How to Bid on Commercial Construction Projects

Once that design is completed and approved by the client, the architect then puts the design out for bids. While the architect may want to know more information about a contractor than their price, the bottom line is the primary reason for the selection of most primary contractors. In some cases, the bid is the only thing that is presented and the lowest bid gets the project.

Traditional Construction Bid Proposals

A construction bid proposal is the basis on which many construction companies are hired to serve as the primary contractor on a project. Without a construction bid proposal, there would be no way to establish the overall cost of a project, which would throw the project and the contractor-client relationship into chaos.

Under the traditional method of selecting a contractor, an architectural firm is hired by the property owner to develop a design for the building or project. Once that design is completed and approved by the client, the architect then puts the design out for construction contract bids. While the architect may want to know more information about a contractor than their price, the bottom line cost is the primary reason for the selection of most contractors. In some cases, the bid is the only thing that is presented and the lowest bid gets the project.

Design-Build Construction Bid Proposals

With the design-bid construction method, construction bid proposals cover more than just the price to build. The design-build method combines the architect and contractor as a unified team, where they present not only their price to build the project, but their architectural design as well. A design-build construction bid proposal includes an all-inclusive price, including the cost of design and construction. Design-build supporters believe this method is not only more efficient, but leads to lower costs as well.

Construction Manager At-Risk Bid Proposals

The construction manager at-risk (CM at-risk) method is another way construction project bids are submitted. Under the CM at-risk method, the contractor and architect operate separately, but the contractor is involved in the process from the beginning and serves as liaison for the client dealing with the architect.

CM at-risk bids are not blind, and the client can select whichever contractor he believes is best-suited to handle the project. The contractor's bid comes in the form of the guaranteed maximum price, which states the cost of pre-construction services and the construction process itself will not go over a certain total.

Online Construction Bid Systems

The development of the Internet over the past two decades has significantly changed many aspects of the construction industry. For more than a century, a company bidding on a project had to send large amounts of paperwork to a potential client for consideration; now, an online construction bid can be made, finishing the bid process with the click of a mouse.

There are multiple sites that allow you to view, download and print construction drawings in order to complete a bid proposal. A company must register and complete all the requirements to have access to this database. Then all information is shared among all contractors, and the notification regarding due dates and changes is sent through email systems. 

At Charter Estimating These systems provide support for:

• Selection of appropriate procurement and contracting strategies, and nomination of an appropriate principal in the contracts.
• Preparation of tender documents and contracts based on standard forms.
• Selection of contractors and consultants with proven performance records.
• Effective management of contracts, including clause commentaries, sample letters, and checklists.
• Maintenance of an effective performance management system through monitoring and reporting.
• Resolution of contractual claims and disputes.