The main principles of construction bidding

To create a winning proposal for a construction project, knowledge, skills, and experience are essential. Contractors need to set competitive prices. After all, an incorrect or underestimated rate can lead to a real lack of profit for the project. Therefore, it is worth considering ways to improve the results of rates and, for a start, familiarize yourself directly with the concept of construction tenders.

What is construction bidding?

So, how does bidding work in construction? A construction tender is a tender followed by the conclusion of a contract for the performance of certain works related to construction. Participation in tenders is one of the best ways for a customer to receive quality services at a favorable price, and it allows a contractor to receive a large order and good prospects for the future.

Having dealt with what is bidding in construction, let's move on to a more detailed consideration of what is the bidding process in construction.

Construction bidding

The main principles of tendering

Knowing what tendering means, it is important to understand that regardless of the size of the project, it is important to follow the principles of managing the tendering process.

It takes time to trade

If you already understand what a tendering process is, then you should appreciate the fact that it can take several hours to apply, and suppliers need at least a week to prepare applications.

Detailed plans are needed for a robust bidding process

Having studied the question of what tendering procedure is, it is important to understand that the preparation of tender documents is very important. After all, for the entire time of work, the team will work with the documentation of architects, so all drawings must be clear and correct.

Choosing a bid with a low price does not always result in quality

In concluding the consideration of the principles, it is important to remember that when choosing partners, one should not rely only on low prices. After all, all participants in the process must understand what is tendering in construction and how important it is to choose a reliable partner. The reason for the low price should be investigated and the effectiveness of such a project evaluated according to the initial planning.

The main principles of tendering

10 points to consider when bidding process in construction

The bidding process in construction includes many important nuances that, if executed correctly, lead to an excellent result. Knowing the types of bidding in construction and the basic principles of bidding, you must also follow the step-by-step discussed below to get a project that will be comfortable and risk-free for you.

  1. Choose good projects. You don't have to take on every project that comes your way. Even if you spent time on the evaluation, but still realized that the project is not suitable for your company, move on to another evaluation so as not to waste even more time or even the company's reputation as a result.
  2. View the property and participate in the preliminary meeting. This is especially important if a renovation is planned. So you can assess the risks and understand the availability of the project for your implementation. View drawings and all available information about the object. Ignoring this point can damage your profitability.
  3. Refine information if necessary. If you have questions about the project, please clarify them before applying. This will help you submit a competitive and accurate offer.
  4. Make accurate calculations. The estimator needs to quantify the work on the drawings. Review the plan and specifications. Check available parts and materials. After all, a detailed check is the best way.
  5. Use modern software to avoid math mistakes. In the modern world, there are many opportunities to automate the calculation process. Estimating software will give you more accurate results than Excel, for example. But even despite the use of modern software, it is still important to check everything personally again after the calculations. Especially if the calculations are carried out already on the day of trading, then the rush and a simple human factor is the reason for getting errors that can affect your reputation or give out losses in the long run.
  6. Evaluate all data from suppliers and subcontractors. It is important to be sure that subcontractors will be able to complete the project. It is best if you familiarize yourself with information about subcontractors - their qualifications and past projects. You need to study proposals from at least 3 companies for each part of the project. So you can analyze each performer as much as possible to select reliable employees.
  7. Assess the risks. There are no completely risk-free projects. Therefore, it is very important to analyze and manage them. Understand how best to minimize risks. Evaluate even minimal and seemingly unrealistic risks to understand whether you can cope with them at any stage of the project.
  8. Salary. If you get your labor costs right, you'll be doing a huge amount of work on the application, because it's one of the hardest steps. It is important to estimate the number of materials to understand the labor costs for their use. A complete list of materials gives the appraiser the total number of hours worked. Rates should not be lower than the average for the region.
  9. The cost of materials and equipment. Estimate your quoted cost against the cost of purchasing materials and current market prices. Buying in bulk will help you keep the price down compared to the unit price. You must have bids from at least 3 vendors for price comparison. Don't forget to also keep track of the equipment you need to buy or rent. If your company already owns the equipment, consider depreciation. Don't forget about fuel and transport costs.
  10. Full completion of documents. Carefully read the "Invitation to Bid" and "Instructions for Bidders" - and follow all the rules. Consider the deadlines and nuances of filling out applications.
Bidding process in construction


Applying these 10 principles will increase the chances of success and bring profit to your company.