In the architecture, engineering, and construction industry, the construction documents communicate the design requirements from the owner and designers to the general contractor. These construction documents form the basis of the construction contract between the owner and the GC for the construction project.
Establishing a construction bidding process streamlines bidding and improves the accuracy and quality of your bids. Ultimately this means more profitable work for your company.
Many small-and medium-sized general contractors rely heavily on subcontractors, so attracting the best bids from the best subs is critical to winning business and staying profitable. Putting some standard procedures in place will help you get better bids and win more work at higher profit margins.
You can look at project controls as simply good record-keeping and stakeholder communication – both upstream and downstream. When executed well, these practices tie every project element together, ultimately helping you deliver on design intent while staying on schedule and budget.
Subcontractor prequalification involves considering a subcontractor’s past performance and assessing their potential to successfully complete work before inviting them to bid on a project. The prequalification process can be performed on a job-by-job basis, or periodically (quarterly or annually), covering projects during that period.
Bid leveling is the process of reviewing subcontractor bids and comparing them on an equal basis. To do that effectively, you need a system that allows you to receive pricing from multiple subcontractors on several scopes of work and easily identify irregularities or discrepancies. This helps you evaluate pricing using “apples to apples” criteria and select the best bid.
There are several bidding types you might encounter when going after a construction project, each with its own unique needs and challenges. Depending on the bid type, you will need to adapt the way you construct your proposal to stay profitable and competitive.