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how does the construction bidding process work

Understanding the Construction Bidding Process: A Step-by-Step Guide

What Is Construction Bidding Process?

No general contractor wants to lose profits when handing over their properties to subcontractors—and this is where construction bidding comes into play.

How Does the Construction Bidding Process Work?


Construction bidding is quite challenging and detailed. It’s the process of providing potential customers with a proposal to invest and manage in a building structure. Subcontractors also use the construction bidding method to pitch their services.

In short, several competing firms bid against each other to work out the perfect price for construction projects.

But when it comes to construction bidding, many people aren’t aware of the whole procedure. Let’s delve deeper to understand all the steps involved in a construction bidding process.

According to the Association of General Contractors;

“The lifeblood of a contractor is accurate bidding. Without very detailed estimates, a contractor cannot compete, cannot complete a project, and cannot stay in business.”

Only one in seven general contractors manage to win a bid.That’s why the construction industry has a profit margin of less than one percent.


bidding process for construction projects

The Step-by-Step Construction Bidding Process


The steps involved in a construction bidding process are described below:


1. Registering Interest


Studying the terms and conditions of a bid document is imperative. It helps you register with a good purchase agency and get you high bidding contractors on your project. In this step, project owners must also assemble all their documents, project specifications, drawings, and related documents.


2. Attending Briefing Sessions


After registering with a purchasing agency, the next step is to attend briefing sessions where general contractors are offered a chance to ask questions, clear confusions, and often meet subcontractors. This step plays an important role in understanding the bidding process’s demands and quality criteria and helps project owners choose the right, most profitable bid in the end.


3. Developing a Bid Response Strategy


When designing a bid response strategy, here are a few questions you must answer:

  • What’s the total cost of preparing a bid?
  • What information do I need?
  • What resources are requires to fulfill a contract?
  • Who’s my competition, and what are their chances of winning?
  • Who will manage the bid projects and how?

4. Bid Selection


This step is quite self-explanatory. The project owner chooses the best bid by studying and scrutinizing bid plans. They decide a bid after reviewing government guidelines compliance and comparing the offers against each other.


5. Contract Formation


After bid selection, the project owner drives the construction bidding process into the final phase. They draft a contract that includes payment terms, legalities, and construction protocols related to the project. After that, the project is finally handed over to the bidder for construction commencement as per the agreement.

Hire a Leading Construction Estimation Company Today!


If you’re looking for a construction estimation firm that provides quantity takeoffs and estimation services to general contractors and sub-contractors, get in touch with Remote Estimation.

Our professional quantity surveyors and estimators employ the latest software solutions to provide accurate and precise estimates. From concrete estimating services to drywall, lumber, flooring, and electrical estimation services, we offer it all!

Reach out to us to learn more about our commercialand residential estimation services.


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