What Is in a Construction Company Bid?
A construction contractor’s bid is a proposal that outlines a company’s qualifications, in order to do a job, as well as information on how much money is needed to finish a job, plus how long the project is going to take. Most projects begin with such a bid, with which a project organizer will try to hire the best company for their job, providing opportunities for different companies to bid on the project. The company that has the best bid will be given the contract for the job.
Construction bids come in different forms. Sometimes a bid is for the whole project, as with the case of a general contractor who will submit a bid to build a housing development. However, with other cases, the bid can be from subcontractors who oversee only parts of a job, like roofers that bid on a contract to install a roof on the housing development project.
When a project is open for bids, contractors will receive basic information on the project, such as specifications, architects drawings, site information, etc., from the administrators of the job. Armed with this information, contractors will then create a bid, which will be based upon experience and beliefs regarding the cost and time schedule. Bidding can be sealed; this means all bids which are submitted blind and reviewed all together, or it could be open in nature. Sealed bidding is meant to discourage corruption or favouritism and to stop contractors from underbidding one another.
Estimates in a bid do vary. A contractor who lies in their bid is liable for penalties; however, ones which underbid in good faith underestimate the rise in material prices, for instance, or fail to think about any problems which may delay a job. This is the reason why construction bids for the lowest amount do not always win a contract, as whoever evaluates the bids could believe that another contractor will have a more realistic view of a project, in addition to more experience.
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