One of the most important processes we deal with at Construction Guide is construction bidding. It’s a vital step in the construction process, but a surprising number of people aren’t completely aware of what the process involves. In this article we look at what we mean by a construction bid, and the main steps involved.
The main steps involved in the construction tender process are:
Before we look into these in more detail it’s first necessary to define exactly what we mean by the construction bidding process.
So what is a construction bid? In short, construction bidding is the process in which a construction firm works out a price for the construction project. They take the plans drawn up by the architect and their consultants, decide on materials and quantities, and then submit a price based on the construction brief. The process usually involves several construction firms, which then bid against each other for the job.
As mentioned above, the construction tender process is divided into 6 steps, which are explained in more detail here.
The first step involves the project owner searching for the initial bids. Before this step they have to assemble a package of documents, which will contain project specifications, drawings, and other documents related to the project’s scope. This step is also known as a request for proposal or request to tender, and accurate information is vital to a smooth construction bidding process.
At this point in the construction tender process, a general contractor takes bids from subcontractors for areas of work within the project. This could be for electrical work, HVAC installation, interior design, or many other steps. However, this step might not be completed until after the general contractor actually wins the bid.
This step in the construction tender process is relatively self-explanatory, and simply involves the contractor submitting their bid to the owner before the deadline.
Again, this step is relatively simple. It involves the owner reviewing all submitted bids, scrutinizing their plans, and selecting a winner based on the best bid. This won’t always be the cheapest, but that of course helps.
Once the owner has selected a bid, the construction tender process enters its final phase. During this step, the terms of the project are finalized between the owner and contractor, and the legal bits are decided and agreed by all parties.
This is when the project actually commences and completes. The construction bidding process is officially closed by this point, and the project should go ahead based on the terms agreed in step 5.
Although the construction bidding process sounds complicated on the surface, there are ways to simplify it. As a construction firm you have nothing to worry about because Construction Guide is always on hand to assist. We can guide you through the whole process of a construction bid and provide access to the most qualified architects and builders, making the whole thing straightforward. So are you ready to bid out?