The Construction Bidding Process
As a contractor, you know the first step in any project is to bid construction. There is no set way on how to bid for construction project, but coming up with the most accurate cost estimate is one way to ensure that the job will be profitable in the end.
In 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.
The way the construction bid process works is the general contractor (and, in some cases, the architect), is selected to work on a project. In some cases, your qualifications are as important, if not more important, than having the lowest dollar amount. Still, a large percentage of the time presenting the lowest price to the owner will often be a deciding factor. In any case, one of the first things they will want to see is your construction insurance and bond permit.
How to bid construction projects
If you do not know how to bid construction jobs, it’ll be challenging to turn a profit. The best way to bid construction jobs is to allow a capable estimator with years of experience to come up with the best (and lowest) possible cost. You can purchase construction bid software and install it on your computers, or it can be web-based. Construction bid software can be very general, covering the entire project, or it can be highly specific, depending on your needs.
There are programs aimed at certain segments of the construction industry:
- Heavy construction
- Carpentry estimating
- Conceptual estimating
- Concrete estimating, and
- Insurance claims estimating, to name a few
To enhance the online construction bid, there are software programs specializing in plumbing, piping and HVAC, as well as repair and remodeling tasks. By using these software programs that develop budgets and establish cost baselines you are able to keep track of the financial status on a daily or hourly basis.
All budgetary information is stored in one location and is easily accessed, contrary to when it was manually placed in separate files. The likelihood of errors is also far less than it would be if the computations were done by hand, which makes this a major step in ensuring commercial success.
This 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. Should things go awry, and they can through misunderstandings, or the inability to finish a project as promised, you will need construction insurance CT as a means of dealing with any issues that arise.