How to Make a Construction Bid Proposal
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In residential and commercial construction, jobs are awarded to contractors based on a system of bidding. Contractors estimate what a job will cost, then add the overhead and profit to the cost. The construction bid is sent to an owner or developer, who compares all the bids before awarding the job. While the lowest bidder typically gets the job, many owners will also take into account the contractor's experience, level of professionalism and manpower when awarding a contract. By making your construction bid proposal as professional as possible, you can improve your chances of winning the job.
Start with your company letterhead. If you have not yet created letterhead, simply add your company logo to the top of a blank computer document. Include your company name, address, phone and fax numbers. Under your company information, specify who the bid is being submitted to, company and individual name.
Title the document as "Construction Bid Proposal" or "Bid Proposal." Under this, put the name of the job and the date of your bid.
Include the exact scope of work you plan to perform. For instance, if you own a door and hardware company, list all materials and labor you will provide. This may include hollow metal doors and frames, wood doors, hardware, installation, keying, aluminum and storefront entrances and windows. By including the scope, you make it easier for owners and developers to compare your bid with others. You also make yourself look organized and professional.
List your price, including overhead and profit. Wherever possible, break out your costs. For example, a door contractor might show a total price of $10,000, with an add price of $2,000 for installation. This helps the owner or developer understand your construction bid and select the services they need from your company.
Indicate whether tax is included in your price as well as any other special items, such as bond premiums or insurance costs. If the job has any special requirements, such as a wage scale or minority goals, list your contribution to these items clearly.
Finish the bid with your name and direct contact information so that owners can call you with questions or changes to your bid.
Send your bid in on time and in the method listed on the bid invitation. If the construction bid invitation requests that bids be faxed, ensure yours is faxed. Include the required number of copies per the invitation.
Emily Beach works in the commercial construction industry in Maryland. She received her LEED accreditation from the U.S. Green Building Council in 2008 and is in the process of working towards an Architectural Hardware Consultant certification from the Door and Hardware Institute. She received a bachelor's degree in economics and management from Goucher College in Towson, Maryland.