Proposal Phase

The proposal phase establishes the foundation for the HVAC design project by defining scope, assembling the team, and establishing contractual parameters. This phase transforms client needs into a structured approach for delivering mechanical engineering services.

Project Understanding

Initial Client Contact

The proposal process begins with understanding the client’s objectives and project requirements:

• Review Request for Proposal (RFP) or Request for Qualifications (RFQ) documents
• Identify stated requirements for HVAC systems
• Determine building type, occupancy, and programmatic needs
• Understand project delivery method (design-bid-build, design-build, CM-at-risk)
• Clarify sustainability goals (LEED, WELL, net-zero targets)
• Identify code jurisdiction and applicable standards

Site Visit and Assessment

When possible, conduct site reconnaissance to evaluate:

• Existing conditions for renovation projects
• Space availability for mechanical equipment
• Access for equipment installation and replacement
• Utility availability and capacity
• Environmental constraints
• Adjacent building impacts

Clarification Questions

Develop and submit clarifying questions to address:

• Ambiguities in the RFP
• Missing information needed for accurate scope development
• Coordination requirements with other disciplines
• Owner-furnished equipment or systems
• Phasing requirements
• Commissioning expectations

Scope Development

Defining Design Services

Establish clear boundaries for HVAC engineering services:

Basic HVAC Design Services:

• Heating system design
• Cooling system design
• Ventilation system design
• Exhaust system design
• Air distribution systems
• Hydronic piping systems
• Equipment selection and specifications
• Control system specifications (points list and sequences)
• Energy code compliance analysis
• Construction documents preparation

Additional Services (if applicable):

• Energy modeling and analysis
• Computational fluid dynamics (CFD) analysis
• Life cycle cost analysis
• Commissioning support beyond basic design review
• LEED or other certification documentation
• Cost estimating
• Value engineering studies
• Construction administration beyond standard site visits
• Record drawing preparation
• Operations and maintenance manual development

Assumptions and Clarifications

Document assumptions that define scope boundaries:

• Design basis (outdoor and indoor design conditions)
• Codes and standards to be applied
• Number of design iterations included
• Coordination meetings participation
• Drawing deliverable quantities and formats
• Submittal review turnaround times
• Site visit frequency during construction
• Client-provided information (architectural drawings, structural capacity, existing equipment data)

Exclusions

Clearly state services not included in the base scope:

• Plumbing and fire protection design (unless specifically included)
• Building automation system programming
• Testing, adjusting, and balancing services
• Commissioning authority services
• Utility coordination beyond preliminary capacity verification
• Permit expediting services
• Shop drawing preparation
• As-built drawing preparation

Fee Proposal Development

Fee Structures

Select appropriate fee structure based on project characteristics:

Lump Sum Fee:

• Fixed fee for defined scope
• Appropriate when scope is well-defined
• Includes contingency for minor scope changes
• Risk allocated to design professional

Hourly Fee (Not-to-Exceed):

• Time-based billing with upper limit
• Appropriate for renovation work with unknowns
• Requires detailed labor category breakdown
• Client approval for exceeding cap

Percentage of Construction Cost:

• Fee based on percentage of mechanical construction cost
• Common for institutional and government projects
• Typical range: 4-8% depending on complexity
• Requires construction cost basis agreement

Unit Cost Fee:

• Fee per square foot or per system
• Appropriate for repetitive building types
• Establishes clear cost basis
• Requires detailed unit definition

Cost Estimation

Develop accurate fee estimates based on:

Labor Hours Estimation:

• Break down by design phase (SD, DD, CD, CA)
• Allocate hours by labor category (principal, project manager, engineer, designer, technician)
• Include coordination meetings and reviews
• Factor in revision cycles
• Add project management overhead

Typical Hour Distribution by Phase:

Direct Costs:

• Printing and reproduction
• Travel expenses for site visits
• Specialized consultants (commissioning, testing, energy modeling)
• Software licenses for analysis
• Permit fees (if design professional is responsible)

Fee Letter Format

Structure fee proposals with clear organization:

1. Project understanding summary
2. Scope of services by phase
3. Fee breakdown by phase
4. Additional services available
5. Assumptions and clarifications
6. Exclusions
7. Payment schedule
8. Term and validity period

Qualifications Presentation

Firm Experience

Demonstrate relevant capability through:

Project Examples:

• Similar building types and sizes
• Comparable mechanical system complexity
• Relevant delivery methods
• Geographic experience in same climate zone
• Code jurisdiction familiarity

Technical Capabilities:

• In-house design software and analysis tools
• Quality control procedures
• BIM capabilities and LOD standards
• Sustainable design experience
• Specialized system expertise

Client References:

• Recent projects with contact information
• Repeat clients demonstrating satisfaction
• Projects with same project delivery method
• Similar scale and complexity

Professional Credentials

Highlight qualifications that demonstrate competency:

• Professional Engineering (PE) licenses by state
• LEED Accredited Professionals (LEED AP)
• Certified Commissioning Authority (CxA)
• ASHRAE member involvement
• Continuing education commitment
• Awards and recognition

Quality Assurance Program

Describe internal quality control procedures:

• Multi-level drawing review process
• Calculation verification protocols
• Code compliance checklists
• Coordination review procedures
• Specification review process
• Lessons learned documentation

Team Organization

Project Roles and Responsibilities

Define team structure with clear accountability:

Principal-in-Charge:

• Overall project responsibility
• Client relationship management
• Contract negotiations
• Final design approval
• Quality assurance oversight

Project Manager:

• Day-to-day project coordination
• Schedule management
• Budget tracking
• Communication with architect and owner
• Deliverable coordination
• Issue resolution

Lead Mechanical Engineer:

• Technical design leadership
• System selection and design
• Load calculations and equipment sizing
• Energy code compliance
• Specification development
• Construction administration support

Design Engineers:

• System layout and design
• Duct and pipe sizing calculations
• Equipment schedule preparation
• Detail development
• Submittal review

CADD/BIM Technicians:

• Drawing production in Revit or AutoCAD
• Model coordination with other disciplines
• Detail drafting
• Drawing quality control

Specifications Writer:

• Technical specifications preparation
• Product selection coordination
• Specification section coordination
• Addenda preparation

Subconsultants

Identify required specialty consultants:

• Commissioning Authority (for LEED or complex projects)
• Testing, Adjusting, and Balancing (TAB) contractor
• Energy modeling consultant
• CFD analysis specialist
• Acoustical consultant (for noise-sensitive applications)
• Controls contractor (for complex BAS)

Staffing Plan

Demonstrate adequate resource allocation:

• Identify personnel by name and role
• Show percentage allocation by phase
• Demonstrate availability for project duration
• Indicate backup personnel for key roles
• Show subconsultant team integration

Schedule Development

Phase Duration Estimates

Establish realistic timeframes for each design phase:

Schematic Design (SD):

• Duration: 2-4 weeks typical
• Deliverables: System concepts, preliminary equipment sizing, space requirements
• Review cycles: 1-2 iterations

Design Development (DD):

• Duration: 4-6 weeks typical
• Deliverables: Refined system design, equipment schedules, outline specifications
• Review cycles: 1-2 iterations with owner and authorities having jurisdiction (AHJ)

Construction Documents (CD):

• Duration: 8-12 weeks typical
• Deliverables: Complete drawings, specifications, calculations
• Review cycles: 50%, 90%, 100% milestones
• Permitting submittal preparation

Bidding/Negotiation:

• Duration: 2-4 weeks
• Support services: RFI responses, addenda preparation, pre-bid meetings

Construction Administration (CA):

• Duration: Matches construction schedule (6-18 months typical)
• Services: Submittal review, RFI responses, site visits, punch list review

Critical Path Activities

Identify schedule dependencies that affect HVAC design:

• Architectural programming and space planning (affects load calculations)
• Structural capacity verification (for rooftop equipment)
• Electrical service sizing coordination
• Equipment lead time verification (for long-lead items)
• Authority having jurisdiction (AHJ) review cycles
• Client approval milestones
• Commissioning plan development

Milestone Schedule

Present key deliverable dates in tabular format:

Schedule Assumptions

Document factors that affect timeline accuracy:

• Client review and approval durations
• Information receipt from other disciplines
• Concurrent review (not sequential) with other trades
• Number of review iterations per phase
• AHJ review time not included in design schedule
• Adequate client decision-making timeframes
• Availability of existing building information

Risk Assessment and Mitigation

Technical Risks

Identify potential design challenges:

• Inadequate space for equipment
• Insufficient utility capacity
• Unknown existing conditions (renovation projects)
• Aggressive energy targets with limited budget
• Phasing complexity during occupied renovation
• Fast-track schedule compressing design phases

Mitigation Strategies

Propose approaches to minimize risks:

• Early equipment space planning and coordination
• Preliminary utility coordination meetings
• Investigative site visits and equipment inspections
• Value engineering sessions to align budget with performance goals
• Detailed phasing plan development
• Increased coordination frequency for compressed schedules

Proposal Submission

Submission Requirements

Ensure compliance with RFP requirements:

• Specified number of copies (hard copy and electronic)
• Page limits or formatting requirements
• Required certifications or affidavits
• Insurance certificates
• Disadvantaged Business Enterprise (DBE) or Minority Business Enterprise (MBE) participation plans
• Submittal deadline and delivery method

Proposal Components

Organize submission for clarity and completeness:

1. Cover letter summarizing qualifications and approach
2. Project understanding and approach
3. Scope of services
4. Project team and qualifications
5. Relevant project experience
6. Schedule
7. Fee proposal (separate sealed envelope if required)
8. Required forms and certifications
9. Insurance documentation
10. Client references

Interview Preparation

If shortlisted, prepare for selection interview:

• Develop presentation materials (typically 20-30 minutes)
• Assemble interview team (key personnel only)
• Prepare responses to likely technical questions
• Anticipate questions about project approach
• Bring project examples and supporting materials
• Rehearse presentation for timing and clarity

Contract Negotiation

Standard Contract Forms

Understand common agreement structures:

• AIA B101 (Standard Form of Agreement Between Owner and Architect) with architect subconsultant agreement
• EJCDC E-500 (Agreement Between Owner and Engineer)
• ConsensusDocs 240 (Standard Agreement Between Owner and Engineer)
• Client-specific agreement forms

Key Contract Terms

Negotiate critical provisions:

Scope Changes:

• Additional services authorization process
• Change order procedures
• Fee adjustment methodology

Standard of Care:

• Professional standard of care language
• Limitation of liability provisions
• Statute of limitations

Payment Terms:

• Monthly invoicing based on percentage complete or phase completion
• Retainage (typically 0-5%)
• Payment timeline (net 30 days typical)
• Interest on late payments

Insurance Requirements:

• Professional liability limits (typically $1-2M per occurrence)
• General liability coverage
• Workers compensation
• Automobile liability

Intellectual Property:

• Ownership of instruments of service
• License for owner use
• Limitations on reuse without compensation

Post-Award Activities

Project Kickoff

Initiate project with clear communication:

• Schedule kickoff meeting with full design team
• Establish communication protocols and meeting schedules
• Confirm scope, schedule, and budget
• Identify outstanding information needs
• Review quality assurance procedures
• Establish document control procedures

Design Phase Planning

Organize work for efficient execution:

• Develop detailed design schedule with milestones
• Assign tasks to team members
• Establish coordination meeting frequency
• Set up project file structure and BIM environment
• Initiate background research and code review
• Begin preliminary load calculations

The proposal phase sets expectations and establishes the contractual framework for successful HVAC design project delivery. Thorough scope definition, realistic scheduling, and clear communication of qualifications position the project for success from inception.

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