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Construction Bid Proposal

A construction bid proposal is the basis on which many construction companies are hired to serve as the primary contractor on a project. Without a construction bid proposal, there would be no way to establish the overall cost of a project, which would throw the project and the contractor-client relationship into chaos.

In the traditional method of selecting a contractor, an architectural firm is hired by the property owner to develop a design for the building or project. Once that design is completed in approved by the client, the architect then puts the design out for construction contract bids. While the architect may want to know more information about a contractor than their price, the bottom line is the primary reason for the selection of most primary contractors. In some cases, the bid is the only thing that is presented and the lowest bid gets the project.

There are more than one way to judge a construction bid proposal, however, beyond the simple baseline price. With the design-bid construction method, construction bid proposals cover more than just the price to build a building. The design-build method combines the architect and contractor as a unified team, where they present not only their price to build the project, but their architectural design as well. A design-build construction bid proposal includes an all-inclusive price, including the cost of design and construction. Design-build supporters believe this method is not only more efficient, but leads to lower costs as well.

The construction manager at-risk (CM at-risk) method is another way a construction bid proposal is submitted. Under the CM at-risk method, the contractor and architect operate separately, but the contractor is involved in the process from the beginning and serves as a liaison for the client in dealing with the architect. CM at-risk bids are not blind, and the client can select whichever contractor he believes is best suited to handle the project. The contractor's bid comes in the form of the guaranteed maximum price, which states the cost of preconstruction services and the construction process itself will not go over a certain total.

There are a number of different ways to submit a construction bid proposal in today's construction industry, but each can be effective and meet the needs of the client.

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