What Is the First Step in Bidding Construction?
The majority of work in the construction industry is awarded to contractors through a bidding process. During bidding, contractors submit their pricing to perform the work, and contracts are awarded to the lowest bidder. For many new construction companies, it can be difficult to know how to start bidding projects and landing work. Fortunately, the process is relatively simple, and is most bids are open to almost any qualified contractor.
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Get Insured
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Virtually every construction bid requires contractors to have adequate insurance in order to bid the job. On many projects, the contractor will often need to submit a Certificate of Insurance along with his bid to verify coverage. In nearly every case, insurance coverage will be verified before a contract is awarded. Contractors should contact a commercial insurance agent or surety company to obtain liability, workman's compensation and auto coverage before pursuing a bid. Though coverage requirements are fairly standard in the industry, each bid will specify specific requirements for that particular job. Contractors should ensure their insurance meets these requirements before bidding.
Pre-Qualify
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New construction companies will often have to pre-qualify to bid on many projects. Generally, this begins by filling out AIA Form A305, produced by the American Institute of Architects. Contractors will have to provide financial and insurance data, company history, and resumes for key personnel. This form allows those issuing bids to check the contractor's history and confirm that he is equipped to perform the job. You can submit this form to local general contractor's or developers who have projects you wish to bid on, or to government agencies advertising for bidders. Some of these agencies may have additional pre-qualification requirements, but the majority are based on the AIA Form A305 and the information contained therein.
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Find Government Bid Opportunties
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To start bidding, you'll first need to find jobs you wish to bid on. One of the most consistent sources for bid leads is the government. Both state and federal agencies are frequently advertising bids on large varieties of projects. These leads are free to access, and can be found on the websites listed in the Resources section. Some of these agencies will require bidders to pre-qualify, while others are open to any interested parties. You'll often be able to view or download plans and specs directly from the website at no cost, though some agencies may prefer to send plans on disk or in paper format.
Find Private Bid Opportunities
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Local general contractors are also a good source of bid leads. You can introduce your company by visiting the contractor's estimating departments, or by submitting an information packet. Many general contractor's will require new bidders to submit insurance information along with AIA A305, and some will request a face-to-face meeting. You can also find private bid opportunities using paid bid services, or the free lead service offered by the construction BlueBook (see resources).
Preparing a Bid
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Once you've met the requirements for bidding and have found relevant leads, it's time to bid the project. Start by reviewing drawings and specifications, then use the information in these documents to calculate your cost to perform the work. Format your bid as indicated in the bidding instructions, then submit the bid on time and in the correct format. You may wish to follow-up and request feedback on your bid, or simply move on to the next opportunity.
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References
Resources
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