What’s an Add-Alt?

You’re done making the documents that you’ll use to get bids. But what will happen if all the bids you get are over budget?

Maybe you got estimates along the way. Maybe you could drum up more funding if need be. Maybe you have strict procurement rules.

In any case, some options:

1. Black Belt Cost Control (but you would have to have already done it)

2. Prayer (sometimes does work, statistically)

3. Add-Alts

An additive alternate, or “add-alt”, is a procurement-department-approved bidding strategy that maximizes what you get for your money, while avoiding all bids being over budget.

Here’s how:

Describe the minimum “base” elements of your project. Get a price for it from everyone. Make sure it will fall within your budget. Be conservative.

The rest of the project becomes one or more “add-alts”. Instruct bidders to provide each as separate prices you trigger if you want.

If your base is all you can afford, OK. But if some bidders can provide some add-alts still within budget, you get more for your money.

Here’s the thing:
Add-alts make bidding easier and less risky.

Prayer only works sometimes.

Warmly,
Jonathan

P.S. I’ll be at MAAM Building Museums this week, Weds-Friday, and speaking on two panels on Friday. Hit REPLY if you’ll be there and you’d like to connect.