ASA document to improve subcontractor negotiating power

To give subcontractors a leg up in contract negotiations, the American Subcontractors Association is offering a tool it promises will help “level the playing field” by conditioning bids.

In ASA’s two-page document, ASA Subcontractor Bid Proposal (2005), contractors learn how to make bid scope and price contingent on the client’s acceptance of the terms and conditions of the ASA bid proposal and of an American Institute of Architects document endorsed by ASA.

“The best estimators are already aware that job costs are premised upon a certain level of risk whether or not the bid actually states that level,” said Vincent Terraferma, ASA president. “Every contract term is a job cost, and with ASA’s Subcontractor Bid Proposal, subcontractors can offer a price that accounts for all the variables.”

The document includes these conditions:

· Price adjustment clause for significant changes in material prices
· The subcontractor reserves the right to approve customer credit.
· Attorney fees and other collection costs are paid by the client.
· The subcontractor’s schedule of values determines progress payments.
· Unless specifically stated in the subcontractor’s scope of work, the client furnishes temporary site facilities.
· The subcontractor has a right to an equitable price adjustment in case of delays, accelerations, out-of-sequence work and schedule changes beyond its reasonable control.
· Waivers of lien or bond rights do not include retainage or unbilled changes, and are limited to amounts for which the subcontractor has been paid.

The ASA bid proposal comes with an instruction sheet that informs subcontractors how to modify and attach documents to ensure their bids are properly defined. Page one provides space for writing scope and price information while page two specifies the bid conditions. The ASA Subcontractor Bid Proposal (2005) is licensed for use by current ASA members.