The Relationship Between Estimating and Bidding

Estimating and bidding go hand in hand in the construction industry. This article explores how these two processes are interconnected and why accurate estimates are essential for successful bidding.

The Bidding Process:

• Receive Bid Requests: Contractors receive bid invitations from clients or project owners.
• Estimate Preparation: Contractors use estimating software or services to create accurate cost estimates.
• Competitive Bidding: Contractors submit bids, competing with other firms for the project.
• Bid Evaluation: Clients evaluate bids based on price, qualifications, and other factors.
• Contract Award: The client selects the winning bid, and the contract is awarded.

The Role of Accurate Estimates:

Accurate estimates are crucial for competitive bidding and winning contracts. Inaccurate estimates can lead to losing bids or financial losses.

Estimating Software and Bidding: Estimating software streamlines the process, enabling contractors to respond quickly to bid requests with accurate estimates.

Estimators and contractors must work closely to ensure the bidding process is based on precise and dependable estimates.