Tips for a Successful Construction Bid

Most building contractors begin work on a construction project through a process known as construction bidding, which involves submitting a tender or proposal to a potential client to undertake or manage a particular project.

As this is the method by which they procure work, it is critically important that contractors get the process right. Unfortunately, many contractors are left to learn this on the job through a process of trial and error, without receiving any formal training. Without knowing how to put together a successful construction bid many businesses end up making costly mistakes and fail to secure enough work.

This article will explain how the construction bidding process works, giving you a clearer understanding of this highly competitive and often complex area helping you to develop your proposals and increase your chances of securing winning bids. The following steps are common to the construction bidding process:

Bid Solicitation

Here the client or project owner will announce the project and invite bids from interested parties by sending out a formal request through an Invitation for Bid (IFB), a Request for Proposal (RFP) or a request to tender (RTT). The American Institute of Architects (AIA) have created a standard template RFP document.

In addition, the client will also include documents which detail the scope of the work involved such as specific requirements about materials, tools or systems, project deadlines and milestones as well as questions they would like bidders to answer and may also send a Request for Qualifications (RFQ).

An RFQ is typically used in the government sector and requires bidders to meet certain qualification criteria to ascertain if they are suitable for the project. In this way they act as a filter to eliminate candidates, preventing them from continuing with the process. It’s important to review the solicitation bid package and each document within it properly.

Bid Submission

Make sure you submit your bid within the specified timeframe. Include all required information such as relevant structural drawings, overheads, work undertaken on similar projects and a cost estimation for labor, equipment, building materials. Ensure your cost estimate is accurate and takes into account the needs of your business rather than simply undercutting your competitors.

It is also highly recommended that you attend any pre-bid meetings and ask questions on any parts of the project you need clarification on. Construction agencies also work to bring clients and skilled workers together ensuring each job is completed properly. Sitepro Solutions' jobs focus on such areas.

Bid Selection

Within the government sector, cost is usually a deciding factor and the lowest bidder often wins the project. However, in the private sector, clients can take into account other factors when determining the winning bid such as how fast the work can be completed and any relevant experience.

Contract Formation

At this stage, the winning bid will have been decided and the terms of the project will be finalized. Before you sign the contract you will get the chance to negotiate any remaining points relating to delivery, pricing,  limitation of liability and other contractual terms.

By following the guidance in this article you will be able to represent your business in a favorable light, showcasing your expertise and value that you can bring to each project.