Construction companies who are providing services to construct a project no matter how large or small must see to it that both the client and the construction entity must have a meeting of the minds before they will start doing a project. You may also see bid sheet examples.
Different construction companies must present their bids for a certain project as well as the details with regard to the project. In this way, the client can choose which company they would want to work on their project. You may also like bid proposal examples.
A bid form must present the important information necessary for the bidding of the project. It serves as a basis of comparison from the different bidders, providing the client the information necessary for their decision on which construction company they would want to give their project. You may also check out what is a bid form?
Below are examples of construction bid forms that you might refer to whenever you need to create a construction bid form.
In creating a construction bid form, you must set out the details of your bid in an organized and readily readable manner. You must also remember that you are competing against many bidders in order to acquire the project. Hence, take time to create a bid form that is competitive enough and can make you stand out from the rest. You may also see auction bid form examples.
Here are some tips on how to create a construction bid form that is worth reading.
The first thing that you must do before creating a bid form is to know the details of the project that you will be working.
Read the project details thoroughly until you understand the whole project. If there is something that you yourself cannot decipher, you must not hesitate to ask the client regarding the matter for this might lead to cost overruns and underestimation or overestimation of the cost of the project. Also, think and scrutinize any specifications of the project. You may also like business proposal examples.
You must also check and investigate the construction site for this might also lead to changes in your cost estimates. There are also certain problems that might be revealed when you are checking on site. If you are not expert in this field, consider bringing with you a specialist or an expert of the field to look over the area. You may also check out service proposal examples.
You might think that this would add to your cost, but hiring them is really worth it because they can spot problems earlier and with precision.
Other jobs require that you use subcontractors on the job as you cannot do it on your own or you need more workforce to comprise a full team of your construction project. In order to know and calculate their costs and fees, you must also talk to these people and you can even haggle for their price. You might be interested in research proposal examples.
You may also request a fixed bid from all the subcontractors whenever you found out that the job that you will be working requires unusual task or performance.
After knowing the details of the project as well as talking with the subcontractors, you may estimate the costs by the stick. What does this mean?
Estimating costs by the stick is said to be the oldest and time-consuming method of estimating a certain project. First, you must look at the specification of the simple plan. Then, the project cost must be broken down into materials, labor, and overhead costs. Historical data may be the reference for the labor costs, and best judgement must be implemented for those who do not have historical data yet.
In choosing the materials that you will be using, you may consult or refer to an expert especially if you are new in the industry and you do not know where to get some basis of your estimations for the materials.
Ask for the quotes of the materials that you are inquiring and compile those quotes in one document. You may write the list of materials that you will be using in a form of a general checklist so it would be easier for you to crush out those that you have purchased when you will be acquiring materials soon.
Estimation errors might lead to overestimation, which would lead to have an overpriced bid, or underestimation, which would result in losses of your construction company.
Check if everything needed in your project is listed, calculate the total cost, and let someone recheck your calculations. Also, always remember to use the correct unit of measurement, and make sure that you are applying the unit of measurement uniformly, throughout the materials. You may also see short proposal examples.
Lastly, do not forget the soft costs as these are among the expenses that can easily be overlooked. Examples of soft costs are permits, licenses, and trash removal.
If you are not an expert in estimating costs of construction, you may also refer or use estimation software that allows you to come up with a reasonable amount in a shorter period of time faster than estimations by hand.
In cases where the client sent you a bid proposal form, you must use those forms for uniformity of the bid that the client will be receiving.
On the other hand, if there is no standard bid proposal form sent by the client, you may create your own proposal. You can look for examples of bid proposal forms in the Internet as well as bid forms such as the ones presented in the previous section. When you create your own bid form, always remember to choose a font type and size that is readable and present it in a way that it is formal and presentable.
If you are creating your own bid form, do not forget to put at the top of the page an identifying information for your bid form, for example, “Bid Proposal” or “Construction Bid Proposal.”
You may refer to the examples above for the title or the identifying information that you must include on the top of your bid form. Also, do not forget to include your company name, address, and contact details. Furthermore, also include that name or the company name that you are submitting your simple proposal to as well as their address. Lastly, write the date that you are making your bid and that expiration date of such bid.
This is the main topic that you must pay most of your time and attention to. You must include the details as much as possible to avoid misunderstanding and confusion between you and the client. More often, there are certain things that the client thinks that you agreed to, but actually, it was never stated in your professional proposal. Avoid ambiguity, and talk with the client, if possible, to discuss the scope of the construction project.
There are times when the client wanted to delay the decision-making on the construction of the project for reasons such as they need to choose between two different products or they want to expand the scope of the work for the project. In these cases, you must see if there are possible alternative in the instructions to bidders. If so, you can include in your bid form a section for alternatives.
You must also specify the modes of payment that you want from your client. Usually, for small projects, the total payment will be paid on time after the completion of the project.
For large projects, a down payment from the client may be required to be used for buying the materials and tools to be used for the project. Succeeding payments may be paid periodically or based on the percentage of completion of the project. They may also employ the methods used in long-term construction general contracts.
Also include in your bid form the work schedule for your project. The date of start and finish must be clearly specified. Only an estimation of the finish date or the length of time to complete the construction of the project must be stated. You may also state the simple schedule of work you are plotting may be subject to changes as approved by the owner or any events outside your control such as during extreme weather conditions.
Your project bid is only applicable for a certain project that you have already estimated the cost. If your client will change the scope of the client, it is fitting and proper that your estimated costs would also change. In order to make this clear to your client, you must state in your bid proposal a provision stating that a change in the scope of the project can affect the estimations. You may also like project proposal examples.
You may write, “Any changes from the above scope must be made by a written change order and will require extra charges and a possible change in the estimated time finish.”
You must also clarify on who will shoulder the cost of the insurance such as fire insurance, workers’ compensation insurance, and general liability insurance. Usually, the former is to be shouldered by the client while the last two will be shouldered by the contractor. You must discuss any other insurance that must be paid, and make things clear as to whom shall bear the cost of the insurance. You may also check out investment proposal examples.
Although the bid form is not a construction contract, you would want the client to sign the form if they are accepting your proposal. Their signature would mean the acceptance of the simple proposal and would imply that they have chosen you over other service providers.
You may attach a copy of a written agreement if you are using subcontractors, a copy of your insurance liability, and any other supporting documents that would be used as an important document before the start of your construction project.
Drafting a bid form might be challenging especially if it is your first time creating the bid form. However, with constant practice and general application of the above tips on how to create a construction bid form, you would surely experience a learning curve, a progress in your skill in creating a bid form. Sooner, you will find it easy to create a construction bid form as you get used to it.
Always remember the main points in creating a construction bid form which are as follows: know the details of the project, visit the site of construction, talk to the subcontractors, estimate the cost, refer to experts, avoid errors in your estimation, use estimation software, include an identifying information, identify the scope of the construction project, list the alternatives, specify the modes of payment, determine the work schedule, include provision of changes, determine the party responsible for the insurance, write a space for the signature, and lastly, attach supporting documents.
Lastly, do not forget to refer to the above examples of construction bid form whenever you find yourself stuck in the first page in creating a bid form.