How to Make a Construction Bid

Figure your bid carefully.

Whether you're submitting a bid for a small moonlighting job or for a large project where other contractors will be bidding against you, certain elements must be present in your documentation to protect to make your bid attractive to the client.A construction bid requires research into current building material prices and a working knowledge of the method for completing the project. In addition, you may be required to show proof of liability insurance or bonding.

Things You'll Need

• Building material prices
• Commercial liability policy numbers (optional)
• Surety bond information (optional)

Instructions

1. View the location of the upcoming project in person. Unless you're bidding on a known project, such as a storage shed for which you already have distinct plans, you may run into site peculiarities that would increase your costs. This is especially true in remodeling projects where your work must accommodate an existing structure, plumbing, wiring or ducting.

2. Separate the bid into phases. Even small jobs usually have more than one element. For example, if you're submitting a bid for remodeling an existing bathroom, the removal of the old fixtures and any tear-out would be one phase. The framing the new bathroom configuration would be the second phase, installation of plumbing, electrical and insulation comprise another phase and setting the new fixtures, installing flooring, and finishing the walls are all separate phases.

3. Estimate labor and materials for each phase. This is the critical part of making your bid. Since building prices fluctuate from week to week, get the latest prices from your local lumberyard and mentally "walk through" the construction process to determine how many hours are needed to complete each phase.

4. Add a additional charges. Unlike an estimate that can fluctuate during the construction process, a bid is set and you must complete the project for that amount of money. Since you're not in business to lose money, add 3-percent or more to the total amount, taking into consideration any "unforeseen" factors that may arise once you start the job.

5. Detail the need for "Change Orders" in your bid. Once you start the project, the owner may decide to make small changes. Make sure the owner is aware that changes are acceptable only if a "Change Order" is prepared and that the cost of the change will affect the original bid price.

6. Charge for subcontractors. 15 percent of the subcontractor's bid is acceptable when compiling your own bid. You will be ultimately responsible for the subcontractor and you will spend time scheduling his work; consider that when making your bid.

7. Provide the legal details. Use a standard construction bid form or make your own. Include the physical address of the project, list any relevant surety bonds and commercial insurance carriers and detail your warranty and a time frame in which you will complete the job. Make sure you provide a place for signatures, should your bid be accepted.

Tips & Warnings

• If material prices are fluctuating, consider putting a time frame for acceptance on your bid. If you submit an accurate bid today and the client accepts it six months later, you may lose money if building materials prices are higher.

• Don't underbid just to get the job.

Resources

• Bid forms online
• Construction bidding software.