Bid Preparation Guide for Contractors: How to Win More Projects

By F&K Estimatings Team

Winning construction bids is not just about having the lowest price — it is about having the most accurate and well-documented proposal. This guide walks through the professional bid preparation process.

Step 1: Scope Review and Bid/No-Bid Decision

Before investing time in an estimate, evaluate the project:

Owner reputation and payment history — Can they pay?
Project complexity vs. your core expertise — Is this in your wheelhouse?
Bid bond and bonding capacity — Do you have the capacity?
Schedule feasibility — Can you deliver on time?

Step 2: Document Collection

Assemble the complete bid package:

All architectural, structural, civil, and MEP drawings
Specifications (Section 00-99)
Addenda issued during bidding
Owner Supplementary Conditions
Prevailing wage determinations (if public work)

Step 3: Quantity Takeoff

Perform a full material takeoff organized by CSI MasterFormat division. Use digital tools like PlanSwift or Bluebeam for accuracy. Include waste factors specific to each material.

Step 4: Labor and Equipment Costing

Calculate labor using:

Local productivity rates (RSMeans, NECA, MCAA)
Wage rates specific to the project location and trade
Payroll burdens: FICA, workers comp, general liability, unemployment insurance
Equipment ownership or rental rates

Step 5: Bid Assembly and Review

Compile direct costs, add:

General conditions (field overhead)
General requirements (home office overhead)
Profit margin (typically 5-15%)
Contingency (3-10% based on risk)

Step 6: Bid Leveling

When comparing subcontractor quotes, use a bid leveling matrix to normalize exclusions. The lowest raw bid is rarely the best value.

Step 7: Submission

Submit the bid on time, on the correct forms, with all required documentation (bid bond, contractor license, insurance certificates).

Need help with your next bid? F&K Estimatings provides outsourced estimating and bid review services. We can help.