We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Construction Bid?

Mary McMahon
By
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A construction bid is a proposal from a construction company which outlines its qualifications to perform a job and provides information about how much money will be required to complete the job and how long the job will take. Many construction projects start with a construction bid in which the project organizer attempts to find the best construction company for the job, providing an opportunity for various companies to bid for the job. The company with the best bid will be awarded the contract for the project.

Construction bids can take a number of forms. Sometimes the bid is for an entire project, as in the case of a general contractor which submits a bid to construct a housing development. In other cases, the bid is from a subcontractor who will take care of part of a project, such as a stonemason who bids on a contract to build garden walls in the housing development example.

When a project is opened for bidding, contractors can get basic information about the project specifications, including architectural drawings, site information, and so forth, from the administrators of the project. Using this information, contractors can construct a bid based on their experience and beliefs about cost and time frame. Bidding may be sealed, which means that all bids are submitted blind and reviewed together, or it may be more open in nature. Sealed bidding is designed to discourage corruption and favoritism, and to prevent contractors from underbidding each other.

Estimates in a construction bid can vary widely. A contractor who actively lies in a bid can be liable for legal penalties, but contractors can also underbid in good faith, underestimating rising materials prices, for example, or failing to anticipate problems which could delay the time frame of the job. This is why the construction bid for the lowest amount of money and the smallest possible time frame does not necessarily win the contract, as the person evaluating the bids may believe that another contractor has a more realistic image of the project, or more experience.

Specific formatting rules must be followed to submit a construction bid in many regions of the world, and information about how the bid should be formatted and submitted is usually available when organizations put out requests for construction bids. Busy construction companies may have a specialist on staff who focuses on writing bids, maintaining community contacts, and keeping up on potential projects of interest.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.