What is bid leveling?

Bid leveling is a process that helps ensure that all bidders are bidding on the same package of work for a construction project. It allows customers to make a direct comparison of bids. Leveling often involves the owner asking questions and requesting clarifications of a proposal, and even revising the proposal to help the owner match what others are including.

Project managers or estimators often use a leveling form or bid tabulation template to assess multiple bids for the same scope of work. The leveling sheet lists the major components of the project, such as the scope of work shown in the drawings and specifications. Estimators go through each builder’s bid and mark the form accordingly to show whether a component was included in their prices.

If a component is missing from a bid, the estimator then contacts them to get the required pricing. The form, also known as a bid tabulation template, provides a visual representation of the scope of work in each contractor’s bid, making it easier to select the contractor with the most comprehensive, best bid.

The bid leveling process is often done by a general contractor when assessing subcontractor bids and by a project owner when choosing a general contractor.

After the bidding process is done, the lowest actual bidder is determined. Sometimes the apparent high bidder actually turns out to be the lowest bidder after the bid leveling process. This may be because an initial low bidder missed or excluded a portion of the work.

How to level a construction bid

The process for leveling construction bids includes ensuring that project requirements are met, identifying similarities and differences between bids, checking materials, and ensuring that the correct plans are being used to create the best bid.

1. Review project requirements

The first step in the bid leveling process is to review the general project requirements and ensure that all bids meet them. Project requirements may include bonding, contractor licensing, or the ability to provide services for public works projects.

Also for better comparison, the process should ensure that the scope of work for the project has been correctly identified by the contractors. For example, if a project requires precast concrete and a contractor only bid on reinforced concrete, the bid does not meet the requirements for that project and should be disregarded or the contractor should be given a chance to include that work in their bid. Make a list on a bid tabulation form of the components of the project for each trade so you can confirm whether each component is included in the bids you received.

2. Identify similarities and differences

Next, you’ll compare bids for similar scopes of work. Look at the detailed work description on each contractors bid, if there is one, to determine if the contractor has correctly identified the work to be performed. Specifically, look at their inclusions and exclusions for clues in identifying the scope they are bidding on. For example, two concrete subcontractors bid on a building foundation. One includes rebar and installation, while the other excludes rebar. This difference should be noted.

After noting the differences between bids, contact the bidders and ask them to clarify or revise their proposal to meet the project requirements and/or help you compare pricing. In the example above you could ask the contractor who included rebar to exclude it or ask the one who excluded it to provide a price for including it. The goal is to get the same work covered by each bid.

3. Optimize the materials list

Check all bids to ensure that the required materials, permits, or other charges are included in the price. Sometimes subcontractors make pricing assumptions when the project specifications aren’t clear or complete. For example, a flooring contractor may include an allowance for carpet. An allowance is a price set for budgeting purposes. If the actual product selected goes over the amount of the allowance, the customer is responsible for paying the difference. Compare pricing assumptions between contractors to ensure that everyone is using the same metric. This is especially important during inflationary periods when material prices frequently change.

4. Ensure the correct plans are used

Finally, you’ll want to compare bids to ensure that everyone bid using the latest plans and addenda. If a contractor noted that they are basing their price off a previous revision, or they aren’t recognizing a bid addendum, contact the contractor and ask them to revise the price to include the latest information.

Benefits of bid leveling

Bid leveling allows customers and general contractors to ensure that they are making an equal comparison of pricing for similar work. No two contractors bid the same project the same way. So, in order to make a judgment on which is the better price, the bids must be leveled. When contractors bid the same work, selecting the low bidder is easier.

By providing a thorough review of all bids, bid leveling improves bid accuracy. When a contractor or customer compares bids from multiple builders, the diligence often catches errors or omissions in the bid. The subcontractor or contractor then has the opportunity to revise the bid accordingly. This helps ensure that the customer is getting the right price for the work.

Projects that use bid leveling can see overall cost savings of 8-10%.

Summary

Bid leveling helps project owners and general contractors choose the best builders and pricing for their project. It ensures that bids are representing the same scope of work and money is not wasted on builders working off incomplete specifications. To level a bid, review the project requirements, identify similarities and differences, check materials, and ensure that the correct plans are being used. From there the customer or contractor can make the best choice for their project.

Buildxact can help contractors and subcontractors improve the accuracy of their bids while also offering online tools for construction management. Register here for a 14-day trial or book a demo to see how Buildxact can help your company.

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The process starts with an invitation to tender (ITT) a construction project [may also be called a request for proposal (RFP), invitation to bid (ITB), or request for qualifications (RFQ)]. The tender document includes all the information needed to provide pricing on the proposed scope of work. Based on the tender documents, contractors provide pricing to the owner. The owner or other parties involved reviews the tenders and selects the best one that fits their needs.

There are several types of tender processes that may be used to select a contractor: open, selective, negotiated, serial, framework, single-stage, and two-stage tendering.

Open tendering

During an open tendering process, anyone may submit a tender in response to the owner’s invitation. The opportunity is advertised where contractors can see it, and all interested contractors are invited to submit a bid. Some invitations, for example, those that involve large projects, may require that contractors are prequalified before submitting an open tender.

Open tendering is the most competitive tender option, allowing anyone who is interested in an opportunity to bid on it. It allows new and emerging contractors the opportunity to win work, and encourages competition.

Selective tendering

Selective tendering involves the owner choosing a short list of contractors to invite to the tender. In this case, only those invited may submit a tender offer. This type of tender works best with specialty or complex projects, where the owner wants to limit the response to only that particular class of construction companies they deem suitable for the work. An unknown contractor is not going to participate as they might in an open tendering procedure.

Selective tendering reduces what can be wasted effort from seeing proposals from too many contractors and helps ensure only the competent contractors participate. However, it excludes new and small companies who may be competent contractors, and reduces the overall number of competitive bids.

Negotiated tendering

In negotiated tendering only one supplier or contractor is selected to submit a tender, and the owner negotiates with that supplier or contractor to reach an agreement. This version is used for highly specialized contracts or the extension of an existing contract. This tendering process significantly reduces the cost, as there is only one proposal to review.

However, it discourages competition among contractors, which can lead to higher prices and a more challenging negotiation process.

Serial tendering

In a serial tendering opportunity, a particular contractor provides a set of typical values for a set scope of work over a series of similar projects.

The owner can select from the list of work to determine exactly what will be performed under the contract. Contractor prices may be lower with the expectation of ongoing work, less need for future tenders, and the establishment of a long term business relationship.

Framework tendering

Framework tendering involves the selection of a contractor for on-call work over a period of time. The contractor provides a schedule of rates and a breakdown of resources and overhead charges. This type of tender reduces costs and allows owners to get a quick response to repairs, since the contract is already signed and completed.

Single stage and two-stage tendering

In a single stage tender, the tender documents are fully designed before an invitation is sent out. One contract is awarded for the entire project.

In a two-stage tendering, the initial design hasn’t been completed yet. A contractor is selected to take part in two distinct stages.

They may propose their initial fee for design or may be chosen because of their qualifications. Once the design documents are complete, another tender is submitted for the construction of the project, and a contract is drawn up for that portion of the work.

The tender process

Most construction tendering in the engineering and construction industry goes through this process: invitation, clarification, submission, settlement, and contract execution.

Invitation to tender

The owner provides tender offers with information to potential suppliers and contractors on the work to be performed. These tender request documents may include:

·        Letter of invitation to tender

·        Preliminary information (including pre-construction information and site waste management plan)

·        Form of contract, contract conditions andamendments

·        Employer’s information requirements if BIM is being used

·        Tender pricing document (or contract sum analysis on design and build projects)

·        Drawing schedule

·        Design drawings, and perhaps an existing building information model

·        Specifications

Clarification

Prospective tenderers submit questions and clarifications to the tender notice to help them understand the work. Responses are sent to all prospective bidders and changes may be made to the tender documentation. The bid deadline may be extended to give bidders time to review the information and get the necessary pricing.

Submission

Contractors submit competitive bids to the owner with pricing and information about how each contractor will complete the work. Documents submitted with the tender may include:

·        Tender return slip, with details of the contract, including information such as return address and tender checklist

·        Completed tender pricing document (or contract sum analysis on design and build projects)

·        Schedules of rates

·        An initial construction phase plan

·        Design proposals or method statements that have been requested

·        Procedures to be adopted, such as procurement procedures and cost management procedures

·        Demonstration of capability, for example design capability, systems used, etc.

·        BIM execution plan – if building information modeling is being used

·        Key project personnel, which may require submission of CVs or resumes

·        Management organization

·        Plant and labor resources and availability

·        Prior experience

·        References

Variant bids

Contractors may submit alternatives or noncompliant proposals as an option for the owner. These options are usually less expensive than that proposed in the tender documents. Variant bids are usually provided only if requested and accompanied by a compliant proposal.

Qualified tenders

The contractor may submit a proposal with specific reservations or limited liabilities if they cannot or will not provide the services specified in the proposal documents.

Settlement

After reviewing the submitted tenders, the owner selects the preferred tenderer to enter into negotiations with by making a formal offer. Through this process, the tender documents and proposal may be revised to meet the conditions of the agreement.

Contract execution

The final contract is prepared, reviewed by both parties, and signed.

How to win more construction work through construction management software

In most tendering opportunities in the construction industry, suppliers and contractors are competing based on experience and price. Anything contractors can do to reduce their project costs will make their bids more competitive. Construction management software keeps teams updated with the latest construction documents and information they need to keep the job moving, helping to prevent mistakes and costly rework.

Software can also significantly improve your response time because material takeoffs become simple and easy to perform. This also boots the accuracy of your competitive tender. Instead of relying on legacy solutions, it’s time to modernize your estimating process so you can bid more projects and get more work. Buildxact helps contractors just like yours get more work every day.

Ready to see for yourself?

Give Buildxact a try with a 14-day free trial, or have one of our team take you through what Buildxact can do for your business with a one-on-one demo.

The post What is tendering in construction appeared first on Buildxact AU.

We’re super excited to collaborate with you and share our exciting new features, helping you save time and win more jobs. Let’s kick it off with the latest releases that will help give you more time to do the things you love most! 

Organize your week in a dash

Seeing what tasks are coming up for the team is crucial for managing any job. View and allocate tasks and resources across different jobs via the Dashboard. Choose between job or resource views, select a time period and even email or SMS reminders. Everything you need to manage your business in a dash. 

Find out more about improvements to our dashboard

Accelerate quote approvals

Buildxact can help your business move from quote to contract quicker. Chose how you want homeowners to view your quote – via email or Client Portal. Better yet, give them the option to digitally accept the quote then and there. So even if you can’t get out to see the customer, the job can still progress with no hold-ups.  

Watch Dan demonstrate how to share a quote

Wanna get in on the latest features? 

The team here at Buildxact are builders too! When we create new features, we like to get feedback on our build. That’s where you can get involved! Buildxact Labs gives you the opportunity to try new features. They are concepts, but if there’s a feature you’re super keen to get your hands on, or you are a Buildxact fan who wants to have a say in the development process, Buildxact Labs is for you.

See what’s cooking in the lab and how to get access

Life’s better when you’re connected

Builders are halving their quoting time with integrated supplier price lists* (Buildxact Builder Research Oct 2021). With less time spent on emails and phone calls, they’re able to spend more time building customer relationships or spending time with their family. 

The latest suppliers to join Buildxact:

• Concrete World Industries (Central West, NSW, Australia)  
• Bretts Timber and Hardware (Brisbane, QLD, Australia)  
• Tamworth Building Supplies (New England and North West, NSW, Australia) 
• Australian Builders Network (Australia)  
• Builders World (Australia) 
• ITM (New Zealand)  
• Central Valley Lumber (California, America)  
• KBC BMR (Ontario, Canada) 

*Available to Pro and Teams subscribers.  

Find out how to connect with your suppliers

Respond to RFQs in Buildxact

This year will see a lot of enhancements to RFQ’s. Suppliers and contractors can now respond to RFQ requests within Buildxact. This gives suppliers and contractors the benefit of using Buildxact’s features to streamline the quoting process. 

How to respond to a quote request

Help when you need it

We’ve updated Buildxact to show helpful information, videos and FAQ article links on each feature screen to help guide you along. No need to search for help, it’s all right there on the platform when you need it.  

Getting help in Buildxact

Suppliers digitize the supply chain with Epicor BisTrack integration (suppliers only)

As the market continues to face supply issues, pricing continues to fluctuate with 74% suppliers reporting price lists are being updated weekly or monthly (Farnsworth research Dec 2021). Suppliers can eliminate double handling and update price plans direct from their ERP into Buildxact. Connect with market leading ERP solution, Epicor BisTrack, to automate product information from manufacturer to supplier to builder for greater efficiency and reduced transactional costs.  

Find out how you can connect with Epicor BisTrack

The post April product news: New features to streamline admin appeared first on Buildxact AU.

First impressions can be make or break for winning the job, so make it count with detailed and professional quotes with Buildxact. You’ll be able to quote 5x faster using Buildxact’s quote builder. Send a beautiful branded and detailed quote, helping you stand out amongst the rest. Add colours and images of selections, show allowances, terms and conditions, and provide a final price all in one quality quote.

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Take a look at Buildxact – easy-to-use construction management software uniquely designed for residential builders. From first takeoff to final invoice, Buildxact manages all your construction needs in one place. Complete takeoffs up to 80% faster and quote 5x times more quickly – helping take your residential construction business to the next level.

The post A quick look at Buildxact appeared first on Buildxact AU.

“Buildxact will save you hours” – Just one of the many great things builders are saying about Buildxact. Buildxact is an easy-to-use construction management software for residential builders.

The post What builders are saying about Buildxact appeared first on Buildxact AU.

Zounis Constructions uses Buildxact’s cloud estimating and job management software to provide customers with professional quotes and run jobs like clockwork. Phillip Ouzounis talks about his experience comparing different software tools and why he settled on Buildxact. More time with the family, more time for customers.

The post Customer story – Zounis Constructions appeared first on Buildxact AU.

Successful husband & wife team

Lauren and her husband Lonnie started their construction business L O’Grady Constructions in 2008, collectively creating architecturally designed homes, renovations and extensions. While Lonnie manages the builds, Lauren makes sure that all projects are run efficiently. 

“I’m a busy mum. I run a very busy household and a very busy business”, says Lauren. As someone accustomed to switching between school drop offs and a jam-packed inbox, there’s nothing more precious to Lauren than time spent with her family. Naturally, she was thrilled when she discovered a way to cut her administration in half, giving her more hours in the day to do the important things in life.

The proof is in the pudding – L O’Grady Constructions clients say that working with the husband and wife team is a pleasurable and positive experience, creating quality homes with minimal fuss.

Work less hours and win more work

Gone are the days of blowing up plans and using a scaled ruler to complete complex and time-consuming takeoffs.  Since being introduced to Buildxact, Lauren’s takeoff times have reduced significantly. “We basically sit at the computer and all the dimensions are given to us”, she says. 
 
“Using Buildxact has basically allowed us to work less hours on quotes.”  They have found that by having more time to produce more quotes they win more jobs. A good work-life balance is essential to perform at your best, yet for many construction businesses, takeoffs, quoting, invoicing and general admin is completed outside work hours. 

Keeping everyone on the same page

Based in Gisborne in regional Victoria, and with building sites across Melbourne, it’s crucial that they are able to share plans, schedules and project information with their registered builders and trades without lengthy trips to and from building sites, or hours on the phone.

Buildxact allows L O’Grady Constructions and its sub-contractors to raise and receive purchase orders directly on their devices to keep the build running smoothly.  Lauren finds that this reduces incorrect or lost deliveries, site delays and time spent chasing down suppliers. Because she can track her budget as the job unfolds, she can address issues quickly and avoid cost overruns.

Keeping clients happy

Both Lonnie and Lauren love the fact that they can keep their work in one system that syncs all aspects of their projects. From initial quote through to invoice, Buildxact gives them a real time, holistic view of their jobs. L O’ Grady Constructions’ clients praise them for their ability to make quick decisions, as well as communicate and resolve the hitches that are inevitable on every build site. Better still, they are known for keeping to timelines and keeping their clients happy.

Finishing the day with family

Once she finishes her day at the office, Lauren picks up the kids, cooks dinner, etc, while Lonnie wraps up at the building site.  And since using Buildxact they now have their nights back to do the things they love – not admin.

The post L O’Grady Constructions delivers a quality work-life balance with Buildxact appeared first on Buildxact AU.

Before you can decide if construction software is right for your business, you need to understand what the software does.

What is construction management software?

Construction software solutions are project management tools that streamline the construction processes. It handles everything from evaluating the project’s scope, creating construction quotes and bids, planning and assigning tasks, tracking business expenses, creating purchase orders and invoices, and making payments. It also includes features that aid customer communication, document management, cloud storage and more. 

Construction management software has everything you need to get your construction projects finished on time and on budget, and it has the tools to win you more jobs and take control of your business.

Who should be using construction management software?

Builders, architects, project managers, contractors, building owners or stakeholders, project team members, construction professionals and anyone else that is involved in managing projects should be using project management software. Each person may have a different use for the construction software: construction managers need to track progress, project team members need to communicate, and stakeholders want to know things are running smoothly and on time. By using construction management software everyone involved can find out real-time job costing information, communicate effectively, stay on track and complete projects. It is a single collaborative platform f that offers complete transparency.

Benefits of construction management software

There are many benefits of using a construction management software solution, other than saving time and building your reputation as a builder who completes jobs on time and within budget. Below, we will go into a few of the benefits for small business and construction firms in more detail:

Simplifies the management process

If you are a custom home builder trying to complete a project while bidding for others, or you’re a construction project manager and you are juggling a lot of people and multiple projects, then simplifying the management processes is essential. Having complete transparency helps with stress levels and keeps you on top of your construction projects.

Tracks expenses and budgets

A critical aspect of completing a successful construction project is cost control and budget management. If you don’t know whether your actual costs are tracking with the estimated costs, then you won’t know when problems arise. Getting this information in real-time can save time and money, allowing quicker decisions. Construction project management software that integrates with your construction accounting software will keep your project budget on track, quicker and easier.

Remote access

Good construction management software, like Buildxact, allows you more time away from the desk by providing remote access to your construction software solution. All you need is a network connection and a laptop, tablet or a smartphone and you can get out there and do more site management, instead of spending time in the office trying to keep everything monitored from behind a desk. Your team can also access all of the project’s details whether they are onsite or in the office.

Having construction management software that you can access from anywhere makes your projects run smoother. Perhaps, you are out at the construction site, and you get a call that a piece of essential equipment will be arriving two days late, straight from your mobile project management software you could assess who and what part of the process is going to be affected all from your browser. You could then rearrange things, contact all the relevant people and avoid wasted time and money.

Maybe you’re a small builder and you’ve taken the day off to see your child win an award at school, but there’s an issue onsite. Two contractors aren’t on the same page and are disagreeing on how the design of the house should be. You’ve tried to handle it over the phone, but they’re not understanding. So, your only option is to go down there and sort it out. Making your child unhappy at being put last again.

However, if you have cloud-based construction management software, the two contractors could access the relevant information right from their smartphones or tablets. They could solve the issue while you spend, well-earned, time with your family. You would stay informed of the project’s current status without being there in person, making everyone happy.

Easier collaboration and sharing

Using construction management software makes collaborating with your project manager, workers and contractors much easier. They can use the team calendar to see when they have been assigned to a job, when it should be completed by, and with whom they need to work. If issues come up, they can be quickly dealt with and those impacted can be communicated to within the one forum. When everything is kept together, information or people are not left out of the loop. It is the same with sharing job information, keeping it all together with the right software means no more missed emails or messages. Alerts can be set up to inform the relevant people as change requests occur, avoiding delays and business losses.

Document control

In any construction project, a great deal of construction documentation is produced and must be stored. Historically, everything was printed on reams of paper (extremely un-eco friendly) then stored in the office in a row of filing cabinets. However, now we can store all the documents virtually, in the cloud, instead of taking up space in the office (or your dining room at home). It also means wherever you are, you can access any documentation or information, allowing for more efficient business processes. No running back to the office to look things up or phoning someone at the office, explaining what you’re after and waiting for them to find it. All of it wasting your precious time. With construction software you can access everything from your phone or tablet.

The other advantage to management software document control is that you can have templates uploaded that standardize all your business’ construction documents. They make sure your construction company and your team always look like the construction industry professionals that you are.

Integrations with other software

Again, it’s all about convenience. By integrating with other software like your construction accounting software (Quickbooks, Xero, etc.), then two jobs can be achieved at the same time. Allowing much more efficient management of your business income and expenses.

Consistent estimating

Nothing looks less professional or unreliable than estimates that are all over the place or bidding for jobs that your business processes can’t achieve. It looks more like guess and hope than actual detailed estimating, and it will lose you more jobs every time. Construction management software looks at the scope of the project and its feasibility. It also uses historical data from your previous jobs to estimate the time the project will take and the project costs. You will know early on if the project suits your business model or not.

Accurate quotes and estimating

The crux of all construction projects is making a profit and keeping your construction company customers happy. To do that you must provide accurate project quotes and costings. Your construction management software can perform a building materials quantity takeoff and estimate the construction costs, including direct and indirect costs in about 80% less time than the conventional way. By using software you can access an updated database of material costs from your pro dealer or supplier, giving you accurate prices. Imagine how much time that saves alone.

Tracks progress

Another benefit of our construction management software solution is the ability to track your construction projects in real-time. This allows you to notice issues before they happen or to fix them as quickly as possible when they do occur, helping you to avoid costly delays. Making sure timeframes are met is crucial to successful construction project completion and to keep your customers happy.

 Simplifies and quickens reporting

Creating a construction managers’ report has never been simpler with construction project management software. You can use a standard template or create your own template for your construction team to use. Not only does construction software allow all the relevant information and reports to be kept all in one place, but it prevents the use of numerous email threads that get lost or deleted. Quicker reporting means you can address problems faster and avoid delays. A simplified report means anyone can understand them without having to have construction industry experience, meaning even a layperson can find and understand the information they are looking at in the reports.

It’s all these wonderful benefits of using construction management software that makes it so invaluable for all construction firms, big or small. Don’t just imagine the free time and less stress, put construction management software to work and enjoy more family moments.

Construction management software helps business growth

There are a lot of costs associated with starting up your own business and maybe you think why add more costs when you can achieve all the managerial elements the software can do, old school – by hand, using spreadsheets and a calculator. It’s true, you can, but you will most likely lose more jobs. Doing the process by hand is slow, inaccurate and subject to human error. What you really want is to save time, be accurate and win more building projects.

Using construction project management software will benefit your construction company by helping you decide which jobs are not feasible for you, creating accurate and professional-looking project bids that win, building your reputation as an honest reliable construction firm and increasing your customer satisfaction. You’ll also find yourself ahead of the competition.

Those who run small construction companies often wear many hats: boss, project management, negotiator, contract creator, quote preparer, parent and partner. All of them take time and energy, so anything that can cut the time down by up to 80% has got to be worth looking into. If it helps you grow your construction business, yet gives you more spare time while doing it, then you’ve got nothing to lose with construction project management software.

Choosing the right construction management software

There are plenty of construction management software solutions on the market these days so how do you know which one is right for you? 

• Firstly, unless you are an IT specialist, then the program must be easy-to-use and easy-to-understand. There is no point in spending money on something you can’t understand how to use or that takes weeks or months to master. So, the construction software providers must offer follow-up customer support for easy assistance.
• Secondly, it should be cloud-based so you can have remote access and perform document management wherever you are. 
• The software should allow other users to log in and access information, communicate or check their job schedule. Unless you are the only one in your construction team, then others need access, too.
• Finally, the cost has to be reasonable, and the construction management software you choose must provide benefits for you and your construction business. If the software solution you choose doesn’t save you time and energy, then you haven’t chosen the right construction management software.

The easiest way to get started using construction management software is to start a 14-day free trial or book a demo with Buildxact. Our construction management and estimating software will make material takeoffs 80% quicker, bids look more professional and build your reputation as a builder who completes jobs, and makes their customers happy. 

Take back your time, control and monitor your projects, communicate better, have greater transparency and grow your business with us. Book your demo or start your free trial today.

The post The key benefits of construction management software appeared first on Buildxact AU.

Here, we will look at why they are important, what they should include, and how to create a construction proposal that wins you bids.

What is a construction proposal?

A good construction proposal can be your showcase, your protection, a legal contract, and a great marketing and sales tool for your construction company.

It is much more detailed than a project bid and can help avoid conflict later on during the construction. Imagine if the project owner thought your part of the project was to include work you don’t perform–then you could easily refer to the construction proposal where you would show exactly what you have been contracted to do and where your obligations lie.

The construction proposal process will help you decide a project’s feasibility and whether the client’s expectations are realistic and achievable. If they aren’t, your proposal allows you to offer the client a realistic alternative that outlines exactly why your business proposal would work better.

Just by producing a good construction proposal, you can show proposed clients how well you know their construction project while also promoting your business, skills and reputation.

The construction proposal also includes task scheduling to monitor the build’s progress throughout the construction process. This ensures the job stays on track.

We recommend that you begin by looking at free construction proposal templates. Starting with a simple construction proposal template and then comparing that to a top-quality proposal template. Whatever construction proposal template you use, you must ensure that your proposals are presented in a professional way.

Key items to include in a construction proposal

Your construction proposal template should include:

•       The scope of work;
•       An estimate of the project cost;
•       The client’s information;
•       A payment schedule;
•       The start and finish dates;
•       What happens if there are hidden defects or unforeseeable conditions;
•       A work schedule;
•       What happens if there are any changes or extras needed during the build;
•       And, your warranty.

However, these are not the only things you need to consider. The construction proposal must be accurate, clear and easy-to-read with a good layout and personalized to your business. Importantly, it needs to be produced in a timely manner. There is no point in it if you complete it days after the clients have closed the bidding. 

Detailed Scope of Work

We recommend you spend a lot of time on this section, making it as detailed as possible, listing the services and tasks you provide. As mentioned, you don’t want to get stuck doing work you didn’t agree to because your scope of work wasn’t detailed enough.

Perhaps you are a contractor or renovator who specializes in cabinet making and carpentry, and suppose your client wants to have their kitchen and bathroom remodeled. You are happy to install the cabinets and cupboards, but you do not do tiling. Your construction proposal should detail the work you will do. If you use a sub-contractor to do the tiling, their information and estimated cost should be included. Making it clear who will be doing the tiling. 

Cost Estimate

Your cost estimate should also be very detailed, leaving nothing out. It needs to include all direct costs like labor (including sub-contractors), equipment, the quantity takeoff, which counts all the materials necessary to complete the build, plus an amount for allowances. You must also include all your indirect costs, like rent on your office and running costs.

Owner information

For it to be a legally binding contract, your construction proposal must include all the parties involved and your client’s details; spelled correctly with no mistakes, and they must sign it.

The construction proposal also details what their obligations and liabilities are, as well as any information or resources they are required to provide. Once again, the construction bid proposal is a safeguard for you and your clients.

Payment schedule

This section is very important for your company’s cash flow. It sets out the terms and conditions of payment. There may be local construction industry laws and regulations that may dictate some of the conditions, but this section can safeguard you against clients refusing to pay because they have a dispute. Here, you can layout whether the client makes payments as you reach milestones or that the client makes them on certain dates. Also, you can include when payments for extras or unforeseen issues are to be paid.

Start and finish dates

Adding the start and finish date of the proposed project is also very necessary because the costs that you establish often are based on the job going ahead at a certain time. If the dates alter, then it is quite possible that the price of materials and labor may change, too. You should also include the date the notice to go-ahead with the project was given to all the contractors.

You should also note when milestones are to be achieved and who is liable for delays, depending on the cause of the delay–more safeguarding for you and your clients.

Now, there are several mistakes that builders make when estimating and making a construction bid proposal: 

Hidden defects and unforeseeable conditions

Often forgotten is the need to define who is liable for the costs of hidden defects and unforeseeable conditions.

These hidden issues may range from something common like mold behind the walls, to something less common like underground boulders that weren’t expected. In these cases, there will be extra costs associated with the testing, handling, cleanup, containment, disposal or destruction of the unforeseen issue. 

By adding this section to your construction proposals, you can save yourself a lot of time, money and conflict.

Schedule

In the construction project schedule, you must include the amount of time it takes to get permits and approvals, the order of work, and the order of completion. When creating your project timeline don’t forget to consider possible delays from weather,  delivery services and other factors outside your direct control.

Changes and extras

At the time of writing your proposal, there won’t be any changes or extras to apply. So, this is where you detail what happens and who is liable for anything that may come up after the build starts.

Warranty

Another safeguard of a construction proposal is the warranty section. Here you detail what work you are liable to fix and under what circumstances, and it also details what you are not liable for– normal wear and tear, for example.

Tips for creating a winning bid

There are no construction proposal templates that can guarantee that your bid will be the winning one every time. However, when you write proposals that are clear, accurate, personalized, include all the details necessary, and showcase your business, then you are on your way to landing your next project. 

Don’t forget to follow up on your budget proposal or your marketing proposals to bring in more potential clients. Make proposal follow-up part of your sales process.

Give your proposals a personalized touch

The difference between a good construction proposal template and a great proposal is its professional design. It could be as simple as finding a free construction proposal template, adding your company logo, changing fonts to reflect your business style and adding a cover letter. 

Pay attention to what your clients need, make the review of your proposal easy and make sure the clients read clear instructions and information throughout the proposals you create.

Focus on the details

It is super important to focus on the details in construction proposals. Make sure your quantity takeoffs are accurate, that they include everything, even descriptions, pictures or graphs. Give your clients clear and understandable information that they can rely on.

Use a construction proposal template to make sure you don’t miss anything.

Ensure your data is accurate

Make sure everything you include is accurate, any mistakes can damage your reputation and lose you bids. Your client wants to trust you, but errors make them wary.

Example of a construction proposal

Why you should use estimating software during the proposal process

As we pointed out earlier, getting your proposals done in a timely manner is crucial to winning project bids. Using cloud-based estimating software will help you get the job done about 80% quicker than doing it by hand and when deadlines are present, speed is a must.

The specific project proposal can then be stored with the rest of the project’s documentation, where it can be accessed quickly and from anywhere that has an internet connection. You can also store your construction proposal templates online for easy access, ready for your next construction project proposal.

When you win more bids, complete projects on time and you remain within the budget, then your profits will increase, and making money while saving time is what it is all about.

Why not save time, build your reputation, your business and your profit with us? Book a demo of our Buildxact estimating and project management software or start your 14-day free trial today. Your next project and your potential client could be one proposal away.

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