How to Bid a Construction Job

Hard hat

If you own a construction business, you know how competitive bidding for a construction job can be. In the end, though, the homeowner will consider factors in addition to the lowest bid in choosing a contractor. Good references, a guarantee of long the work will take and an impeccable work ethic all make a difference. Give a thorough, honest and informed bid and you can expect greater returns.

Difficulty:

Moderate

Instructions

Things You'll Need

• House plans
• Bidding software

1. Meet with the homeowner. Speak with her about what work she wants done, what materials she prefers, and how quickly she wants the work done. If it is to be a new home, obtain house plans so you can bid accurately. Otherwise, measure the area that is to be renovated.

2. Visit local building companies and suppliers to determine how much the materials will cost. You can send the job out for different bids on components like lumber, hardware and finishing materials.

3. Consider how long the job should take. Give yourself an hourly wage or daily wage to finish the job. About $20 an hour in labor on top of the material is fair for an easy construction job, increasing as the job becomes more complicated or requires more work.

4. Compile your approved numbers for material and a labor estimate for the homeowner to see. If you can, use bidding software so the homeowner can see exactly what services you'll be performing and the actual prices for the materials.

5. Present the bid to the homeowner, along with a guarantee that you will hold the price for 30 days while he makes his decision whether to hire you for the construction job. If the homeowner takes longer than that, you'll need to rework the bid to factor in new materials prices that will have changed.

References

• Bidding Basics