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The Best Way To Bid For A Construction Project

Most projects in construction require bids to be made by the contending companies. There is a distinct difference between when a company ...

Most projects in construction require bids to be made by the contending companies. There is a distinct difference between when a company estimates how much it will be to complete a job successfully, and when they enter the big leagues of competing with other firms for a project. Bidding is a separate skill from the construction knowledge an owner builds up along the way. The main aim of any master builder is to eliminate the possibility of not placing the winning bid.

Some of the bidding techniques you will need to learn include those in residential and commercial sectors as well as government projects.

The Construction Bidding Process

It’s always best to start with the premise that the person receiving the estimate knows nothing about the construction world. In this way, the potential customer will not be confused about any of the in-house terminologies. Your proposal will be to build a structure or oversee the construction of a structure. If you are a subcontractor pitching your services to a general contractor, it would be best if you used standard terms known to both parties.

There are two golden rules when it comes to submitting an estimate:

· Only strictly accurate cost estimates are acceptable

· The bid needs to be the lowest one out of all the competing contractors

Forming A Bid

The process of developing an acceptable bid start with precise construction plan examination. Next, you have to perform material quantity takeoffs. There are many complexities behind this process and no straightforward way of approaching it. It is at this stage that many construction companies use bidding software to simplify the process.

Although the terms are used interchangeably, bidding and an estimate should be defined differently. An estimate is when the contractor’s internal costs are calculated. This includes materials and labor. A bid is when the company presents the final price that will be charged to the client. The amount remaining between the estimated expenses and the bid amount becomes the profit.

In many instances, when the client has reviewed the estimate, they treat it as a formal bid. This usually only happens on small jobs.


Estimates should be as accurate as possible. It is the first step in the process that eventually ends in a precise bid being presented to the client. There are several levels to progress through, with each one demanding more precision in the calculations. It climbs from preliminary to ballpark figures, and ends in the correct square-footage pricing, assembly, and culminates with the final estimate.

You should never attempt a bid solicitation until you are confident in your ability to present an accurate estimate and bid. It is up to the client to furnish you with the right information for you to make a fair and precise presentation.

When you submit a bid that reflects the correct materials, assembly, and workforce hours, you are one step closer to having the winning bid. Make sure you have presented your project bid before the deadline.