What is a construction bid?
A construction bid is a contractor’s priced offer to perform a defined scope of work under the owner’s terms. On public work it is usually a sealed bid on the owner’s form, opened publicly and awarded to the lowest responsive and responsible bidder. On private work it may be a proposal or quote with more room to negotiate.
A bid is different from an estimate. The estimate is your internal calculation of cost. The bid is the price you commit to, after your markup and business decisions. See estimate vs takeoff vs bid.
How to find a project and decide whether to bid it
Public owners advertise on state and local portals and, for federal work, on SAM.gov. General contractors send invitations to bid to subcontractors. Plan rooms and builders exchanges aggregate projects.
Before pricing, run a bid/no-bid check: licenses, bonding, mandatory meetings, experience requirements, schedule fit and whether you can staff it. Chasing the wrong jobs is the most expensive estimating mistake.
How to estimate construction costs for a bid
The estimate is built in layers:
- Quantity takeoff. Measure every item from the drawings and specs, in consistent units, with sheet references.
- Labor. Hours per unit times your labor rate, or the prevailing wage rate on public work that requires it.
- Material. Quantities plus waste, priced from supplier quotes, with tax where it applies.
- Equipment. Lifts, cranes, rentals and fuel for the duration needed.
- Subcontracts. Leveled sub quotes for work you do not self-perform.
- General conditions. Supervision, temporary facilities, cleanup, permits and insurance for the project duration.
- Bonds, overhead and profit. As separate lines, set by your company.
Write down inclusions, exclusions and assumptions as you go.
For a quick check before a full estimate, try the free contractor markup calculator.
How to get and compare subcontractor quotes
Send each trade a clear scope with the drawings, specs and every addendum, and a quote deadline that leaves you time to level. When quotes arrive, put them on one scope: mark what each includes and excludes, price confirmed gaps, and keep unclear items as open questions. A bid leveling sheet makes the comparison visible.
Short on time? Bidmere can do this for you. Trade estimates from $195, ready in 48 hours. See bid-day estimates or get a fixed quote.
Fictional example: building up a small bid
Fictional example, for illustration only.
| Line | Amount |
|---|---|
| Self-performed framing and drywall (labor, material, equipment) | $84,000 |
| Painting subcontract (leveled) | $22,000 |
| Flooring subcontract (leveled) | $31,000 |
| General conditions, 6 weeks | $18,000 |
| Subtotal | $155,000 |
| Overhead and profit (company decision) | set by your team |
| Bond premium (surety quote) | From your surety |
The point is the structure: direct costs, then project overhead, then company markups and bonds, each visible to the reviewer.
What goes on the bid form or in the proposal
On public bids, use the owner’s bid form exactly: every item priced, alternates as described, unit prices extended correctly, addenda acknowledged, and signed by an authorized person. Do not add conditions unless the owner allows them. On private work, a bid proposal states the documents priced, scope, inclusions, exclusions, price, schedule and terms; the construction bid proposal template shows the layout.
Do you need a bid bond?
Many public owners require bid security, often a bid bond, with the bid. Federal construction contracts over $150,000 require performance and payment bonds under FAR 28.102-1, and a bid guarantee is required whenever a performance or payment bond is required under FAR 28.101-1. State and local rules vary; see the state guides. Talk to your surety before bid day.
How to bid a construction project: submit and follow up
Submit early, by the exact method stated, and get confirmation. Keep a complete copy. After opening, public owners often publish a bid tabulation. If you are the apparent low bidder, be ready for responsibility questions about finances, experience and capacity. If you lost, check the tab to see where your number landed.
Can someone prepare the bid for you?
Yes. Bidmere prepares takeoffs and bid-day estimates at your rates, and bid packages with forms and a requirement checklist. Single-trade estimates are priced from $195 in 48 hours; bid packages from $1,950 in 5 business days. Your team sets the final number, signs and submits.
Frequently asked questions
What is the construction bid process?
Find an opportunity, decide whether to bid, review the documents, do the takeoff, get and level subcontractor quotes, build the estimate, add markups and bonds, complete the bid form and required documents, and submit before the deadline. The owner then opens bids and checks responsiveness and responsibility before award.
How much overhead and profit should you add to a bid?
That is your company’s decision, based on your actual overhead costs, the risk in the job, how much work you need and the market. There is no universal percentage. Calculate your overhead from your books, then decide profit job by job and keep both visible as separate lines.
What is the difference between an estimate and a bid?
An estimate is your internal calculation of what the work will cost. A bid is the price you offer the owner, after your markup, risk and business decisions, on the owner’s terms. You can revise an estimate freely; a submitted bid is generally binding once opened.
How do you estimate construction costs accurately?
Start from a careful takeoff of the current drawings and every addendum, use your own labor productivity and rates, price materials from current supplier quotes, level subcontractor quotes on one scope, and write down every assumption and exclusion. Have someone else check the takeoff on large bids.
How long does it take to prepare a construction bid?
It depends on the size of the project and the number of trades. Small single-trade bids can take a day or two; large multi-trade public bids take weeks of takeoff, sub outreach and review. Bidmere single-trade estimates are ready in 48 hours from an accepted quote.
Can someone prepare the bid for you?
Yes. Bidmere prepares takeoffs, estimates at your rates and bid packages with forms and a requirement checklist. You get a fixed price and delivery date within 2 business hours and pay only after you accept. Your company sets the final number, signs and submits the bid.