How To Write a Construction Bid

Construction bidding is the process of proposing to manage a construction project. Usually, construction projects are subjected to public bidding where various construction companies submit their construction bids. The developer then, the one in need of a construction company contractor, reviews the construction bids and chooses among the general contractor that provides the best bid among all the companies that have submitted their bids.

This article will teach you how to write a construction bid, and will give you tips and recommendations to increase your chances of winning the bid.

  • Start off with researching about the developer and their needs. Ensure that you can actually provide the intricacies of the project within their specified time frame. Be aware also of their requirements for bidding, some developers require bidders to have a certain number of years in the business so as to ensure that your company is tested and reliable. Never bid when you do not qualify to their requirements because this will just waste your time and effort preparing a construction bid. Moreover, know the possible competition you will have. A greater number of competitors may require you to lessen the price of the contract so that you can win the bid.
  • Prepare an estimate cost of the project. List down the possible expenses which include the cost of raw materials, labor, equipment rentals and some miscellaneous like transportation and meal expenses.
  • Mark up the cost. Of course, to keep your company running, you will need profit. The mark up amount can vary depending on the number of competitors, the difficulty of the project, the economic conditions, the goal of the company, and so on.
  • In writing the construction bid, use your company letterhead. Included in this would be the name of your company, and contact details like address, contact numbers, fax numbers, e-mail address, and so on.
  • Write the bid. If there is a required format set by the developer, follow it so as to not disqualify you from the bid. If there is none, here are the basic requirements needed in a construction bid proposal: the title of the document (usually "Construction Bid Proposal"), the date of your bid, the exact scope and limitations of what you will work on, the list of materials and labor you will provide, and the price of the whole contract that includes the mark up price.
  • Break down the costs. It is best that you break down the cost and not present a one value for the whole project. You break down the cost according to the aspects of the construction that you will spend on, which includes labor, raw material, use of equipment, instruments, and so on. The break down price however should be marked-up as well, and the total of the break down prices should balance with the total amount of the contract fee you have presented. Include as well if your price includes sales tax and other kinds of taxes.
  • Finally, submit your bid on time and according to the developer's preferred method. Some would want the bid faxed, while some would want it submitted on hard copy.

Now that you know how to properly write a good construction bid proposal, it is hoped that you will win the bid.


Share this article!

Follow us!

Find more helpful articles: