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Preparing a construction bid involves much more than adding up material prices. Contractors need to understand the project scope, review drawings and specifications, measure quantities, evaluate labor requirements, compare subcontractor proposals, and account for exclusions and assumptions.
A well-organized estimating process can help contractors identify important details before submitting a proposal.
Start With the Latest Construction Documents
The first step in preparing a construction bid is making sure you are working from the most current project information.
Construction projects can involve revised drawings, specifications, addenda, schedules, and other updates. Using an outdated drawing set can lead to incorrect quantities or missed scope.
Before estimating, gather:
- Latest architectural drawings
- Structural drawings
- MEP drawings when applicable
- Project specifications
- Addenda
- Scope documents
- Bid instructions
- Alternates
- Existing subcontractor proposals
Having the complete document package gives the estimator a stronger foundation for reviewing the project.
Understand Exactly What Is Included
Scope clarity is one of the most important parts of construction estimating.
A contractor should determine which trades, areas, materials, and activities are included in the bid. If certain work is excluded, that should be clearly documented.
For example, a bid may need to distinguish between contractor-supplied materials, owner-supplied materials, subcontracted work, allowances, and work outside the requested scope.
A clear scope makes the estimate easier to review and can help identify gaps before the proposal is submitted.
Review Material Quantities
Material quantities are an important component of construction estimating. A material takeoff converts information from drawings and specifications into an organized list of quantities.
Depending on the project, quantities may include:
- Concrete
- Lumber
- Drywall
- Roofing
- Flooring
- Masonry
- Insulation
- Doors and windows
- Plumbing materials
- Electrical components
- Painting materials
- Sitework
The exact scope depends on the drawings, specifications, trade requirements, and project stage.
Evaluate Labor Costs
Materials are only one part of a construction bid.
Labor requirements can vary depending on project size, installation requirements, site conditions, productivity assumptions, project schedule, and the type of work involved.
Organizing labor separately from material costs can make it easier to understand where the estimated project cost is coming from.
Compare Subcontractor Proposals Carefully
General contractors often receive proposals from multiple subcontractors.
Comparing only the final price can create problems if the proposals do not cover the same scope. One subcontractor may include certain materials, equipment, or installation work that another proposal excludes.
A useful comparison should consider:
- Included scope
- Excluded scope
- Material responsibilities
- Labor
- Equipment
- Alternates
- Allowances
- Schedule requirements
- Clarifications
This process can help contractors identify differences before selecting pricing for their bid.
Document Assumptions and Exclusions
Not every project document provides complete information.
When something cannot be determined from the available documents, it is better to identify it as an assumption, allowance, exclusion, or question rather than presenting uncertain information as a confirmed project requirement.
Bid Estimators’ current estimating approach emphasizes documenting assumptions, exclusions, alternates, and unclear project information as part of a reviewable deliverable.
Check Addenda Before Finalizing the Bid
Addenda can change project requirements during the bidding process.
A contractor should review each applicable addendum and determine whether it changes:
- Material quantities
- Specifications
- Scope
- Drawings
- Alternates
- Schedule
- Pricing assumptions
Missing an important addendum can result in a bid that does not reflect the latest project requirements.
Complete a Final Bid Review
Before submitting a proposal, perform a final review of the estimate.
Check:
- Project documents and revisions
- Material quantities
- Labor costs
- Subcontractor proposals
- Scope inclusions
- Scope exclusions
- Alternates
- Allowances
- Addenda
- Bid forms and submission requirements
This final review provides an opportunity to identify missing information or inconsistencies before the proposal is submitted.
How Professional Estimating Support Can Help
Construction estimating services can help contractors organize project information, quantities, costs, assumptions, and scope before a bid is submitted.
Bid Estimators provides construction estimating, commercial estimating, residential estimating, construction takeoffs, residential takeoffs, and estimating consultation services. The appropriate deliverable depends on the project documents, requested trades, level of detail, and purpose of the estimate.
Final Thoughts
A construction bid should be based on a clear understanding of the documented project scope.
Reviewing current drawings, measuring quantities, evaluating labor and subcontractor costs, checking addenda, and documenting assumptions can give contractors a more organized basis for preparing their proposals.
The goal of estimating is not simply to produce a number. It is to create a cost picture that the project team can understand, review, and use when making bidding decisions.
Need help preparing your next construction estimate? Submit your drawings, specifications, project location, required trades, and deadline to Bid Estimators for a scope review and estimating quote.
Bid More. Win More.
