Experienced contractors understand that the bidding process is highly competitive. The standard measure of success, regarding the ratio of bids submitted to bids accepted, is about 5:1. Four key components are involved on the road to project completion: solicitation, submitting, election, and drawing up a contract.

A property or project owner will typically open a request for proposal, invitation for bid, or request for quote. The bid package will contain the specs for contenders to produce their most accurate bids. Measure twice and cut once: Read the RFP carefully, and only bid on the most suitable projects.

Private projects are often offered to select companies and sometimes managed through a bid-solicitation management platform. Public agencies must open invitations to all contractors qualified to work government jobs. While government projects are often mandated to select the bid with the lowest price, private projects may emphasize experience or other factors.

Formulating an accurate bid must consider the costs of equipment, labor, materials, overhead, and the profit margin desired. Subcontractor fees need to be folded into these costs.

During contract formation, there always remains room for negotiation. This is the time to speak up to work out the most favorable terms.

Becoming familiar with and confident working through the construction bidding process takes time. While this outline can serve as an introduction, there is a vast amount of detail that any contractor needs to learn. It may be helpful to look into various software programs to automate the process. There are also online courses and coaching programs. Networking with local professional groups can be helpful even as it opens doors to new potential partners, vendors, and clients.