How to Estimate Construction Bids
In the construction industry, most jobs are awarded through a bid process. Contractors create estimates, or bids, for what it will cost them to do a job. Typically with construction bidding, the lowest bidder will be awarded the project. Estimating a construction bid is fairly simple, though it does require some knowledge of the building process.
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Instructions
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Gather all the required documents. To create an accurate construction bid, you'll need the most up-to-date drawings, project specifications and copies of any addenda or change bulletins that have been issued. The company requesting the bid should provide all of these documents, but if you are getting drawings from a plan room, be sure to check for addenda and bidding requirements as well.
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2
Review the drawings. Start with the floor plans, as they generally give you the best overview of the job. Next, review the title and symbols pages to learn about any general project requirements. Finally, review drawings that are applicable to your trade. For instance, if you are an electrical contractor, you'll review electrical plans, site plans, and mechanical or equipment drawings. All of these drawings may contain wiring or electrical work that is applicable to your bid.
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Read the project specifications. This is the manual that accompanies most sets of construction documents. Read the section that describes your trade, then read the preliminary sections that give general project conditions.
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Perform a material take-off. This involves counting material quantities that will be necessary to perform the job. For electrical contractors, you'll need to count receptacles, switches, junction boxes, light fixtures, and length of wires and conduits. You'll also need to include panels, transformers and any electrical connections for equipment or mechanical work.
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Get estimates from your suppliers based on the quantities you determined in Step 4. Use these estimates to determine your total material price.
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Calculate your labor costs. Decide how long it will take your employees to perform the job, then multiply this number of hours by your average wage plus any labor burden. This will help you determine your total labor costs.
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Add your material and labor costs together, then include any special fees, such as permits, wage scale, bonds, insurance premiums or other costs. Multiply your total dollar figure by an appropriate percentage to include overhead and profit. This percentage could range from a small amount like 1 or 2 percent on a very large job to 30 or 40 percent on a small job.
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Set up your bid form. Include your price, complete scope of work and the name of the project. You can send your bid in on company letterhead or create a bid form based on one of the free templates found in the Resources section of this article.
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References
Resources
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