.
- Steven B. Chesley, Executive Manager, Quad Cities Chapter, National Electrical Contractors Assoc., Davenport, Iowa. [ ⇑ back ]
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