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Tuesday, August 2, 2011

How to prepare a bid estimate to win a project

A bid process is required to award the most jobs in construction industry. In a bidding contest the lowest bidder will be awarded the contract. Estimating a construction bid involve some knowledge of the building process.

The bid estimate is specific to the project conditions illustrated in the plans and specifications. The bid estimate is required by contractors and subcontractors for bidding purposes or the owner to appraise bids.

In order to prepare an accurate construction bid, the most current drawings, project specifications and copies of any addenda or change bulletins that have been issued are required. The company who is calling for the bid should render all of these documents. In case the drawings are submitted from a plan room, the addenda and bidding requirements should be checked properly.

Review the drawing and floor plans. Then review the title and symbols pages for any general project requirements.

Review the project specifications for getting most sets of construction documents. Read the section related with your trade and read the prelim section featuring general project conditions.

Measure material quantity by executing a material takeoff. As for instance, an electrical contractor should take into consideration the receptacles, switches, junction boxes, light fixtures, and length of wires and conduits along with panels, transformers and any electrical connections for equipment or mechanical work. These estimates will sum up the total material price.

Work out the labor costs. Find out the time frame for completion of the job and multiply this number of hours with the average wage plus any labor burden to ascertain the total labor costs.

Put material and labor costs together and comprise any special fees like permits, wage scale, bonds, insurance premiums or other costs. Multiply the total dollar figure with an appropriate percentage to contain overhead and profit.

Finally prepare your bid form putting price, complete scope of work and the name of the project.
In case the project is different from typical designs, the contractor should evaluate the actual cost of construction by taking the actual construction procedures to be used and the related costs.

Posted by Rajib Dey
Business Development
Global Associates
A pioneer company in construction estimating
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