Estimating guide · construction
How to bid construction jobs as a general contractor
A general contractor's bid pulls dozens of trades into one number. Accuracy comes from a complete scope, good subcontractor coverage, and honest general conditions. Here's the process.
1. Decide whether to bid
Before investing hours, check the owner, the delivery method, the schedule, bonding requirements, and how many competitors are bidding. A good go/no-go decision saves more money than any takeoff.
2. Review the documents and organize scope
Read the drawings, specs, addenda, and bid form. Organize the work by CSI division so every scope has a home and nothing falls between trades.
3. Take off self-performed work
Measure the work you'll do with your own crews — concrete, framing, carpentry, or whatever you self-perform — and price material and labor from your own production history.
4. Solicit and level subcontractor bids
Invite subs early and send clear scope sheets. When bids arrive, level them: compare inclusions and exclusions line by line so you're comparing the same scope, not just the bottom numbers.
- Plug gaps where a sub excluded something others included
- Watch for scopes no sub has picked up
- Confirm bonding and insurance for each low bidder
5. Price general conditions
General conditions are time-based: superintendent, project manager, trailer, temporary utilities, toilets, dumpsters, cleanup, and safety. Price them against your actual schedule, not as a percentage.
6. Add insurance, bonds, contingency, and fee
Add builder's risk, liability insurance, bond premium, and a contingency sized to the design completeness and risk. Then apply your fee.
7. Write clear qualifications
List assumptions, exclusions, and alternates with the bid. Clear qualifications prevent disputes and change-order fights later.
Frequently asked questions
How do contractors calculate a bid?
Direct costs (self-performed work plus subcontracts) plus general conditions, insurance, bonds, contingency, and fee.
What is bid leveling?
Comparing subcontractor bids scope-for-scope, adjusting for inclusions and exclusions, so you choose the true low number.
What percentage should general conditions be?
It varies widely by job size and duration, which is why they should be priced from the schedule rather than as a fixed percentage.
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