Digital Dryshack#98: Bid Day with Sage

Our work as consultants requires travel to such interesting places as Arnpior, Ontario Canada, population 8,500. Arnprior is a picturesque, and architecturally lovely small town at the confluence of the Ottawa and Madawasca Rivers in Eastern Ontario. If you ever find yourself needing accommodation in Arnpirior, it would be a mistake not to check availability at Ellen’s Kirkman House B&B. It’s a 140-year old B&B, which was at one time in its colorful history the town’s Convent. Our project was with  M Sullivan & Son, a 102-year old construction company whom we’ve worked with for the past year, building a new and robust Sage (Timberline) Estimating system. Our primary mission this trip was to provide training and support for closing their first bid in Timberline, rather than in Excel as they have for many years.

The first step is Database setup. In my opinion, effectively closing a bid in Timberline utilizes two custom WBS :

• Bid Status with 3 values:
  • 1-Open
  • 2-Pending
  • 3-Closed
• Bid Package: multiple, as detailed as you expect your Subcontractor and Supplier quotes to be  
  • CSI-indexed
  • Examples:
    • 03.20.00 Concrete reinforcing
    • 03.30.00 Concrete supply
    • 03-35.00 Concrete place & finish

3 database setup steps:

1. We setup the WBS codes in the database
2. Entered the 3 Bid Status values
3. Imported ~150 Bid Package values into the Bid Package WBS table

3 Estimate setup steps:

1. Copy the original estimate to a Bid Day copy and use it to close the bid
2. Create a Spreadsheet Sequence for Bid Package, then select it
   1. Assign all work to a Bid Package, keeping the work your company self-performs separate from those for which you expect Sub coverage
   2. Bid Status & Bid Package. Highlight estimate items and use the Move / Copy command or Drag & Drop into the Bid Package line with the mouse
3. Spreadsheet Sequence for Bid Status + Bid Package, then select it  
   1. Assign all the Bid Packages to one of the 3 Bid Status codes:
   2. All items for which you’re expecting Sub numbers to Open
   3. All self-perfomed work to Closed or Pending
4. Setup simplified Bid Day Screen Layouts for the 2 new Spreadsheet Sequences above. Keep it simple, you don’t need many more numbers columns than Sub Amount, Total Amount and the Notes field (for Sub Name)

Bid Day:

1. Use the simplified Layouts and start entering the Sub prices, AT THE BID PACKAGE LEVEL, (not the Item Detail level). This brings up the Adjust Column screen. Simply OK to Spread the number displayed,.
2. Enter the Sub name in the Notes column
3. Continue until ~15 minutes before closing
4. Make the Totals Page visible in the lower section of the screen, (or another monitor)
5. Make any strategic Estimate Adjustments in an Addon (usually the last Addon just above the Estimate Total)
6. Make any final Estimate Adjustments by simply changing the Estimate Total. (this makes the Variance appear in red below the Total)
7. Submit the Bid.
8. AFTER CLOSING, Spread the Variance to reconcile to the desired Estimate Total

Naturally there are numerous possible variations, but the overall method is solid and promotes consistency project to project. Plus it eliminates any possibility of math errors in Excel, while also maintaining all the correct numbers to send to the JobCost budget without manual re-entry. The beauty of this system is that is reduces the possibility of errors to one factor only, erroneous numeric input. I’ll argue that’s as good as we’ll ever do at this stage of construction technology.

Brent closed the bid without a hiccup, thanks to the support of the estimating staff analyzing the different spec quotes as they came in. The new war room at MS+S proved invaluable, with two 60-inch screens, allowing multiple estimators to keep their eyes on the ball. The debrief with management and staff was positive, affirming that future bids will be closed in Timberline. We discussed a few minor technical changes only, and the process will continue to evolve. Sometimes success itself causes great companies to fear improvements because change is required. It’s refreshing to work with a 100+ year old company that’s willing to learn new methods and improve its procedures, despite its long-standing successful methods and traditions.

We welcome your comments and your own observations and experience in closing bids, and contact us if you’d like a list of suggested Bid Packages.  (future link to be added)