How to Bid on a Contractor's Job

Bidding on contracts is essential to the success of a contractor.

Commercial builders as well as individuals hire contractors for entire building projects or for various jobs throughout a project. Electrical work, plumbing and painting are just a few construction jobs typically performed by a contractor. Because a bidding process is used to win construction job contracts, a successful contractor must know how to effectively bid for those contracts. A bid must be high enough to sufficiently cover costs such as materials and labor, but low enough to compete with other bids.

Things You'll Need

• Construction project plans
• Bid invitation

Instructions

1. Study the project plans. It is of paramount importance that a contractor understand the size and scope of the project up for bid. A firm understanding of the project will help you execute an accurate estimate and submit a winning bid.

2. Ask for clarity on any unclear information presented in the plans. Does something seem unrealistic? Do the steps in the plan flow logically together? Clarifying vaguely presented information now will save time and money spent on a costly mistake later.

3. Prepare an estimate. Account for such costs as: time, labor (including subcontractors, if necessary), materials, overhead, profit and any other foreseeable project costs associated with the proposed contract. Using construction estimation software such a PlanSwift can help simplify this process. The Contractor's Group offers tutorials about the process of estimating for bids.

4. Use your estimate to prepare the bid. Include your company's name address and phone number or use company letterhead. Title the document "Bid Proposal." Provide the date of the bid, the project name, your proposed cost for the project and the completion time or proposed completion date.

5. Submit the bid on time. Be sure to use the requested method of delivery and follow the bid submission instructions provided on the bid invitation. Were references or insurance information requested? Submitting a timely bid with all the requested information is the first step to winning a contract.

References

• The Contractors Group: Let's Start Bidding - Construction Estimating Free Tutorial

Resources

• Planswift: Construction Takeoff and Estimating Software