What is the order of bidding a job?

Bidding a job in the construction industry involves a series of well-defined steps to ensure that contractors and construction companies can submit competitive and accurate proposals. The order of bidding on a job typically follows a standardized process, which can vary in some details depending on the specific project and organization. Here’s a general overview of the order of bidding a construction job: 

  1. Initial Project Assessment
  • Project Feasibility: Determine the project’s feasibility by assessing the client’s needs, project scope, location, budget, and timeline. Decide whether to bid on the project. 
  1. Bid or No-Bid Decision
  • Evaluate the project’s requirements, risk factors, and your organization’s capabilities. Decide whether to submit a bid based on a comprehensive bid/no-bid analysis. 
  1. Prequalification
  • Ensure that your company meets the client’s prequalification requirements, such as financial stability, experience, and bonding capacity. 
  1. Estimate Preparation
  • Prepare a detailed cost estimate for the project, including materials, labor, equipment, overhead, and profit. This estimate forms the basis for your bid. 
  1. Subcontractor and Supplier Quotes
  • Obtain quotes and bids from subcontractors and suppliers for various components of the project. Ensure that their quotes align with your estimate. 
  1. Bid Document Review
  • Thoroughly review the bid documents provided by the client, including plans, specifications, and contract terms. Understand the project requirements and scope. 
  1. Site Visit
  • Conduct a site visit to assess existing conditions, site challenges, and project-specific details. This visit helps in refining your estimate. 
  1. Bid Proposal Preparation
  • Develop a comprehensive bid proposal that includes the following: 
  • Cover letter and introduction. 
  • Scope of work, inclusions, and exclusions. 
  • Detailed cost breakdown. 
  • Project schedule. 
  • Qualifications and experience of your team. 
  • References and past project examples. 
  • Safety plan and quality assurance plan. 
  • Bonding and insurance information. 
  1. Competitive Analysis
  • Research competitors and their potential bids to assess market conditions and determine a competitive pricing strategy. 
  1. Bid Submission
  • Prepare the bid package for submission. Ensure that it complies with all client requirements and deadlines. Often, bids are submitted physically or electronically. 
  1. Post-Submission Activities
  • Maintain communication with the client to answer questions and address clarifications or changes as necessary. Attend any pre-bid meetings or site visits. 
  1. Bid Opening
  • Attend the client’s bid opening event, where bids are publicly opened and read aloud. The client may announce the selected bid or request additional time for evaluation. 
  1. Contract Award
  • If your bid is successful, you may receive a notice of intent to award or a formal contract from the client. 
  1. Contract Negotiation
  • Negotiate contract terms and finalize project details with the client. This includes setting milestones, payment schedules, and any other specific conditions. 
  1. Mobilization and Project Execution
  • Once the contract is awarded and signed, begin the process of mobilizing resources, securing permits, and commencing the project. 

The specific steps and the level of detail in each stage may vary depending on the complexity of the project and the organization’s practices. Effective bid management is essential for securing profitable projects and ensuring that the construction job proceeds successfully.