How to Bid Construction Jobs

Learning how to bid construction jobs is an important skill that can drastically transform your small business into a multi-million-dollar venture.

However, a construction bid may be confusing if you lack a complete understanding of the tendering process or how to bid construction jobs.

To help you out, we’ve compiled a step-by-step guideline to help you bid construction jobs easily, whether as a contractor or subcontractor.  

How do you bid on construction jobs?

Here are ten key steps for bidding on construction jobs:

1. Client interaction and site tour

Launch the bidding process by reaching out to your potential client.

Establish clear communication to grasp their vision and project details. Organize a site tour to assess the project, carefully evaluating both the site and project plans.

This comprehensive approach ensures a clear understanding of the client’s vision and project requirements, laying the groundwork for a well-informed bid proposal.

2. Material procurement

Create a comprehensive list of required materials, initiating communication with suppliers to gather pricing and confirm availability.

Calculate the total cost of materials, factoring in transportation expenses.

Additionally, ensure to allocate an allowance for potential damages or losses during the construction process. This ensures accurate budgeting and comprehensive preparation for the bidding process.

3. Labor cost estimation

When estimating labor costs, factor in wages, workers’ compensation, and benefits. Add a markup to contribute to your overall gross profit for the project, ensuring that the final figure remains competitive in the bidding process.

4. Subcontracting

Invite bids for any work that needs subcontracting. Apply a slight markup to your subcontract labor costs to cover administrative expenses.

Ensure subcontractors have adequate insurance and ample operating capital for financial stability and to minimize project liabilities.

5. Project scheduling

Create a project schedule, taking into account material and labor availability, including subcontract labor.

Factor in time for adverse weather conditions, potential backorders, delays due to the customer, and last-minute subcontractor scheduling issues.

6. Detailed bid preparation

When preparing your bid, ensure meticulous detailing to offer your prospective client a clear understanding of their investment.

RELATED: 9 Top Bid Sites for Construction Projects

Type and bind your proposal professionally, enhancing its overall presentation for a polished and impressive look.

7. Bid submission

When submitting your bid to the client, include a list of referrals and high-quality images showcasing your past work.

Provide evidence of your business’s financial stability and ensure proof of adequate insurance coverage for yourself and your workers.

8. Project terms and conditions

Give your prospective customer an estimated completion date. Inform the client about your approach to handling changes in the original scope of the project.

Specify that change orders will be documented in writing, and the cost of the change will be detailed and approved by the customer before you proceed.

9. Client discussion

Request the prospective customer’s guidance on the optimal time for a job discussion. If the client expresses interest in hiring another contractor, inquire whether you may compare the bids.

10. Budget-friendly options

If the customer has budget constraints, extend an offer to collaborate on cost.

You can suggest alternative building materials or design features that will lower building costs without compromising on quality.

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