A professional bid package is essential if you’re trying to win construction projects. Your client is looking for a well-planned, organized presentation to convince them that you’re the best person to complete the job.
So let’s take a look at what information to include as well as tips for how to prepare a professional construction bid package.
What’s the Purpose of a Construction Bid Package?
A construction bid package is a document used to define the work for a project that you’re bidding on. Not only does it highlight all of the work you’re responsible for, but it also establishes the responsibilities of the project owner.
The final result of a construction bid package is a legally binding contract that allows you to officially submit your bid for the project.
What Should a Construction Bid Package Include?
While not every construction bid package is prepared the same, there are a few key sections that you should include in order to present a professional bid and give yourself the best chance of winning the job.
Basic Information
First and foremost, you need to include all of the essential basic information about your company and the project owner. Exactly how in-depth you go with the information is up to your discretion. At the bare minimum, you should have the name, address and signature of all parties. You should also include the name and address of the project itself.
Scope of Work
The scope of work provides a thorough but concise overview of the project, specifically highlighting the work that your company will be completing. There should be a detailed summary of the services you’ll be providing and, equally as important, the services and materials you won’t be providing. This helps set clear expectations and cover yourself legally.
Existing Conditions
In your bid proposal process, you’ll likely visit the worksite to make an assessment and note any existing conditions. These conditions may affect your bid estimate or require additional action to be taken at some point in the project. Make sure to include written documentation of these existing conditions in your bid package, highlighting what actions need to be taken and who is responsible for them.
Project Cost Breakdown
Along with a worksite assessment, you’ll complete a takeoff estimate during your bid proposal process. Using the information found in your takeoff estimate, provide a detailed cost breakdown for the project including all material, labor and other miscellaneous costs.
Payment Terms
Along with the cost breakdown, put the terms of payment into writing. Make sure to specify how the client is going to pay you and when you expect to receive the payment.
Clients usually make payments in installments, so you should clearly note each one. Also make sure to include the amount of money and the total percentage of the project cost that will be owed at each installment.
Other Important Information
If you’re working with subcontractors or other companies to complete the project, you should include as much information as possible about their teams. To cover your legal bases, list any permits and approvals necessary to complete your portion of the project.
These important pieces of information can help you avoid confusion or legal issues at any point throughout the project.
Work Schedule
To give your client a clear vision of the timeline, you should include a detailed schedule of all tasks that will be completed throughout the project’s duration. Make sure that this is more than just the beginning and end of the work.
Include different checkpoints or milestones that all build towards the final step – the project’s completion.
Formal Bid and Signatures
Once you clearly define the services you’ll complete, the cost and payment terms, and the timeline of your work, it’s time to make your formal bid and get both parties to sign off on it. This formal writing at the end of the document states your intent to provide services and the total bid estimate.
Once you’ve completed your formal bid, include sections at the bottom for both parties to sign.
Tips for a Professional Construction Bid Package
Now, you hopefully have a better understanding of what goes into a construction bid package. How can you take your bid package to the next level to stand out from the rest of the competition? Follow these tips to create a professional construction bid package and win more projects.
Use Language That’s Easy To Understand
While you may understand all the nuances and technicalities of your trade, the client is not likely an expert in your field – that’s why they’re hiring you!
You’re probably presenting your bid to a project owner who may not be able to understand the technical language of your trade. Keep it simple and try to craft your bid package in a way that anyone who watches can understand the main points in your presentation. If you cram your bid package with too many technicalities, the client might not understand your plan and you may risk losing the project.
Highlight Your Expertise
When you’re laying out the basic information for both parties at the beginning of your bid package, don’t be afraid to show off your accomplishments. Clients are looking for companies that have experience working on projects similar to the one they’re hiring for.
Any background information that highlights your years of operation or experience with similar construction projects should be listed.
Make a Professional Bid Package With Takeoff Estimating Software
Another way to ease the burden of creating bid packages is to use premade templates. Some takeoff estimating software, like MeasureSquare, includes features that can help you prepare professional bid packages for your construction projects. Leveraging these templates can help you organize your construction bid package in a way that makes your company an easy choice for your clients to make.
You can find the Measure Square tools here and there is a free trial to test out the software. We are always happy to answer any questions you have. You can reach us at 1-626-683-9188 (Monday thru Friday from 8am-5pm PST) or setup a demo.