If you have ever worked on a construction project, you are more likely to have undergone a bidding process. Whether you are prepping bids for yourself or soliciting proposals, you understand the importance of a construction bid form. It determines who wins the project contract and is also used throughout the construction process. It is used as a safety guide, a reference tool, a rule book, and a contact sheet in such circumstances. This article discusses details about a contract form, including types and its importance.
What is a Construction Bid?
A construction bid refers to the document a developer submits to a potential client detailing the scope, estimated cost, and work schedule of a building project. This is in an effort to win the contract against other applicants. The potential client receives construction bids from several developers and chooses who they believe will deliver at the best price.
Difference Between a Construction Bid and an Estimate?
In simpler terms, an estimate is an approximation that gives clients an idea of what to expect from a developer. Bids, on the other hand, offer more details than quotes and estimates. In the construction industry, bids are used instead of estimates. A developer will present a bid specifying how much it will cost to get the job done.
What is a Construction Bid Form
Construction bid forms play an essential role in determining the cost estimates for a project. This allows the key stakeholders and project managers to budget and plan for the project by asking the contractors to submit their information by filling the bid form. It increases the accuracy and finesse when selecting the right contractor for the project.
Note: Some companies may also ask the contractors to submit a bid proposal along with the form.
Basic Elements of a Construction Bid Form
The basic elements upon which a construction bid form is structured include the following:
The basics
The construction bid form should contain contact information belonging to both the potential client and the construction company. This includes the addresses, names, and signatures of everyone involved.
Project scope
Before getting into any other details, the construction bid should lay out the scope of the project. Experts advise that you should be as detailed as possible when laying out the project scope. Focus on the services you intend to provide.
Existing conditions
Before getting started with your bid document, you need to do a site assessment. This is because it is advantageous to have a proposal that includes documentation of the existing state at the site.
cost
This is the section you inform the client of the cost estimates for the entire project. It is essential to break it down into subsections such as labor and materials. Furthermore, you should indicate the costs that will be incurred should the project last longer than estimated. By doing so, you lay down clear expectations for the client.
Terms of payment
Research shows that many people write a cost estimate but forget to include the precise terms of payment. This is information regarding the manner payments should be made.
Relevant documentation
If you have been in the construction industry, you know that projects are enormous and mostly consist of several sub-projects managed by different authorities. This is why you need to indicate precisely what those sub-projects are in your construction bid. You should also show who has control over them.
Work schedule
The quality of a construction bid lies in the work schedule. It should be more than just when the project starts and when it ends. This section includes the date that the contractor will receive approval to begin working on the project.
Formal bid and signature
In the last section, you need to present a formal statement of intent to provide the project services. You should also give the bid estimate and include your signature.
Construction Bid Forms and Templates
Having known the importance of construction bid forms, you need to create one for your bid. We have created easy-to-use templates that you can download from our site.
Things to Remember While Preparing a Construction Bid
Although the construction bid form is supposed to be based on the elements that we have enlisted in the next topic covered, there are a few techniques for efficiently preparing your form.
Such as:
a) Use Simplified, Standardized Terms
When bidding on a large project, you can easily get confused in the details, putting your bid at risk of being ineffective. Not only will this lead to the loss of contract but also affects the reputation of your firm.
b) Consider Adding Appendices
Instead of attempting to fit all of this information in the body of your proposal, you should consider providing a streamlined version of that information. After that, refer the reader to a separate budget document you have attached to the proposal.
c) Make your template easily available
To make things easier for the client, ensure that your bid template is available across the board. You can also have your team access it so that they can modify it according to the client’s preferences.