Construction Bidding Process: Everything You Need to Know

When a buyer starts any construction project, they use the bidding process to discover the best contractor. First, they share their project details and then the contractor shares their offer. 

A great example is Hoover Dam; it was built through competitive bidding. That project justified this process in how bidding can lead to reliable work at the right cost. 

In this blog, we will understand how the construction bidding process works, its types, and how it can prove effective to you. 

What is the Construction Bidding Process  

This process allows you to compare multiple contractors by reviewing their cost values in detail and experience. This organized process makes easier to discover the ideal contractor who offers the best quality at a fair price. 

Types of Construction Bids  

If you are ready to start a project, the next step is choosing the right bidding method. Whether it’s open, selective, or negotiated, your approach makes the quality, speed, and overall value you get from contractors. There are many types of bidding methods. Let’s discuss the types: 

• Open Bidding: Open Bidding let you access to wide range of contractors. It’s perfect for public projects where competition and transparency matters. The more bids you get, the more likely you receive the fair amount. 

• Negotiated Bidding: If you need a trusted partner, or are under strict deadlines, negotiation bidding can save you from this. You can select a contractor and finalize terms. It saves time and avoids delays.
   

• Serial Bidding: For projects that happen again and again, serial bidding lets you work with the same contractor under fixed terms. This saves time, keeps things consistent, and avoids the need to start a new bidding process each time.
   

• Selective Bidding: Selective bidding can be beneficial when quality and quantity are priority. You can choose trusted and pre-qualified contractors. This helps you save time and provides you with experienced professionals you already trust.
   

Steps in the Construction Bidding Process  

Getting a project through bidding is not only for the lowest price, but also a proper process that requires planning and progression. We will discuss here the steps: 

Bid solicitation: As buyers, we kick off the bidding process by clearly outlining what we need, scope, timelines, budget, and expectations. We create a formal RFP, RFQ, or ITB and share it with pre-qualified vendors or post it publicly to attract strong contenders. 

Bid submission: Vendors respond with their proposals. During this phase, we review each submission for pricing, quality, and compliance with our requirements. If any confusion arises, we clarify it early to ensure all bids are fair and informed. 

Bid selection: Once we receive all bids, we evaluate them carefully, not just by cost, but by overall value. We consider delivery timelines, vendor experience, and after-sales support to choose the most reliable and cost-effective partner. 

Contract formation: After selecting a vendor, we draw up a contract that covers deliverables, timelines, payment terms, and penalties. Our procurement or legal teams review it to make sure everything aligns with policy and protects our interests. 

Project delivery: As work begins, we track progress to ensure everything stays on schedule and meets the agreed standards. We may conduct site visits or request progress reports. Once everything’s complete and approved, we process payment as agreed. 

Mistakes to Avoid in the Bidding Process  

Most contractors win lower bids than expected, often due to avoidable mistakes. Here’s what to avoid: 

1. Focus on the lowest bid: You should not focus only on the lowest bid, it can lead you to poor quality, over-costing, delays and dissatisfaction later. 
2. Contractor credibility ignorance: Before choosing the contractor assure their credibility. Do verify the contractor’s track record, licenses, safety records, and experience with similar projects. 
3. Not checking past works: You must check the past works, not talking to past clients or seeing finished projects can make you miss problems like bad work or unprofessional behavior. 
4. Incomplete bid document: If you’re not clear about what you want, contractors might misunderstand the job, give wrong bids, and cause problems later. 

Best Practices of Construction Bidding process 

• Clear About Project: Give accurate details so contractors know exactly what to bid on. 

• Examine Every Contractor: Check experience, licenses, and past work before shortlisting. 

• Keep the Bidding Fair: Use the same info and timelines for all bidders. 

• Think Beyond Price: Don’t just choose the cheapest, look at quality, timelines, and reliability. 

• Document Everything: Keep records of bids, changes, and communication to avoid confusion later. 

Software in the Construction Bidding Process  

• Beyond Intranet 

Beyond Intranet’s construction bidding software is a SharePoint-based solution tailored for the industry. It centralizes bid data, manages timelines, ensures compliance, and simplifies vendor communication and evaluation workflows. With robust customization and seamless integration with Microsoft tools, it streamlines the entire bidding process for construction projects. 

• Procore 

Procore is an all-in-one construction management tool that simplifies bidding, RFIs, submittals, and project documents to keep everything organized and on track. 

• BuildingConnected  

BuildingConnected is a cloud-based platform that helps contractors manage bid invitations and collaborate with subcontractors more efficiently. 

• ConstructConnect  

ConstructConnect is a database that helps sales and business teams find and track public and private construction projects to grow their pipeline. 

At the bottom 

In the end, selecting a good contractor is not only for the project you are working on, it will help you in the future also. That is why a well-chosen contractor builds trust, shows reliability, and becomes a go-to partner for future projects. It will help you avoid risks and secure project success coming ahead.