How Do I Bid a Construction Job?

In order to get contracts in the construction industry as a contractor, you must present bids to construction companies, and they award the contractor with the lowest bid. First you must pre-qualify your company by making sure you meet the requirements to bid such as having a Certificate of Insurance and an AIA Form A305 from the American Institute of Architects. Next you have to locate construction projects that you are interested in and qualified to perform before you finally prepare a bid for the job.

Prerequisites

Before you bid a construction job, you need to make sure you have adequate insurance coverage that meets the requirements of the job. The coverage will include worker's compensation, liability and auto insurance, which will all be verified prior to the contract being awarded. Complete an AIA Form A305, which lists your work history while showing your qualifications for performing the job, and submit it to the developer or contractor of the project you want to bid on. The government and local contractors provide bid opportunities online through websites, and you can visit the offices of local contractors to introduce yourself and your company.

Preparing the Bid

The first step in preparing a bid is to take a look at the work site and go over the plans. Write a list of needed materials, and get pricing and availability from your vendors. When calculating costs for materials, include an allowance for damaged and lost materials as well as delivery charges, and mark up the cost for materials enough to gain some profit without losing your competitive edge. You then need to estimate labor time, including wages and overhead costs for your employees and any subcontractors, while adding the markup to make a profit. Complete a time line for construction, allowing extra time in case of back orders on materials, subcontractor scheduling issues and inclement weather, and include an estimated date of completion. Write a detailed bid for the project to present to the client, and adhere to any proposal specifications the client has made. Be sure to provide plenty of evidence that you and your team are sufficiently qualified to complete the job, with photos of previous jobs you've completed and references. Also include how any changes in the scope of the project will be handled and how additional costs will be covered. After you bid a construction job, follow up with the client to answer any questions and to be available to negotiate if another bidder has been chosen.

Source:

The Contractor's Group