Construction Bids: Mastering Construction Bidding

Construction Bids: Mastering Construction Bidding

Construction projects are won through the construction bidding process, which involves a project owner and contractors who are able to provide construction services. A construction bid is part of the process of submitting a proposal for a construction project and shows potential customers that the organization is the right contractor for the job. It lives or dies on accuracy, as the bidder must estimate a realistic cost (including a profit margin) to make the job viable. An estimate is not exactly the same thing as a bid, as it refers to the costs of materials and labor for the project. The construction bid is the final, fixed price for the entire job, and estimates need to be accurate in order to be accepted.

There are several types of project delivery and procurement methods, as well as different types of construction contracts from which to choose. The most popular methods and contracts for the construction bidding process are Design Bid Build, Design-Build, and Construction Manager at Risk. These methods define the responsibilities and risks assumed by both the project owner, construction managers and contractors when starting a construction project.