How To Bid Commercial Construction Jobs

How to Bid Commercial Construction Jobs

In this blog, I’m going to walk you through the process of bidding on commercial construction projects. Whether you’re a general contractor bidding for a project from a building owner or a subcontractor bidding for a trade-specific scope, this guide will help you understand the key steps and strategies to improve your chances of success.

Two Ways to Bid:

When it comes to commercial construction bidding, there are two primary approaches:

1. General Contractor (GC) Bidding – The GC submits a bid to the project owner to be awarded the contract.
2. Subcontractor Bidding – Subcontractors bid to the GC for specific trade work within the project.

Let’s go through the high-level process of each.

The Proposal Process:

Bidding on a commercial construction project is an intense process that involves careful planning and execution. It typically begins with an RFP (Request for Proposal) or RFQ (Request for Qualifications), which may focus more on pricing or qualifications depending on the project type.

Written Proposal:

The written proposal is a critical component of the bidding process. It includes:

• A clear, compelling message that communicates the project approach.
• Well-structured responses to highlight price, qualifications, and unique value.
• Contributions from subject matter experts to ensure accuracy.

To make a strong impact, follow the hero’s journey storytelling technique—this makes your proposal engaging and memorable.

The Interview:

Once shortlisted, bidders move to the interview stage. This is where you need to:

• Speak in concise soundbites and use strong visuals to support your points.
• Show how you will solve the owner’s challenges and deliver value.
• Present with confidence, high energy, and without fear or nervousness.

Your ability to connect with the selection committee and communicate effectively will significantly impact your chances of winning the bid.

Understanding Subcontractor Bidding:

Subcontractors typically receive a bid package or instruction to bidders from the GC. Some subcontractors may also be required to go through an interview process.

Key factors GCs look for in subcontractors:

• Right team and experience.
• Competitive pricing and schedule.
• Ability to deliver on commitments.

Subcontractors must demonstrate their capability and reliability to be awarded work on a project.

Steps for Bidding:

1. Understand Project Requirements:

Before bidding, take a deep dive into the project scope:

• Study the plans, specifications, and unique project elements.
• Look for details such as overhangs, ceiling heights, formwork requirements, and site constraints.
• Quantify all aspects of the project to prepare an accurate bid.

2. Conduct a Site Visit:

A physical site visit can provide crucial insights:

• Check soil conditions, access points, and utility relocation needs.
• Identify potential challenges that could affect pricing and scheduling.
• Consider doing a preliminary layout to visualize how the building fits on the lot.

3. Estimate Costs:

Accurate cost estimation is essential and includes:

• Material, labor, and equipment costs.
• General conditions (insurance, bonds, staff costs).
• General requirements (logistics, site setup).
• Subcontractor quotes and contingencies.

Having multiple sets of eyes on estimates ensures accuracy and reduces risk.

4. Develop a Timeline Proposal:

A well-structured bid includes:

• Cost breakdowns.
• Project schedule (macro-level plan).
• Zone maps and logistics plans.

A clear timeline helps owners and GCs understand your execution strategy.

5. Submit Your Bid:

Bid submission varies depending on the contract type:

• Some GCs submit an initial cost proposal with their written submission and interview.
• Others enter a CM-at-risk (Construction Manager at Risk) phase, where a Guaranteed Maximum Price (GMP) is developed over time.
• Subcontractors may provide pricing at different project stages, from conceptual to final design.

Understanding when and how to price the project is key to a successful bid strategy.

6. Post-Bid Follow-up:

After submitting your bid:

• Follow up to see if you were awarded the project.
• Gather lessons learned if unsuccessful.
• If awarded, immediately begin contract reviews, procurement planning, and project preparation.

Avoid scope gaps—ensure all project elements are covered in your bid and contract.

Pro Tips for a Winning Bid:

1. Ensure accurate subcontractor scopes: Use control estimates to compare pricing and validate bid accuracy.
2. Be realistic with time frames: Bidding takes time; plan accordingly to avoid rushed or incomplete submissions.
3. Include buffers and contingencies:  Have adequate buyout, contractor, and owner contingencies to protect against unforeseen costs.
4. Stand out by adding value: Owners and GCs want reliability, problem-solving, and proactive planning—not just the lowest bid.

Final Thoughts:

Bidding on commercial construction projects can be a precise, exciting, and rewarding process when approached strategically. Focus on value, clarity, and accuracy in your bids, and work as a team to ensure a competitive edge.