Navigating The Bidding and Initial Contract Process
Your plans are ready, you've followed the steps outlined here, selected your handful of contractors to interview, and are READY TO START THE BIDDING PROCESS.
1) Submit Your Request To Bid To The General Contractor
This is where the bidding process begins. You may choose to contact the contractor directly or, depending on the scale of your project, you can advertise it publicly and allow contractors to contact you. The majority of our projects are taken on by direct submission.
When submitting your request for a bid, your package should include:
Project drawings
Specifications
Whether you're listing privately or publicly
Bid date and time
Any additional company information you would like to request
Questionnaires
Other relevant documentation
2) GC Reviews and Sends Request For Bid To Subcontractors
In the event your project is quite complex and we (or another contractor) decide to accept your request for a bid, we will send all relevant documents to the appropriate subcontractors for an estimate of their part of the services.
Typically our extensive experience and familiarity in all aspects of the construction process allow us to give accurate estimations without the need to submit any further documents for review. This, in turn, saves you time in the long run.
3) Final Bid Price
Once all of your documents have been reviewed and studied, we will put together your final bid packet. A lot of contractors use automated software and templates to generate these estimates. While I'm sure these have their uses, we prefer to write them all out by hand and send them to our legal team for proper typing and review. This is to ensure that everything is accurate and 100% tailored to each client's specifications rather than a general summary.
Please take a moment to review a winning proposal we submitted to a former client:
(All names, dates, prices, addresses, and other identifying information have been removed to protect our client's privacy as we enter into a non-disclosure agreement with each party.)
As you can see above, a proposal is a complex and all-inclusive document. Each facet of a project must be outlined and explained with the utmost attention to detail.
Unlike an estimate, which is an educated guess, a proposal/bid is an offer for specific services, within a set timeframe and at a certain price.
Most all of our proposals have a 72-hour turnaround time from receipt to delivery back to you, the client. We will set a date and time with you at the beginning of when you can expect to receive it and we work diligently to ensure you have it before that deadline.
4) A Contractor Has Submitted A Bid Back To You In Less Than 48 Hours
This isn't a common scenario with reputable general contractors. As you can see above, a lot of work and variables go into forming a proper proposal; However, it is worth noting because this could be a red flag and mark of a scam artist.
5) Analyzing Your Bids
It goes without saying that some clients prefer to choose the lowest-priced bid. That's a respectable decision in a lot of scenarios. The flip side to that coin is what will be sacrificed in exchange for that lower dollar amount. This is a question each prospective client should ask themselves and deliberate on.
Once you are satisfied that you've secured the most knowledgeable and suitable general contractor for your needs, it's time to reach out and begin the contract process.
6) A Bid Is Considered An Offer
If an offer is accepted it becomes a legally binding contract. It's a promise that ensures each interested party is protected and has rights and that work will be carried out according to pre-set specifications and timelines.
7) To Become A Contract A Formally Written Agreement Must Be Signed
Before a contract is signed, this is the time to make any necessary adjustments and negotiations between parties. This is also the point at which you should provide your contractor with a statement from your bank or lending institution affirming your available funds if you haven't already.
Please take a moment to review an example of an official contract:
(All names, dates, prices, addresses, and other identifying information have been removed to protect our client's privacy as we enter into a non-disclosure agreement with each party.)
8) All Proposed Services Must Be Finely Detailed
Construction is an investment. It's expensive. Please be sure to read your contract thoroughly before signing. Once agreed upon and signed, it is legally binding.
Much like buying a house, once the contract is signed, your deposit is disbursed to the relevant subcontractors, we begin ordering materials and start work on your project.