What is the Construction Bidding Process?

For a construction project, bidding is a crucial process that enables the companies or the firms to hire professional contractors. The bidding process is where contractors submit tenders as a proposal in order to manage and run that project.

In this article, we will discuss the bidding process in construction, its importance, disadvantages and mistakes to avoid during bidding.

5 Steps in the Construction Bidding Process

Like a job application or a resume, bidding gives an overview of your company’s capabilities and potential. The process is as follows;

Bid Solicitation

The project owner sends out requests for proposals or rather companies and organizations to bid for that certain project. All the requirements and specifications are laid down perfectly and defined.

Submission of the Bids

This is done before the deadline set by the owner. When submitting proposals, your company’s details and information must be stated clearly with previous projects, management plans and tasks completed. Also included the cost, equipment, overhead, labor and materials required to double the chances of you signing the contract.

Bid Selection

For government projects, there are rules to ensure the lowest bidders win the contract. Generally, the cost is considered the ultimate equalizer. Unlike the government, private projects consider other factors minimizing bias.

Contract Information

Once the possessor of the project concludes and finds the best bidder that meets their requirements according to construction bid management, there is signing of documents during preconstruction. This is done to bind the contract.

Execution of the Project

This is the go-ahead of an organization to implement the project as per agreement.

Importance of Bidding in Construction

  • Easier entry
  • Encourages time-consuming
  • Enhances value for money
  • You get to find the best team of specialists for the job

4 Common Mistakes to Avoid During Bidding Process

In bidding, to avoid errors that will lead to your failure, invest your time in preparation. This will help you lower your bid ratio as well as increasing chances of you getting the job. The faults to avoid include;

  • Avoid bidding for tenders that does not match your organization or company’s skill set. This will help you protect your reputation and above all it saves you from spending your profit in the project assigned.
  • Avoid rushing into the bidding package. Instead, go through the construction documents thoroughly and comprehend the requirement.
  • Avoid inaccurate estimates. It can lead to cutting into your profit margin. This can be avoided by putting in place an estimation system to you in the near future.
  • Avoid submitting your proposal before visiting the site. This is in terms of proximity. The distance between your place of work and the site is essential when estimating the travel cost of both workers and equipment. Therefore, it will help you avoid overlooking the cost assigned to the whole project.


The construction bidding process can sometimes be seen as complicated at first, but as a contractor, you can streamline the whole strategy by enforcing the right tools and personnel. This will save you from a disastrous reputation and avoid your profits being eaten up by the project.

Interesting Related Article: “How Construction Scheduling Software Improves Your Team’s Collaboration and Productivity