The Blue Book Network - North/Central Florida Region

COMMERCIAL CONSTRUCTION BIDDING BASICS

Commercial construction bidding is not as intimidating as it may outwardly seem. Businesses of any size can easily engage in the bidding process. Whether bidding on the jobs or accepting the bids, due attention must be given. The bidding process protocol outlined below could be the difference between an accepted or rejected bid.

SPECIFICATIONS

When it comes to the bidding process in commercial construction, the exact specifications of the job are highly important. These specifications must be understood properly before the bidding starts, and all details of the project need to be outlined in proper documentation.

REQUEST FOR BIDS

After the details of the project are outlined, bids on various components of the project are sent. In most cases, clients will only request the bids from a select list of commercial construction contractors. Less frequently, the bidding opportunity may be available to anyone who qualifies for the project.

BIDDING

Once the information about the project is distributed to all the contractors, the bidding process begins. It can vary according to the rules of the project owners. In some cases, bids are sealed and then submitted to the project owner for evaluation. Sometimes the client will stage an informal bidding process involving all the contractors, who submit total amounts for the project. In many cases, the sponsor will solicit bids using a bidding network, like ONETEAM®.

REVIEWING THE BIDS

Customers usually set the deadline for the last bids from the contractors. Vendors will likely respond electronically, via an online tool like BidScope®. A review of all bid submissions begins once the bid due-date has passed. The length of time that the customer uses to review the bids will vary and often depends on the number of bids made on the project.

AWARDING THE CONTRACT

After all bids are reviewed, the customer awards the contract to the company with the best bid. The contractor with the lowest bid almost invariably manages to win. In some cases, the contractor will get the project based on other factors, such as resources, time and labor. Some customers will only choose to award contracts to a reputable service provider, while others often tend to choose a contractor with whom a prior relationship exists.

The commercial construction bidding process is relatively uncomplicated; if you play it smart during the bidding process you just might land yourself a new project.