Construction bidding is the process of submitting a proposal to carry out a described residential or commercial construction project for an agreed price. Bidding can occur at the construction manager, general contractor or subcontractor level. Bids by contractors for the total cost of construction are submitted to a project owner or developer who then makes decisions based on price, contractor qualifications, and other factors.

Bid Solicitation

Bid Solicitation is the process of making published construction data readily available to interested parties, including construction managers, contractors, and the public. There are several services, including government entities and private data services, that allow project owners to release project details to solicit and obtain contractor bids. These services act as a gateway for project owners to release project information to a large group of contractors, general contractors or subcontractors in an attempt to solicit bids. Many of these services are subscription based or charge a flat rate for project data.

Types of Project Delivery

The most common methods of construction project delivery include design-bid-build (DBB), the design-build (DB), the Construction Manager as Constructor approach and a Negotiated Approach. Each of these methods have advantages and disadvantages and all can be used to successfully plan, design and undertake a given construction project.

Design-bid-build

The design-bid-build method is the most common construction delivery method. This process begins with an owner selecting an architect to prepare construction documents. In most cases, the architect will release these construction documents publicly, or to a select group of general contractors, who will then place a bid on the project which reflects what they believe cost of construction will total. This bid is inclusive of a multitude of subcontractor bids for each specific trade. The general contractor’s fee is generally built into the bid cost. Most government contracts are bid competitively using this method.

Design-build

Owners employing the design-build construction method combine the services of a general contractor and an architect. These firms work directly with the project owner to design the project and produce construction documents. The Design-Builders then act as general contractors and oversee construction while also conducting the bidding process to select subcontractors.

Construction Manager as Constructor

Under this delivery method, a construction manager is hired prior to the completion of the design phase to act as a project coordinator and general contractor. Unlike the DBB method, a construction manager is hired during the design phase, which allows the construction manager to work directly with the architect and circumvent any potential design issues before completion of the construction documents. After documents are completed, the construction manager accepts bids for the various divisions of work from subcontractors or general contractors.

Negotiated

This delivery method is similar to the Design-Bid-Build method in that design and construction are performed by different firms. Unlike the design-bid-build approach, a general contractor and an architect are selected at the project’s inception. These firms work together throughout the design phase. When design documents are complete, the final construction costs are negotiated by the general contractor through bids from subcontractors on various scopes of work.

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