The Master Guide To Construction Bidding - Smartsheet

Bid Like a Winner: The Master
Builder’s Guide to Construction

Bidding
by Diana Ramos on Nov 03, 2017
In This Article 
Construction contractors get the majority of their jobs by bidding on projects. While builders often get
training or mentoring in construction skills, they usually learn about bidding and how to develop a
winning construction bid on the job, and experience painful mistakes along the way.
In this guide, we’ll explain how construction bidding works, the nuances of bidding on commercial,
residential, and government projects, how to improve your bids, and how to win more of them. You’ll
Discover a better, more effective way to manage your construction bidding processes.
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find templates, worksheets, tips from leading experts, and 95 sites and resources for construction bid
opportunities.
What Is Construction Bidding?

A construction bid is the process of providing a potential customer with a proposal to build or
manage the building of a structure. It’s also the method through which subcontractors pitch
their services to general contractors.
In order to create successful construction bids, remember the industry golden rules: Start with
highly accurate cost estimates, and submit the lowest bid of all the competing contractors. The
process of forming a bid begins with examining construction plans and performing material
quantity takeoffs. If you're interested in learning more about construction planning, visit this
comprehensive guide to construction plans (https://www.smartsheet.com/how-to-read-construction-plans).
However, there are a lot of nuances and complexities behind this seemingly straightforward
formula. We will delve into those in detail later on.
First, it’s important to distinguish between a bid and an estimate, terms that are sometimes
used interchangeably. The definitions of the two are somewhat elastic. Generally, an estimate
is the calculation of the contractor’s internal costs (including materials and labor), while a bid is
the final price charged to a customer. We consider a bid to be a firm offer to the customer. The
difference between the bid amount and your expenses is your profit. Using construction
bidding software can help ensure you’re bidding the right amount. Sometimes, on small jobs,
the customer may move quickly after reviewing just an estimate, treating it, in effect, as the bid
that will represent the formal terms of the deal.
Estimates should be as accurate as possible, progressing through levels of precision from
preliminary or ballpark to square foot, assembly, and final estimate.
In construction bidding, price is always a key consideration. On many projects, especially in
government construction, the owner must choose the lowest bid. On other jobs, however,
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qualifications or other factors can be equally or more important than price. The selection
process depends on the project delivery method — we’ll break down the different methods
shortly.
The basic construction tender process involves the following activities:
Bid Solicitation: The owner seeks bids and provides a package of material with drawings,
specifications, and other scope documents. This is also known as making a request for
proposal (RFP) or a request to tender (RTT),
Subcontracting: General contractors take bids from subcontractors for pieces of work.
Depending on the project method, this may occur after a general contractor wins a bid.
Bid Submission: Builders submit bids by a deadline.
Bid Selection: The owner reviews bids and chooses a winner.
Contract Formation: This phase finalizes the terms and lays the legal groundwork for the
project.
Project Delivery: Construction takes place.
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(https://www.smartsheet.com/construction-projects-at-risk-ebook?fts=ic-en-construction-bidding)
Three Major Decisions Shape Construction

Bidding
To bid on construction, you need to understand three important structural decisions that
owners make and that shape construction projects. An owner must decide on the following
elements:
A project delivery method
A procurement method
A contract model
We’ll explore each of these three elements in detail. Each choice that an owner makes
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succeed as a bidder, you must understand how these decisions impact you and design your bid
to ensure you are competitive, make sufficient profit on the project, and account for the risks
you will bear.
Construction Project Methods

First, let’s look at project delivery systems. There are four major methods for delivering
construction projects. While they vary in approach, they share the common goal of helping
owners build new structures on time, within budget, and in line with quality and performance
requirements. /
As a construction bidder, you will see that each method defines your role, responsibilities, and
risks somewhat differently. Some methods share similarities.
Traditional project delivery also goes by the names design-bid-build (DBB) and design-tender
and is the most common process for the construction of nonresidential buildings, especially
government projects. In this approach, an owner hires an architect or designer independently
from the contractor who manages construction.
The owner selects an architect who develops complete designs. Then, the owner solicits bids
from contractors to execute the designs. The bid covers the total cost of building the structure,
including any money for subcontractors who work under the general contractor. The bid also
incorporates the general contractor’s costs, overhead, and profit.
Some advantages of DBB are owner control of design and construction and ease of
implementation. In addition, because an architect finishes a design before an owner awards a
construction contract, it is easier to determine the cost of construction. The drawbacks of this
particular project delivery system include that the owner must bring substantial expertise and
resources, and also share responsibility for project execution. The owner is also at risk of
dealing with increased contracting costs if there are any design errors.
Multi-prime, also called multiple-prime, contracting is a variation on design-bid-build
(https://www.colorado.edu/tcm/sites/default/files/attached-files/A.4%20Multi-Prime%20%28June%202014%29.pdf).
Here, the owner contracts directly with all participants, including the architect, subcontractors,
and a construction manager (either an owner staff member or a hired party). In this scenario,
the owner acts as the general contractor.
Owners turn to this method when they need to fast-track construction or when there are urgent
considerations. Project managers can solicit bids for each of the project’s systems or
specialties as soon as the project’s design is complete, which gives them greater control over
the schedule.
Multi-prime contracting also enables the owner directly to obtain materials for the project.
Rather than obtaining
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Multi-prime also works well when construction proceeds in phases. The owner enters
contracts sequentially for each part of the job (for example, foundation would come first,
followed by structure).
There are several drawbacks to the multi-prime delivery system. The owner carries the heavier
burdens of coordination and management as well as the resulting increased risks of work
duplication or omission. The owner cannot confirm the final cost of the project until they’ve
secured the last contractor. There is a higher potential for poor coordination, change orders,
quality defects, and delays due to the number of project participants. Plus, multi-prime projects
sometimes suffer from a lack of strong central authority and management among the
contractors. In DBB, the general contractor would play the role of that strong authority figure.
In design-build, aka D-B or D/B, the owner contracts with one entity that handles both design
and construction, and one price covers both phases. That entity goes by the title design-builder
or design-build contractor.
The design-builder concept has its roots in the historic master builder, who in pre-Renaissance
times was a highly skilled individual responsible for both the design and construction of a
structure. During the Renaissance, the roles of designer and builder split, and each position
became more distinct and specialized over time.
Owners find design-build attractive because it streamlines the process of commissioning a
new building, and it increases collaboration between project participants. The design-build firm
usually contracts out some aspects of the project rather than doing everything in house, but all
participants work together on the same team. Proponents cite this characteristic of
collaboration as an advantage over traditional design-bid-build. This is because one of DBB’s
greatest vulnerabilities is the potential for conflicts and disputes to arise among all the
independent parties when things go awry.
In design-build, the design-builder stands accountable to the owner for all aspects of the
project. The Design-Build Institute of America says that when one person possesses sole
responsibility for a job, owners experience better project delivery, including faster execution, /
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fewer change orders, reduced administrative burdens, lower costs, and fewer disputes that
result in litigation.
According to research by the Construction Industry Institute and Penn State University on 351
projects from 5,000 to 2.5 million square feet, design-build achieved 6.1 percent lower costs
and 33.5 percent faster delivery speed when compared to design-bid-build. Having faster
delivery also creates financial benefits since construction loans, carried while workers are
building a structure, charge higher interest rates than those of permanent financing, which kick
in when the project is done.
Design-build has become increasingly popular. A 2013 DBIA study found that owners used this
method on more than 40 percent of non-residential construction projects in 2010, up 10
percent since 2005.
Within design-build, there are different models. One of these models is contractor-led design-
build (CLDB), also called builder-led design-build, in which the general contractor manages the
project. CLDB accounts for most design-build projects. Recently, the architect-led design-build
(ALDB) model, also termed designer-led design-build, has grown. In ALDB, the architect is
responsible for delivery of the building. A 2005 survey cited by Architectural Record magazine
(https://www.architecturalrecord.com/ext/resources/archives/practice/pdfs/0511hopes.pdf) found that 55
percent of design-build projects were headed by a contractor, 26 percent by an integrated firm
with both design and construction expertise in house, and 11 percent by designers.
A third design-build school of thought contends it does not matter which specialty holds the
primary contract for the project; either can do just as well. Project-led design-build, in which the
project team consists of a cohesive unit of all the job’s disciplines, always puts the project’s
best interests first.
While design-build has compelling data on speed and cost, construction experts say that it also
has disadvantages. The design-builder’s very incentive to reduce speed and cost can impact
quality and put the owner at the mercy of the contractor, who may or may not act with integrity
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owner, the architect does not represent the owner s best interests. (In DBB, the architect does
work for the owner and therefore represents their best interests.) Moreover, because there are
so many unknowns about the future of a building at the beginning of a D-B project, owners
must define more of the project’s requirements, objectives, and materials before soliciting
bids.
With no construction documents yet to work from, design-builders also assume risk in cost
estimating because the scope of work is not well defined. Contracts on design-build projects
can address how to handle unexpected developments without financial penalty to either the
owner or the designer-builder.
Construction manager at risk (CMAR), also called construction management at risk, CM at risk,
CM@R, construction manager/general contractor, and CM/GC project delivery, is another
alternative to traditional design-bid-build and has a track record for reducing cost.
Like design-bid-build, in the CMAR method, different firms handle design and construction.
Unlike design-bid-build, however, the construction manager joins the project at the start before
the architect designs the building; the construction manager may even help choose the
architect. The CM and the architect work together during the design phase. The construction
manager acts as a consultant to the owner during the design and construction phase and often
handles some of the construction itself.
The construction manager transitions to a general contractor when construction begins. You
use this method primarily for complex projects and choose the construction manager on the
basis of expertise and qualifications, not lowest price.
The construction manager’s bid to the owner is a guaranteed maximum price (GMP)
representing the total of pre-construction services, actual construction, and the construction
manager’s fee and contingencies. According to an article by Tommy Brennan, Business
Development Manager for Ulliman Schutte Construction, most CMAR projects require the
contractor to provide the GMP when the design phase is 60 to 90 percent complete.
When the design is complete, the construction manager solicits bids from subcontractors to
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In the CMAR method, you shift some of the project risk to the construction manager because if
actual costs exceed the GMP, such as through higher subcontractor bids, change orders, or
imprecise forecasting, the owner does not bear that burden. If the construction team builds the
project for less than the GMP, the owner may receive the savings, or the owner may have an
agreement to share them with the construction manager.
The benefits of this approach for owners include greater cost control, reduced risk, and
superior project management. The construction manager can work with the architect and the
owner during the design phase to make sure that the construction team can build the plans
within budget, and the owner knows upfront what the project will cost. The project may also
move faster because you may be able to start construction before the design phase is
complete.
The construction manager acts on behalf of the owner and manages the project with the
owner’s best interests in mind. In addition, the construction manager brings expertise
regarding value and constructability. These attributes translate into fewer burdens on the
owner and ensure a high quality outcome.
On the negative side, the owner must cede some project control to the construction manager,
and, as both a contractor and a project manager, the construction manager may face some
conflicting priorities.
CMAA, the national organization for construction management, has training and resources for
both owners and construction managers on the types of projects best suited for this method.
The general consensus among construction professionals is that CMAR saves time and money
compared to design-bid-build, but not compared to design-build. However, quality can be higher
with CMAR than with design-build, and CMAR is a better match for larger, more complex
projects than design-build is.
Integrated project delivery (IPD), sometimes called integrated team, is the newest of the major
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team that shares risk equally. Often, they become legally bound in a single contract, and this
may expand to include other consultants and subcontractors.
This approach strives to increase efficiency through collaboration and integration. The United
Kingdom’s Office of Government Commerce estimates 30 percent of construction costs
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can be saved when integrated project teams work together and seek continuous
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improvement across a series of construction projects. Single projects with integrated teams
can save two to 10 percent.
Early participation of the general contractor and continued active involvement by the owner are
hallmarks of IPD. This closer cooperation drives the advantages of IPD, and project participants
generally have fewer disputes, claims, and conflicts. Therefore, the absence of litigation and
arbitration offers another source of cost savings and efficiency.
Because the architect and contractor participate in the project entity equally, they are a jointly
accountable. In discussing the advantages, IPD specialist firm gkkworks notes, “Experts in
design and construction contribute to ALL phases of the project.”
However, there are some drawbacks: Finalizing project criteria and reaching a contract can be
difficult and time consuming, the CMAA says. In addition, the smooth management of the team
may depend most on the individuals involved, and team selection can be challenging.
The method works well for complex private projects, projects with tight deadlines, or those
where the scope is not well defined. Government entities usually are barred from IPD because
it lacks competitive bidding. The American Institute of Architects has compiled an in
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Construction Procurement Methods
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Once project delivery method is selected, the owner faces the decision of how it will procure
construction services. A number of factors influence this decision. Government owners often
fall under laws that dictate how they must make purchasing decisions.
Other influences include the political, economic and social environment, the owner’s experience
and expertise in construction and construction procurement, the size, complexity, location, and
uniqueness of the project, the timing of the project and whether schedule compression is
needed, and cost considerations such as how much price certainty the owner needs.
Construction procurement is generally divided into four types: lowest bid, traditional, integrated,
and, negotiated and managed.
Traditional procurement aligns most closely with the traditional project delivery method,
design-bid-build. The owner buys construction services separately from design work, tenders
for construction bids after design is complete, and the construction bidder knows all the
project specifications before bidding.

The most common procedure in this case is competitive bidding with the lowest bidder
winning. It’s often called low bid or lowest bid procurement. Governments and other public
entities commonly use this method because laws, drafted in response to bribery scandals,
require them to prove they received the best possible price in a process free from corruption. In
those cases, bids are opened and reviewed publicly.
In competitive bidding, contractors are invited to submit their best bid by a deadline, and the
owner compares bids against one another. This is called sealed (http://www.ebidsystems.com/sealed-
bidding-make-sense/)bidding. Because the bids are all to build the structure according to the
designs and specifications developed by the architect (i.e. the same product), the contractor
who bids the lowest amount wins. In fact, the bid number may be the only piece of information
reviewed.
However, this process does not work for all projects. In two-step bidding, a first round of review
examines the technical qualifications of all the bidders. Bidders must show they have the skills
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financial and operational consequences of flawed or incomplete construction are damaging, it
makes sense that an owner commissioning a hydroelectric dam, data center, or hospital would
want assurances that the builder has demonstrated expertise in this type of project.
In two-step bidding, the owner creates a short list of those bidders who meet the technical
qualifications. Bids from contractors who passed the first round move to the second round.
Their proposals are called qualifying bids, meaning that they meet the requirements of the
customer for technical expertise. (Other benchmarks can also be used, such as being able to
build quickly enough to meet a specific completion date or to comply with government
requirements for using a certain percentage of locally owned subcontractors.)
In two-step bidding, the lowest qualifying bid wins. The U.S. federal government uses this
method to award inde nite delivery/inde nite quantity (IDIQ) construction contracts under
federal acquisition regulations. IDIQ contracts cover an unknown amount of services over a set
period of time. In construction, IDIQ is often used for architect and engineer services and job
order contracting (JOC).
Job order contracting was developed in 1982 by Harry H. Mellon, then chief engineer in Europe
for the U.S. Army, and it spread to all branches of the military and levels of government,
including housing authorities and school systems. Under JOC, an owner gets a long-term
umbrella contract that sets a unit price for common renovation, repair, or small construction
jobs. When the need arises, the owner calls on the contractor to perform the work as agreed in
the contract. This system creates efficiencies: Since owners do not have to identify contractors
and negotiate contracts each time they need a job done, the work begins more quickly. And
because prices are fixed on work and materials over a larger cost base of multiple jobs,
economies of scale are realized. Costs of procurement are also reduced. The Center of JOC
Excellence has extensive education resources that explain the advantages of job cost
contracting and how to get going with it.
Best value source selection is a procurement method in which buyers award contracts based on
other factors as well as cost. The goal is to achieve the best combination of price and
performance In this process the owner (usually a government agency) will define source /
performance. In this process, the owner (usually a government agency) will define source
selection criteria that add value to a bid. These can include past performance, more robust
management approach, highly qualified key staff, or other factors. Using best value selection
gives owners, who might otherwise be compelled by law to choose only on price, greater
flexibility.
The implementation of best value selection can be similar to two-step bidding. In a best value
selection process, bidders might first submit their qualifications based on the defined selection
criteria; those that pass then submit technical and price proposals. Best value selection can
also proceed in a single step process with qualifications, technical, and price proposals
submitted simultaneously. A good guide on best value selection
(https://www.agc.org/sites/default/files/Project%20Delivery%20-%20Best%20Value%20Selection.pdf) has been
developed by the Associated General Contractors of America and the National Association of
State Facilities Administrators.
Under negotiated procurement, an owner selects a contractor without advertising or
competitive bidding. The U.S. government uses this method and negotiates with the potential
builder on price and technical requirements. It awards the project to the contractor who makes
the proposal most favorable to the government. The proposals are not publicly opened.
Unlike tendering (in which a proposal is accepted or rejected), in this method, contractors’
proposals are subject to further negotiations with project managers. After analyzing the
proposals, they proceed with those that appear to meet broad technical and cost
specifications. The two sides discuss the project details, objectives, conditions, schedule and
cost, and then bargain over the variables. The contractor who offers the most attractive
proposal wins. While the process is competitive, the competition may not focus on price, but
rather on a range of factors such as technical ability. This method allows greater flexibility to
finetune the deal in terms of management approach, technical solution to a problem and
terms.
In private projects, the owner may go through this process with just a single bidder. Anderson-
Moore Construction Corp in Lake Park, Florida argues that the negotiated approach offers
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owners greater value because the contractor can identify changes and cost savings before the
project starts, eliminating the need for change orders.
U.S. federal negotiations favor sealed, competitive bidding procurement, but allow negotiated
procurement in certain defined cases.
Sole source procurement, also known as single-source procurement, direct select, or a no-bid
contract, is a non-competitive method you use when only one provider can fulfill the
requirements of the project.
Government agencies can justify not using competitive bidding process in certain situations,
such as emergencies or if, due to unique and complex specifications, only one contractor is
capable of handling the project. Another reason would be if the new structure interfaces or
connects with another specialized building, and the owner wants to make sure the two are
compatible, like an expansion of a wastewater treatment plan using proprietary technology.
But sole source procurement can be vulnerable to abuse, so government buyers should
proceed with caution.
In business, owners may decide on sole source procurement if, for example, they have a
successful relationship with a contractor and want to replicate a prior contract or project.
Private parties are not required by law to comply with competitive-bidding regulations unless
they are receiving government funding, and they may feel the time and management effort
saved with this approach offers strong business rationale.
Digital Procurement and Online Construction

Bidding
Digital procurement of construction services is becoming the norm. While the method is new,
the underlying procurement models have not changed. For example, sealed bidding got its
name becauseabidders
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have made paper envelopes obsolete, but bidders still confidentially tender competitive bids in
virtual lock boxes.
Digital procurement uses websites and software as a service (SaaS) platforms to handle
tender calls, requests for proposals, requests for quotes, design bids, distribution of bid
documents, bid submission, and other parts of the procurement process. Standard formats
and reusable templates facilitate the preparation of bid packets.
These systems make it possible to disseminate and share large amounts of paperwork,
including construction drawings. Users are generally required to register to access a database
of tender opportunities. The system will notify users of due dates and any changes in project
specifications.
Such systems are more efficient than paper bidding, and they make it easy for government
agencies to show they are informing all bidders simultaneously and giving them equal access
to information. They also provide audit trails (https://www.smartsheet.com/audit-trails-and-logs), which
are helpful in the event of a bid protest.
Once a winning bid is selected, these systems also assist in contract management with
performance reviews, sample letters, clause commentaries, and more.
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Contract Options in Construction
Procurement
In developing a construction bid, pay close attention to the contract format that you propose.
Often, the owner will dictate what type of contract it is willing to enter. The type of contract will
determine how your costs and profit will be covered. The following are among the major
contract types:
Cost plus Fee/Cost plus Percentage: A contract in which the buyer agrees to pay for all
supplies and labor, as well as an additional amount for contractor profit.
Guaranteed Maximum Price (GMP): Also called not-to-exceed price, NTE, NTX, or open-book
contract, this contract sets a ceiling on how much the owner will pay. The contractor is
responsible for any excess or overrun, unless there has been a formal agreement on scope
change. If the project costs less than the GMP, the owner retains the savings or may have an
agreement to share them with the contractor.
Lease Leaseback: A contract in which the owner leases the property to the builder who is
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Time and Material: A contract in which an agreed-upon price is set based on the time involved
and materials used for the project.
Hard Bid/Fixed Price/Stipulated Lump Sum: A contract in which the contractor accepts one
total sum for all components on the project. This is generally used for projects that have well-
defined costs and components. The builder does not have to provide a cost accounting of the
completed work. Additional payments may be included as incentives for early completion or
penalties for delays.
Percentage of Construction: A less common form of contracts in which the compensation is

based on a percentage of construction costs.
Unit Price: A contract in which the final cost is determined based on the unit prices of work,
including materials and services.
Target Price: The owner and the contractor set a targeted price for the project, and the
contractor tries to meet or come in below that price. The price includes base costs such as
subcontractor costs, contractor overhead, and profit. The owner reimburses the contractor for
his actual costs. The owner and contractor share any cost savings or overrun under a formula
agreed-upon in advance.
Construction Bidding on Residential Projects

The methods and models we have discussed so far generally relate to commercial and public
projects. So if you are bidding on single-family residential construction jobs, very little of this
will be relevant to you. Residential construction consists of a few major project types:
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Remodels and Renovation: Existing homes are updated or expanded by their owners, who
intend to continue living there.
Custom Home Construction: An owner commissions the building of one house on a specific
site for their family.
Speculative (“Spec”) Home Construction and Remodeling: A home built or remodeled by a

builder, investor, or developer with no specific buyer in mind. These projects are usually driven
by the belief that the house can be sold for more than was spent on construction.
Subdivisions and Tract Homes: Multiple homes built by big construction companies on large
vacant sites. The house styles and floor plans are similar, and the volume and replicability
enable the builder to achieve a much lower cost per square foot.
Multifamily Dwellings: Apartments and townhomes are also mostly the province of developers
and large construction companies.
The last two types of projects have much more in common with real estate development than
with other types of home building, and construction bidding on these projects is more like the
process for commercial work described earlier.
For homeowner remodels and renovation and new custom home construction, owners and/or
their architects will generally use competitive bidding or cost plus fee contracts. With
competitive bidding, contractors with experience building specific styles or certain price points
or technical expertise will be invited to bid based on project specifications.
In cost plus, contractors get their actual costs plus a percentage. They start working with the
owner and architect early in the design process. Advocates feel this method provides greater
value because the builder gives pricing input and estimates and proposes ways to save money
or improve quality before construction begins.
Whatever contract method is used, bidders must craft their proposals carefully to ensure they
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single-family builder has a net profit margin of 6.4 percent, while residential remodelers
typically have a 5.3 percent net profit margin. Those leave little room for error.
Homeowners often hear that they should get at least three bids on their building project, but
builders are becoming less willing to prepare competitive bids, especially in relatively stable
economic times, because they are very time consuming to compile for a mere shot at a
project.
If you are a homeowner, there are some best practices to hiring a custom home builder, and if
you are a contractor, there are some best practices to getting hired. The most important is
to improve the accuracy of your (https://www.buildingsolutions.com/industry-insights/13-tips-for-accurate-
construction-project-estimates)estimates; frequently, contractors miscalculate the costs of labor,
materials, or subcontractors. Invest in estimating software to make this more efficient.
Some ways to improve your estimating skills are to get to know the house with a site visit,
study the drawings, and talk to the client to understand their needs.
Also, make sure you consider all costs such as sitework, finishes, HVAC, subcontractors,
equipment, materials and overhead, which includes salaries, office rent, vehicles, and other
non-job-specific costs of doing business. On average, markup for residential contractors varies
widely — anywhere from 10 to 40 percent (around 20 percent is considered average). Markup is
the amount of estimated job costs added to the price charged to the customer.
This is different than gross profit, which is customer cost less cost of sales. Michael Stone of
Construction Program and Results, Inc. recommends gross margins of 34 to 42 percent on
remodeling and 21 to 25 percent on new home construction.
If your business is struggling, you may consider reducing your margin to win more business.
Pros advise resisting this at all costs because you could wind up out of business, and trying to
make money with fees and change costs over the course of construction will sour customer
relationships.
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than via email) so you can walk the customer through it. Explain how you arrived at the
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Discuss why your costs might vary from other builders.
Government Projects Offer Many Construction

Bid Opportunities
Governments at all levels and government-related agencies and bodies such as universities,
port authorities, utilities, and transit boards offer a wealth of construction bid opportunities.
Builders find these projects attractive because they range in size, and include many large
projects and mega projects with expansive budgets. In the United States, the federal
government spent $22.52 billion on construction in 2016, and state and local governments
spent $286.03 billion, according to the U.S. Census
(https://www.census.gov/construction/c30/c30index.html).
Another attraction of government work is that it fluctuates less with the economy than other
kinds of building do. In fact, governments may intentionally launch large public construction
projects during economic contractions as a way of supporting the economy and offsetting the
loss of jobs. The most famous example in the United States is the New Deal during the Great
Depression, when the Public Works Administration built dams, schools, airports, and hospitals
through contracts with private construction companies.
While government construction is a good source of bid opportunities, procurement for these
projects is highly regulated to ensure the taxpayer is getting the best possible deal and no
corruption occurs. In traditional sealed bidding, bidders must follow a highly bureaucratic
submission procedure and compile extensive bid documents, which is a time-consuming
effort. Failure to follow instructions is likely to disqualify a bid.
/
“Don’t let the voluminous paperwork turn you off. It’s
getting worse due to government at all levels
practicing job creation,” says Greg Seigworth
(https://www.linkedin.com/in/gregory-seigworth-68544511/), a
construction industry consultant who specializes in
estimating.
“And start early in the bid process. You’re going to need the extra time,” says Seigworth. “Find
the right software that won’t require you to create the same documents required on bids over
and over again. Never forget that requirements can and do change between agencies on bids
that are similar.”
These are several defined formats when governments are seeking to buy construction
services. Here are some of the most common acronyms:
Request for Information (RFI): This is used when the project sponsor needs more information
from vendors to define their project and get data on contractor capabilities. There is no
assurance that work will be awarded, and further requests are likely.
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often used to shortlist bidders. Contractors express their desire to learn more about the project
and potentially be considered. There is generally no contracting decision at the end of this
process.
Request for Quotation or Request for Qualifications (RFQ): A request for quote is the same as
an invitation for bid (IFB). This is an opportunity for contractors to bid on a project that is
clearly defined, and the buyer evaluates the RFQ primarily on price. This format seeks fewer
details on project technicalities and delivery. The result is a commitment from the owner to hire
a contractor. Request for qualifications is a pre-qualification stage, and those respondents who
successfully pass can move on to the request for proposal (RFP).
Request for Proposal (RFP) or Request for Offer (RFO): This is a formal and rigorous process.
There are usually strict deadlines, forms, and procedures. Governments often seek RFPs
through sealed, competitive bidding. RFPs detail how the contractor would execute the project
and what the cost would be. An RFP may seek to have the contractor propose ways of handling
specific aspects of or problems in the project. There may not be clear specifications.
Request for Tender (RFT) or Invitation to Tender (ITT): This process is similar in its level of
rigor and formality to the RFP, and it is used when the owner has a clearly defined project. The
buyer evaluates tenders on both price and qualitative factors.
U.S. Federal Government Construction

Bidding
The federal government’s acquisition of design services is covered by the Brooks Act and the
Federal Acquisition Regulation that set up a qualifications-based selection method. The
General Services Administration has adopted a Design Excellence Program
/
(https://www.gsa.gov/real-estate/design-construction/design-excellence/design-excellence-program) that uses a
two-step process to select architects and engineers for public buildings.
For construction acquisition, the federal government sets a prospectus threshold
(https://www.gsa.gov/real-estate/design-construction/gsa-annual-prospectus-thresholds) and awards projects
below that level through sealed bidding, low-price, technically acceptable competitive
proposals, or competitive orders under IDIQ construction contracts discussed above. The
lowest responsive (meaning the contractor meets all the requirements of the solicitation),
responsible (meaning the bidder is capable and qualified to perform the work) bid gets the job.
U.S. federal government major construction contracts use so-called source selection under
federal regulations. These call for technical and price proposals, then best value selection is
applied.
To bid on government construction, contractors must register in the System for Award
Management and in FedBizOpps (https://www.fbo.gov/). Registration requires information such as
your name, address, taxpayer identification name and number, bank routing and account
numbers, and your DUNS number. DUNS is a nine-digit identification number for each physical
location of your business. You can apply for your DUNS number here
(http://fedgov.dnb.com/webform/displayHomePage.do;jsessionid=81407B1F03F2BDB123DD47D19158B75F).
All federal construction projects with budgets over $100,000 must carry performance and
payment bonds. Performance bonds ensure that the contractor will perform its obligations.
Payment bonds make sure everyone who supplies labor or materials on the project gets paid.
State, Municipal, and Other Local Public

Construction Bids
Government project managers may solicit construction bids for projects ranging from new
construction to renovation, electrical work, facilities and structures, roads, and highways to
/
dams, utility infrastructure, airports, hospitals, schools, and ports.
Job order contracting, discussed earlier, is frequently used in government procurement for
work that may arise over time, such as repair and renovation.
Each state, municipality, and quasi-governmental agency will have regulations governing its
bidding process. Generally these are analogous to federal regulations in terms of keeping the
process transparent, competitive, and secure. Government entities may seek to lower the cost
of procurement by pooling their purchases through centralized contracting authority, such as a
statewide electronic procurement portal. This approach also allows procurement offices to
become centers of expertise that create consistency across construction projects, and also
ensure fairness.
Government entities also go to great lengths to ensure that all potential bidders have equal
access to bid opportunities and information. It is mandatory to post tenders publicly (the
preferred way of doing this is through online sites).
Governments use these sites to disseminate project information and avoid meetings or phone
calls with bidders, in an effort to prevent the appearance of favoritism or unequal access to
information. The stakes are even higher for large, high-profile projects that may be politically
controversial.
When sealed bids are opened, procurement officials will disclose all bids including the winner
(this is another way to ensure all bidders were treated fairly). These decisions can also be
challenged in what is called a bid dispute.
After a contractor receives notice of award, they have a period of time (usually just a few
weeks) to sign a contract, and to provide payment, performance bonds, and proof of insurance.
Standardized NEC Engineering and Construction Contracts by the Institution of Civil Engineers
are often used in the UK, New Zealand, and Australia, among other countries. Once that is in
order, the government will issue a notice to proceed with the project.
In addition to other regulations, states and cities may set standards for how contractors must
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that contractors pay all workers, companies, and subcontractors on time at the prevailing
wage. Similarly, governments may have policies that prioritize hiring or contract award to
people in their state or locality, disadvantaged neighborhoods, minorities, the disabled,
veterans, and businesses owned by people in these groups.
Many states also have programs intended to support small-scale contractors in their state by
making them aware of projects they might be qualified for. For example, Washington state has
a small works roster (https://des.wa.gov/services/facilities-leasing/public-works-design-
construction/construction-contractors/join-small-works-roster). Licensed contractors can apply to join the
roster and win projects with budgets under $300,000.
Documenting the Construction Bid

As we have noted, government projects usually require extensive documentation and forms.
The same applies to large commercial construction. The smaller the project, the less onerous
the project becomes.
All construction bidders are generally required to detail their bid in a document called the bid
template, the bid sheet, or the bid form. This specifies the project site and the names of the
owner and customer. It gives a project narrative, explains what is not included or is the owner’s
responsibility, and sets a completion date and cost. It provides a breakdown of costs,
materials, and labor. The owner will sign this to formally accept the proposal.
/
Download Construction Bid Sheet Template
Excel (https://www.smartsheet.com/sites/default/files/IC-Construction-Bid-Sheet-Template.xlsx) | PDF
(https://www.smartsheet.com/sites/default/files/IC-Construction-Bid-Sheet-Template-PDF.pdf)
Technology Changes Construction Bid

Preparation
/
Since their introduction more than 20 years ago, the evolution of construction bidding
applications has made the preparation of construction bids much easier. General contractors
use these tools for estimating, budgeting, and refining their bids.

“Having a centralized, online workspace to manage
bids and project information is critical. Bid
management software, integrated with estimating
and takeoff software, is the industry standard for top
performing GCs,” says James Benham, CEO,
JBKnowledge (http://jbknowledge.com/), which makes
SmartBid (https://smartbid.co/).

“Bid management software helps them manage subcontractor data, monitor communications,
share project documents, compare bids, and compile the most complete package for owners.
Not to mention, solutions providers often have customer service and success staff who can
help companies optimize their bid process on top of implementing the software.”
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including labor, materials, and overhead. Therefore, if the contractor knows that installing a
sink (including the fixture, labor, overhead and all other expenses) costs a certain amount, and
there are 12 sinks in the building, then the the total cost for sinks will be close to 12 times the
job cost. He does not need to calculate each one separately unless the sinks are not uniform.
You can also define jobs and save them within the software to reuse on future projects.
Usually, these applications come with a database of construction costs. A contractor can
subscribe to updates, or receive automatic updates if the solution is cloud-hosted.
Construction pros warn that these databases represent national, regional, or state averages,
and their data can be inaccurate for an individual project.
Getting a feel for how closely your local costs align with the data is very helpful. Storing your
bids within the tool allows you to compare as-built expenses to budget and improve the
accuracy of your bids. For example, if you find that your actual costs were about 10 percent
higher than database costs in a past project, you can add 10 percent to the averages when
budgeting your next job, or use your actual job costs to make projections for a similar future
project.
Construction pros cite other advantages of these tools: They reduce the number of errors,
centralize your information, and keep data easily accessible by all participants, including those
in the field. All members of the team quickly learn about any changes or updates. Using these
tools also helps when accepting subcontractor bids.
Benham says that managing subcontractors is a weak point for many general contractors, and
he recommends compiling good data and history on subcontractors. “Too often, general
contractors don't review a subcontractor's prior history, either with their company or with
others, before engaging them on projects,” Benham says.
“Especially for GCs who do not have a structured prequalification process, where
subcontractors run through a questionnaire either annually or per project, it can be tough to
maintain accurate data on subcontractor performance, compliance, and capabilities. In
addition to not having a prequalification process, many contractors still use static
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centralized, secure, and organized database, general contractors spend hours just sifting
through, de-duplicating, and updating their subcontractor contact information before they can
even distribute bid information.”
Bidding applications are often part of suites that handle all aspects of construction
management including lead generation, scheduling, and accounting.
Tips to Improve Bid Accuracy and Win More

Construction Bids
Your success as a construction business depends on many things, but bid accuracy is among
the most crucial. Accurate bidding requires you to estimate precisely how much a building will
cost to construct in terms of labor and material and have exact indirect and overhead costs.
This knowledge enables you to formulate a bid that is competitive in lowest-bid tenders
without pricing your proposal so low that you lose money (which, if the job is big enough or the
mistake is repeated over time, could put you out of business).
“Don’t cut corners with respect to bid preparation,” Seigworth urges. “Be methodical with each
and every bid; use a ‘cross the T’s and dot the I’s’ approach. It will serve you well.”
Accurate bidding starts with pinpointing your direct and indirect costs and determining your
profit. If you want to bid on bonded jobs, bid bonds guarantee the accuracy of your bid, and the
surety company will want to see a track record of accurate bidding.
How do you improve the precision of your cost calculations? Construction pros say it all starts
with being painstakingly accurate in your construction estimates
(https://www.smartsheet.com/construction-cost-estimating).

“Mistakes in quantity takeoffs immediately and negatively impact project costs, both in
/
material amounts and durations; next to that,
misunderstanding the scope of work can lead to
missed or overestimated work,” says Dan Frondorf,
owner of civil cost estimating consulting firm DG
Frondorf and Associates (https://dgfrondorf.com/).
“Consistency in takeoff procedures and cost development practices will yield consistent
results. Being organized in tracking the large quantities of information that estimators generate
is another important best practice,” Frondorf says.
The level of detail in construction plans and specifications has a big bearing on your ability to
be accurate, so get the best possible information from the owner and architect before you
start. Also, check the site yourself to understand better what prep work is needed.
“Government owned projects often have stricter specs and require more quality control than
other projects, so spec reading is especially critical on these bids,” Frondorf notes.
Then prepare your bill of quantities, which is an itemized list of the work and materials required.
Creating a bill of quantities is a four-step process that used to be done by hand on paper and is
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software. /
Taking-Off Quantities: Working from the construction documents, a quantity surveyor will
measure the tasks and items of work in a project. This requires scaling dimensions from
drawings. One will record these in standard units such as area, volume, or length. For example,
you can quantify excavation in cubic meters and steel supports in linear feet. It’s important to
follow one of the standard methodologies, such as the New Rules of Measurement. The
surveyor will list the number of each item in the project.
Squaring: Next, the quantity surveyor multiplies the dimensions of the component into square
area and multiplies this by the number of times this work item occurs in the construction. This
yields the total dimensions, length, volume, and area as applicable.
Abstracting: Next, the surveyor collects and orders the squared dimensions. Similar tasks and
components are grouped together. Once they have taken off and squared all items and have
obtained total dimensions, the measurements must be merged. Make deductions for any voids
or openings in the building, such as stairs.
Billing: This last step simply involves presenting item descriptions and quantities in a
structured format, the bill of quantities. The surveyor usually presents these in a hierarchy for
group, subgroup, and work section. (Examples include substructure, earthwork, and site
clearance.)
/
Download Quantity Takeoff Worksheet
Excel (https://www.smartsheet.com/sites/default/files/IC-Construction-Bidding-Quantity-Takeoff-Worksheet-for-
Construction-Template.xlsx) | PDF (https://www.smartsheet.com/sites/default/files/IC-Construction-Bidding-
/
Quantity-Takeoff-Worksheet-for-Construction-Template-PDF.pdf)
While estimating guides and databases can be helpful, do not rely on them exclusively.
Research actual costs in your local area and on your own current and past projects. Realize
that costs for materials and labor will fluctuate seasonally and with supply. Use a checklist like
the construction estimating worksheet for a house (below) to ensure you don’t overlook any
costs. Be sure to include utilities, storage and specialty services.
Consider if any materials are custom, require rush production to meet the project timeline, or
require extra handling, as all these factors will increase cost.
Be mindful of project risks and account for them in your bid. For example, if bad weather could
delay certain work, factor in the possibility of needing rented equipment longer than
anticipated.
/
 Construction Estimating Worksheet for a House - Excel
(http://d2myx53yhj7u4b.cloudfront.net/sites/default/files/IC-Construction-Bidding-Construction-Estimating-
/
Worksheet-House-Template.xlsx)
If you use subcontractors, do not simply accept them or use a cost-plus style contract. Ask for
detailed quotes and evaluate them, and seek revisions if you see inaccuracies.
Based on the bill of quantities and your labor costs, you arrive at the direct costs for the job.
Your bid will also need to account for indirect costs (the costs of construction not attributable
solely to one project). These might include project management, contractor supervision, tools
and equipment, insurance, depreciation, and more.
Further, you need to factor in overhead or general and administrative expenses. These are
incurred whether or not you have active projects and would include office rent, marketing costs,
legal, and accounting expenses.
Download Construction Bid Tabulation Template

Excel (htt //d2 53 hj7 4b l df t t/ it /d f lt/fil /IC C t ti Bid T b l ti T l t l ) | /
Excel (http://d2myx53yhj7u4b.cloudfront.net/sites/default/files/IC-Construction-Bid-Tabulation-Template.xlsx) |
Smartsheet (https://www.smartsheet.com/try-it?trp=9093&lx=3FbySMHiX-jgj-
2tUIXNA12F3tjZfBYMXSEruozjq1E&lpv=icsmartsheettemplate&lpa=construction%20bid%20tabulation%20smartsheet
&tg=&sc=&cta_from=&cta_to=)
According to construction pros, here are some of the most common mistakes people make in
construction bids:
Bidding outside your area of expertise (which makes it hard to predict your real-world costs)
Underestimating overhead costs
Taking the lowest subcontractor bid without considering quality and expertise
How to Win More of Your Construction Bids

To increase the proportion of bids that you win, start by tracking your winning percentage. This
figure is also called your win rate, capture ratio, or your bid-hit ratio.
According to a survey by contractor coach George Hedley, fewer than six percent of
construction and design-build companies know and track their ratio.
There is no “right” ratio, although you want it to be as low as possible (a 1:1 ratio would mean
you win every bid you submit). Firms that bid on a lot of projects, on highly competitive jobs, or
on mostly government work will tend to have higher ratios. Those that focus on negotiated
projects generally have lower ratios.
“It’s more important to consistently submit accurate, well developed, and complete bids than to
simply have a low bid every time; the jobs that win will have a greater chance of success if their
estimates are solid,” Frondorf advises.
According to Hedley, these are reasonable bid-hit ratio ranges for general contractors:
/
For subcontractors, Hedley looks for these ranges:
You can see patterns by tracking your data. Analyze your win ratio by sector, estimator,
geography, size of job, and other metrics. Look for trends in what type of projects you are most
likely to win, and
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to manage
/
“A general contractor's bid to an owner is only as good as the subcontractor bids it contains,”
says Benham. “Subcontractor relationships are crucial to any GC hoping to win a bid.
Streamlined, centralized communications on project details and documents creates
organization among the chaos of bid day. And subcontractors gravitate towards GCs who
share and request information clearly. Securing subcontractor relationships is a big step for
any GC, but maintaining those relationships takes time, attention, and great technology tools to
aid the communication process.”
Once you know your baseline, start working to improve your ratio:
Put more effort into your estimates. Fully understand the plans and specifications. Ask
questions. Be scrupulous in your measurements and quantity takeoffs.
Promote your business with a marketing effort focused on your strengths and past
accomplishments.
Bid on projects where you have proven strengths.
Follow all bidding instructions exactly and fully.
Employ a personal touch by meeting one-on-one with the decision maker to understand what
they are looking for and reflect that in your bid.
Make your bid memorable. Beyond all the required information, illustrate your outstanding
service, quality and expertise: Include testimonials, awards won, training, certifications,
pictures, and renderings.
“Know what you’re good at,” recommends Seigworth. “Know the competition. Don’t waste time
bidding against too many competitors. Look for an edge and or advantage you may have to
exploit making the bid most competitive. Don’t be overly concerned about bidding work outside
your area. Often times the competition is too great in your backyard. Go where your
competitors don’t or won’t go. I hate clichés, but the saying ‘think outside the box’ is absolutely
true.” /
95 Sites and Resources for Construction Bid
Opportunities
There are many websites that gather construction bidding opportunities so that you can find
what you’re looking for. You can locate these sites by utilizing search engines (using keywords
like “construction bid opportunities”), or by contacting your local association of contractors.
For example, you may reach out to or browse the sites of the Associated General Contractors
of America (https://www.agc.org/) or the National Association of Home Builders
(https://www.nahb.org/) or look into a more local group, such as the Contractors Association of
Greater NY (https://www.cagnyonline.com/) or the Master Builders Association of King and
Snohomish Counties (https://mbaks.com/) in Washington. You can also search state and local
government projects using terms, such as “bid on [state name/specialty, such as schools or
roads] construction projects.” University systems and other agencies also tender for
construction.

The following are free resources regarding construction bidding:
Bid Express: This site is free for bidders and hosts bid platforms for agencies, such as
Massachusetts Division of Capital Asset Management and Maintenance, where bid
opportunities are posted.
Building Construction Bid Network: This bid opportunity forum introduces dozens of jobs every
day across the world, focusing primarily on the United States and Canada. You can view
contact information for key decision makers, learn more about the scope of the work, and link
directly to the project or company.
/
Construction Bid Source: This site lists bid opportunities in Arizona, Nevada, Washington,
California, Oregon, Florida, Texas, Montana, and Utah. Basic project details are available with
free membership, while paid memberships offer greater functionality.
Development Business: This site publishes international bid opportunities for the United
Nations and partners, such as the World Bank, and its database allows you to filter by
geographic area and project type.
eBid eXchange: This is a portal that operates procurement platforms for agencies, including
Seattle’s construction contracting, Cornell University, Henrico County, Virginia, and the irrigation
district of Imperial, California.
Infrastructure Civil Works and Construction Tenders: This site gathers international
construction tenders and is searchable by region and country.
North America Procurement Council: This hub page links to bid sites for each state. Through
this site, you can gain access to over 280,000 combined bid opportunities throughout all 50
states.
Walsh Construction: Based in Chicago, the company solicits bidders on projects across the
United States and in Canada.
The following are paid resources concerning construction bidding:

Bid Clerk: This site provides detailed information on tens of thousands of construction jobs.
Search by sector, project status, and other criteria. You can even search by building use,
ranging from daycare centers to golf courses.
BidNet: BidNet serves a variety of sectors within the realm of construction, including roads,
highways, and prefabricated buildings. They search through RFPs each day and send you the
ones that best match what you are looking for.
Bidscope: This site describes itself as a lead search engine for project opportunities including /
Bidscope: This site describes itself as a lead search engine for project opportunities, including
stored searches and notifications.
Building Radar: Billed as a real-time search engine for construction sites across the world,
Building Radar lets you find bidding opportunities through searches of location, architect,
project keyword, and more.
Construction Data: Specializing in commercial construction, this site includes postings from
across the United States. Retail, electrical, and public works projects are available for bidding,
among others.
Construction Journal: This site allows you to access construction opportunities for sectors
beyond just commercial and residential, including industrial and manufacturing, medical,
laboratory, sewer and water, and more.
Construction Market Data: This extensive database divides project leads by states and allows
you to see bid opportunities, along with bid dates. They currently have billions of dollars’ worth
of construction project leads.
Construction Monitor: This site releases a weekly issue, including thousands of construction
projects across the United States covering 68 different markets.
Construction Wire: You can subscribe to project reports that provide leads based on the criteria
you set. You can also get contact and biographical information on point people for the projects
you are interested in.
Dodge Global Network: This site, also a smartphone app, allows you to browse construction
projects throughout North America. You can search by keyword and even download
construction plans to make sure the project is a good match for you.
Dodge Lead Center: With the same parent company as the Dodge Global Network, this site
focuses on finding you leads in your own state. They estimate having over 2,000 current bid
opportunities in California, 1,400 in Florida, and 500 in Massachusetts /
opportunities in California, 1,400 in Florida, and 500 in Massachusetts.
iSqFt: With over 800,000 construction professionals using their software, this site allows you to
see private and public commercial bids in your area. It also allows you to connect with local
contractors and manage your bids through your own portal.
Medical Construction Data: Specializing in medical building construction, this site provides
access to over 15,000 projects in various stages. Search by state, project stage, project value,
and more.
The following are government resources for construction bidding:

America’s Business Network: This website is a comprehensive list of bid opportunities,
requests for proposals, and more, centering on government agencies. Search by state, scope,
and date to find specifics about each project and the agency you’d be constructing for. (Free)
FedBizOpps.gov: This site by the U.S. federal government’s General Services Administration
boasts over 32,000 federal opportunities. You can search by state, keyword, type, and more.
Additional features include specific project details and bid requirements, and the ability to
“watch” an opportunity. To receive project specifications, you must register in the System for
Award Management. (Free)
Find RFP: This site gathers and screens government bid opportunities throughout the U.S. and
sends you notifications. (Paid)
Government Contracts and Bids: This site, which has over 34,000 active government bids,
allows you to narrow your search to construction jobs and see bid opportunities across the
United States. (Paid)
GovernmentBids.com: This subscription site lists 35,000 construction bid opportunities a

month from state, local, and federal government agencies in more than 200 industry
classifications You can search by state or region and specialty such as roads (Paid) /
classifications. You can search by state or region and specialty, such as roads. (Paid)
State and Federal Bids: This site specializes in government road and bridge construction
projects. They have information on road and bridge-related bids from over 17,000 government
agencies and also cover construction related to jails, universities, and airports. (Paid)
Onvia.com: This site lists tens of thousands of near-term government projects. The company
was recently acquired by Deltek, so its offerings may evolve. (Paid)
The following are regional resources for construction bids:

California Construction Bid Opportunities List: While this site does not list tenders themselves,
it has links to state, local, and regional opportunities throughout California, including school
districts. (Free)
City of San Diego: This site provides hundreds of construction jobs throughout San Diego and
surrounding areas. Search by region, project type, and more. (Free)
Merx: This site lists public and private construction opportunities across Canada, including
agencies, crown corporations, and private construction projects. It also lists U.S. opportunities
that are open to Canadian bidders. (Paid)
PlanHub: Cloud based application that allows general contractors to share project files and
information with subcontractors. (Free)
IHC Construction Companies LLC: This contracting company’s site offers bid opportunities
throughout the state of Illinois. The site divides openings into subcategories, like construction
management and general contract. (Free)
Infrastructure Civil Works and Construction Tenders: If you live outside of the United States —
or are simply looking for work in these areas — this site divides up projects by countries all over
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each opportunity by subcategory. (Paid)
Miron Construction: For subcontractors looking for work in the Midwest, Miron Construction
has tons of bid opportunities throughout Wisconsin, Iowa, Michigan, and more. They have
dates and descriptions of each bid, along with what the exact project is and where it is located.
(Free)
Universal Information Services: This site gathers construction leads and bids from 400 media
sources across the Midwest. (Paid)
DASNY: DASNY provides construction services throughout the state of New York and lists a
variety of bid opportunities on their board. Not only can you view project details, you can also
view a list of interested subcontractors and suppliers as well as project estimates and notices.
(Free)
Daily Journal of Commerce: For over 100 years, the Daily Journal of Commerce has been
providing information and opportunities for business and construction. The site centers on the
Pacific Northwest and includes construction bidding opportunities through a variety of
subcategories. (Paid)
Contractor Plan Center: This site has information on projects in Oregon and Washington, as
well as some projects in Alaska, Idaho, Montana, and Northern California. (Paid)
Bids PR: Updated daily, this site centers on bid opportunities throughout Puerto Rico and other
parts of the Caribbean. The site tracks and reports procurement activity for the bids you are
interested in. (Paid)
LDI Line: Calling themselves “the largest free online plan room in the Southeast,” this site is
updated daily to provide current project leads throughout the Southeastern United States. In
addition to seeing dates and logistical information, you can order hard copies and digital plans
for each project. (Free) /
for each project. (Free)
Texas Parks and Wildlife: The country’s second-biggest state has dozens of construction bid
opportunities available on any given day. In addition to getting extensive information on each
project, you can even download a PDF of construction contracting periods and the estimated
budgets for every available project. (Free)
The following are state resources for construction bids:

State procurement offices often award construction contracts. To be ready to bid on these
opportunities, find your state procurement page and create an account to get notified about
new construction contract opportunities.
Alabama: Division of Purchasing
Alaska: Vendor Self Services
Arizona: Arizona Procurement Office
Arkansas: Department of Finance and Administration
California: Procurement Division
Colorado: ColoradoBIDS
Connecticut: Department of Administrative Services Contracting Portal
Delaware: State Procurement Portal
District of Columbia: Office of Contracting and Procurement
Florida: Division of State Purchasing
Georgia: Department of Administrative Services

Hawaii: State Procurement Office /
Hawaii: State Procurement Office
Idaho: Department of Administration - Purchasing
Illinois: Procurement Services
Indiana: Department of Administration
Iowa: Procurement and Bidding Opportunities
Kansas: Bid Solicitations
Kentucky: Purchasing and Procurement
Louisiana: Office of State Procurement
Maine: Division of Contract Management
Maryland: Department of General Services
Massachusetts: Operational Services Division
Michigan: DTMB Central Procurement
Minnesota: Department of Administration
Mississippi: Procurement Search
Missouri: Division of Purchasing, Bidding, and Contracts
Montana: State Procurement Bureau
Nebraska: Department of Administrative Services - Bid Opportunities
Nevada: Purchasing Division
New Hampshire: Bidding Opportunities

New Jersey: Division of Procurement Bid Openings /
y p g
New Mexico: State Purchasing Division
New York: Procurement - Bid Openings
North Carolina: Interactive Purchasing System
North Dakota: Bidder Resources
Ohio: Procurement for Suppliers
Oklahoma: Central Purchasing
Oregon: Procurement Services
Pennsylvania: eMarketplace
Rhode Island: Division of Purchases
South Carolina: Procurement Services
South Dakota: Bureau of Administration Advertisements for Bids
Tennessee: Central Procurement Office
Texas: State Purchasing
Utah: Division of Purchasing
Vermont: Office of Purchasing and Contracting
Virginia: eProcurement Portal
Washington: Department of Enterprise Services
West Virginia: Purchasing Division

Wisconsin: VendorNet System /
y
Wyoming: Procurement and Purchasing
Useful Construction Bidding Sites

The Balance’s article, "How to Subscribe to Bid Events (https://www.thebalance.com/bids-looking-for-
construction-bids-844375)," takes you through the process of subscribing to bid events and allows
you to keep track of upcoming bids and bidding requirements.

The document Introduction to Government Agency Bids
(http://www.missouribids.com/files/An_Introductory_Guide_to_Doing_Business_with_Government_Agencies.pdf), put
together by the North America Procurement Council, takes you step by step through what a
government agency is, how they conduct business, how bids work with a government agency,
and more.

Key Terms in Construction Bidding

Best Value Method: The best value method involves evaluating and ranking contractors based
on their bids and qualifications, and assessing who is the most qualified for the best price.
Bid: A bid is a proposal to undertake a construction project or an aspect of the construction
project.
Bid Package: A bid package is a portfolio of documents, including estimates, drawings, and
specifications, that one submits for consideration for a construction project.
Bid Solicitation: A bid solicitation is contact, generally through a letter or email, to notify
/
qualified bidders of the opportunity to bid on a construction project.
Bill of Quantities: A bill of quantities is an itemized document that lays out the costs of each
component of a construction project.
Cost plus: This is a contract in which the buyer agrees to pay for all supplies and labor, as well
as an additional amount for contractor profit.
Guaranteed Maximum Price (GMP): A GMP is a contract in which you set a ceiling for how
much the owner will pay (unless there is a change in project scope).
Hard Bid/Fixed Price/Stipulated Lump Sum: This is a contract in which the contractor agrees
to one total sum for all components of the project. You generally use this type of contract for
projects that have well-defined costs and components.
Lease Leaseback: This is a contract in which the owner sells the property and then leases it
from the purchaser.
Percentage of Construction: This is a less common form of contract in which the
compensation is based on a percentage of construction costs.
Time and Material: This is a contract in which you agree upon a price based on the time
involved and materials you use for the project.
Unit Price: This is a contract in which you determine the final cost based on the unit prices of
materials.
Contractor: A contractor is a company or person that signs a contract to provide construction
services, generally concerning labor or materials.
Cost Reimbursement/Cost-plus Contract: This is a contract in which the agency provides
funds beyond those required for materials so that the construction company or contractor can
make a profit.
CSI Code/MasterFormat: CSI (Construction Standards Institute) publishes MasterFormat, a
publication that provides standards for construction projects. It includes detailed numbers,
/
cost information, requirements, and specifications for most construction and building design
projects within North America.
Design-Bid-Build (DBB): Also called design-tender, this is a method in which the architect
creates a detailed design of the project that they then present to potential contractors. The
contractors then bid on the project and must construct the building according to this design
and its specifications.
Design-Build (D-B): Design-build is a process you use primarily for residential construction, in
which you don’t involve an architect in the initial design plans. D-B uses one single contractor
or builder for the entire construction process, which allows for more flexibility than design-bid-
build.
Design Excellence Program: Created by the U.S. General Services Administration (GSA), the
Design Excellence Program provides a streamlined selection process of top-ranked architects
and engineers. Professionals in the private sector who use these contractors can also provide
feedback for their peers.
Estimate: An estimate is a process through which you project the cost of supplies and labor.
Indefinite Delivery, Indefinite Quantity (IDIQ): An indefinite delivery/indefinite quantity contract
(IDIQ contract) is a government contract that allows for an unlimited quantity of services or
supplies during a set amount of time.
Job Order Contracting: A type of contract with no set quantities that allows for multiple
projects to be completed through a single contract. This contract allows for faster procurement
time while eliminating a typical bidding cycle.
Payment Bonds: Contractors put up payment bonds as assurance that their suppliers, laborers,
and subcontractors will be paid.
Performance Bonds: Performance bonds provide assurance that the contractor will meet their
end of the contract agreement. Usually posted by a bank or insurance company, the contractor
must put up some form of collateral.
Preconstruction Services vs Construction Services: Preconstruction services are the services /
Preconstruction Services vs. Construction Services: Preconstruction services are the services
that a contractor offers before the project officially begins. These can include deliverables,
such as project scopes, risk analyses, execution plans, and more. Construction services are the
usual services that take place after the commencement of the project.
Prime Contractors: Also known as main contractors, these are the key people or companies
that agree to complete the contract. A prime contractor has the authority to hire subcontractors
to complete particular parts of the associated contract.
Procurement: A process through which one sources and evaluates all materials, potentially
making a purchase.
Prospectus Level: A prospectus level is a dollar amount that the federal government sets for a
project.
Rebid: A rebid occurs when an owner doesn’t choose any bid due to a discrepancy in
expectations between said owner and the bidders. At this point, the owner must change the
scope of the bid. This part of the process is referred to as the rebidding process.
Request for Proposal (RFP): An RFP is a solicitation by a company or agency to prospective
contractors or suppliers. It is a company’s way of letting contractors or suppliers know that
they are open for proposals for their project.
Scope of Work (SOW): A scope of work is a detailed description of the work that one must
complete under the contract. Generally, SOWs are extremely detailed, including designs,
materials, deadlines, special considerations, etc. for each aspect of the project.
Sealed Bidding: Sealed bidding is a process in which all prospective contractors (bidders)
submit their bids without knowing what the other bidders have submitted.
Source Selection Method: A source selection method is a negotiation process-oriented
strategy that agencies use to choose the proposal that best meets their goals. Each company
creates their own evaluation plan, which they must follow throughout source selection.
Statement of Work: An official document that outlines all tasks, schedules, deliverables, and
activities associated with a project This document often serves as part of the contract /
activities associated with a project. This document often serves as part of the contract.
Subcontractor: An individual or company that signs a contract to take on a portion of a larger
contract.
Two-Step Bidding: This is a process that assesses proposals. The first step is the submission
of technical proposals that meet contractors’ set requirements. The second step is the
invitation of qualified contractors to provide a bid. It is also referred to as sealed bidding.
Working Drawings: Also known as blueprints or construction drawings, working drawings are
sketches, drawn to scale, that serve as a guide for a construction project. These can include
information on framing, floor plans, elevation, and more.
Improve Construction Bidding with

Smartsheet for Construction
Mastering the complexity of construction bidding is crucial to bringing in projects on time and
on budget. That’s why using tools that help you understand the many aspects of construction
bidding is essential to your success. Smartsheet is a work management and automation
platform that enables enterprises and teams to get from idea to impact fast. Many of the
world’s leading construction companies rely on Smartsheet to stay productive, communicate
among far-flung teams, and document every step of the project.
Use Smartsheet to improve work and project documentation, increase collaboration with
proactive communication among project teams, vendors, and clients, and save time with
accurate resource management. Reduce testing and inspection errors, accelerate close-out
time, and improve job satisfaction by maintaining transparency between client and site crew.
/
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Bid Like a Winner: The Master

Builder’s Guide to Construction

What Is Construction Bidding?

Bid Submission: Builders submit bids by a deadline.

Bid Selection: The owner reviews bids and chooses a winner.

Project Delivery: Construction takes place.

Three Major Decisions Shape Construction

Construction Project Methods

Digital Procurement and Online Construction

Percentage of Construction: A less common form of contracts in which the compensation is

Construction Bidding on Residential Projects

Speculative (“Spec”) Home Construction and Remodeling: A home built or remodeled by a

Government Projects Offer Many Construction

U.S. Federal Government Construction

State, Municipal, and Other Local Public

Documenting the Construction Bid

Technology Changes Construction Bid

Tips to Improve Bid Accuracy and Win More

Download Construction Bid Tabulation Template

Underestimating overhead costs

How to Win More of Your Construction Bids

Bid on projects where you have proven strengths.

Follow all bidding instructions exactly and fully.

The following are paid resources concerning construction bidding:

The following are government resources for construction bidding:

GovernmentBids.com: This subscription site lists 35,000 construction bid opportunities a

The following are regional resources for construction bids:

The following are state resources for construction bids:

Alaska: Vendor Self Services

Arizona: Arizona Procurement Oﬃce

Arkansas: Department of Finance and Administration

California: Procurement Division

Connecticut: Department of Administrative Services Contracting Portal

Delaware: State Procurement Portal

District of Columbia: Oﬃce of Contracting and Procurement

Florida: Division of State Purchasing

Georgia: Department of Administrative Services

Idaho: Department of Administration - Purchasing

Illinois: Procurement Services

Indiana: Department of Administration

Iowa: Procurement and Bidding Opportunities

Kansas: Bid Solicitations

Kentucky: Purchasing and Procurement

Louisiana: Oﬃce of State Procurement

Maine: Division of Contract Management

Maryland: Department of General Services

Massachusetts: Operational Services Division

Michigan: DTMB Central Procurement

Minnesota: Department of Administration

Mississippi: Procurement Search

Missouri: Division of Purchasing, Bidding, and Contracts

Montana: State Procurement Bureau

Nebraska: Department of Administrative Services - Bid Opportunities

Nevada: Purchasing Division

New Hampshire: Bidding Opportunities

New Mexico: State Purchasing Division

New York: Procurement - Bid Openings

North Carolina: Interactive Purchasing System