The construction bidding process is one of the most important tasks for any general contractor company. Construction bidding is essentially the process of sending a proposal, which includes multiple parts, to manage a construction project. The entire construction bidding process is broken up into multiple parts due to the fact that it is a multistage procedure. If done correctly, the construction bidding process ends in the general contractor getting their ideal bid for the project.
The first step to the construction bidding process involves physically or digitally obtaining the plans for the project. Whether it be traditional or digital procurement, the prints for the project are absolutely necessary to bid a project. The plans show each type of construction industry needed (ex. roofing, concrete, glazing, etc…). This allows the general contractor to gain knowledge on which types of companies to call and receive pricing from.
The next step for the general contractor is to reach out to construction companies in each area needed. The general contractor should seek multiple bids for each area in order to find a desirable price for the project. Finding companies for these bids can be found in many ways such as internet search, the Blue Book, or prior contacts that the general contractor already has. Once all of the desired bids have been put together, the contractor can calculate the final estimate price for the project.
Sending the Proposal
The proposal sent out after obtaining bids from each industry should include multiple sections. One section should be the unit cost per material or work. This should also be broke down into things such as labor, plant, and materials costs to cover all bases. The contractor chosen is not always chosen due to the lowest bidding price as this is not always feasible.
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