Why the Alabama Bid Law Matters

At HPM, we’re accustomed to quizzical looks from clients when we explain the difference in services, advantages and price we provide as opposed to lifting a hammer to actually build a facility — like that of a general contractor.

In fact, it almost sounds too good to be true. (Watch the video below to see how true it is.)

We hear, “Do you mean that your professional advice and management of my project(s) are not a contingent percentage of the price?”

That’s right. Our services are billed to clients on a mutually agreed-upon, lump-sum amount or at an hourly or monthly rate.

Clients say, “You manage my project(s) with design and construction experience and expertise, but you don’t actually design or build my facility?”

Correct. In fact, that would be a conflict of interest if we did.

That’s how and why we got started as a program management firm — separate and apart from our founding company, Hoar Construction.  HPM operates as its own business entity — a limited liability company (LLC) — in order to provide clients with design and construction advice and management from the owner’s perspective — without a conflict of interest or selfish bias.

But it’s not only our business practice or simply a good policy, it’s the law in Alabama — where we got our start:

Alabama Code Title 39. Public Works. § 39-2-2

“(d) Excluded from the operation of this title shall be contracts with persons who shall perform only architectural, engineering, construction management, program management or project management services in support of the public works and who shall not engage in actual construction, repair, renovation, or maintenance of the public works with their own forces, by contract, subcontract, purchase order, lease, or otherwise.”

So, before you engage a professional to oversee your capital building program or project, make sure that (1) the firm is experienced in representing you and your interests as the owner or stakeholders; and (2) also holds no other interests or contracts associated with the program or project, too.