During step three, retention, the owners and the selected firm discuss fees, concurring on an acceptable cost for those services agreed upon during step two. If the owner and firm cannot agree on the terms of a contract, they terminate their discussions, and the owners turn to their next choice. Differences between the two selections are significant. When the design professional is chosen, owners generally are aware of their needs, but frequently do not understand a complete project scope. Construction bids are based on the design professional's detailed plans and specifications from which specific material and labor costs can be determined.
Responsible bidders have the financial capability to purchase materials and pay their crews.
In addition, they have a satisfactory record of performance, technical qualifications and equipment, and they will be able to comply with the project schedule. Jeffrey C. Evans, assistant vice president of Evans Construction Company, Springfield, and Stuart W. Broeren, president of Broeren Russo Construction, Inc., Champaign, agree that public entities should strongly consider pre-qualifying bidders. Pre-qualification requires that the prospective contractors fill out a succinct form disclosing their financial and physical capability to perform the work. Evans says one disadvantage of pre-qualification is that newer contractors have not yet developed a track record that demonstrates their capability. Another display of a contractor's responsibility is the ability to secure a bid bond and a performance bond.