Contractors often have a hard time developing winning bids because they fail to include essential items in their proposals. This is why more than 83% of the total construction bids end up in the trash!
You certainly have the resources, plans, skills, and expertise—but where’s the work? You must understand each word you’re writing in the proposal to show your interest to the project owner. Therefore, we’re here to help you assess and examine different aspects of a bidding proposal and hit the mark you might’ve missed!
Read on to learn the six elements you must add to your winning bid proposal.
1. Party Specifications
Bidding on a construction project can be stressful. It takes time, effort, and energy to go through all the project documents and calculate a perfectly balanced price between costs and profits.
The first step to developing a winning bid is highlighting the basics. Add information such as contact names, addresses, numbers, and location of your party. You wouldn’t believe how many proposals get rejected just because they lack this preliminary information.
2. Project Scope
Now comes the most important part of your bid proposal: the project scope.
In the project scope section, you’ll extensively describe your offered services. This is where you need to stand out. The competition in the construction industry is stiff—making value addition a crucial aspect of your proposal.
Include all the specifications of your services, such as:
- Which material do you use?
- Are you using something new and innovative?
- Your plans: construction drawings and calculations
- Work quality assurance
- Tests, licenses, and certifications
- Annual inspection and guarantees
- Insurance information
3. Cost and Payment Terms
Also known as the administrative breakout, this section includes the identification of your cost plans and payment terms. Don’t forget to incorporate the exceeding costs within your area. The more specific the terms and costs are, the easier it is for the project owner to decide in your favor.
4. Work Schedule
This section identifies the start and end date of the project. Don’t forget to notify plan approvals, notice dates, easements, and permit information. Also, make a note of force majeure that might hinder the project development phase.
5. Relevant Authorities
This section describes the roles of the individuals involved in the project management, for example, municipalities and partners. Outlining this information in writing helps you underline your liability as a subcontractor in case of a delay or under-performance.
Lastly, you must identify the items you’re not responsible for. This might include site work, permit fees, warranty beyond specified terms, and any other work that’s beyond your ties. This section helps the project owner separate your services from others.
Highly Recommended Best Practices for Your Construction Bid
The expert estimators at Remote Estimation have shared their best practices for creating winning bids:
- Use simplified, easy terms. Don’t overlook the importance of standard jargon used in a construction proposal.
- Add appendices to your proposal. It’ll help the project owner breakdown the necessary information.
- Conduct comprehensive research about the location, project, and owners.
- Be accurate with numbers.
- Consult past project contractors and identify the factors that made their plans successful.
- Comply with all the local and federal level guidelines and industry regulations.
Hire the Best Residential and Commercial Project Estimation Services
At Remote Estimation, our quantity surveyors and estimators factor in current market trends and all construction standards to provide accurate bids that allow construction projects to move forward swiftly and successfully.