How To Win Construction Bids In Alabama

When you are in the construction area, you know how important it is to win bids. After all, most contracts tend to be awarded to construction companies after a very competitive bidding process. So, it is important that you understand how the construction bids in Alabama works to ensure that you can bring more business to your company.

Things You Need To Consider Before Bidding

While you may want to bid on all new construction opportunities, the truth is that it is better to take a step back and understand how the process works to ensure that you can actually win it.

Before you start bidding it is important to determine if the project is really right for you. Besides, you need to determine if you have the right backlog to take a new contract as well as if you have all the expertise that is needed for the project.

#1: The Project Delivery:

Before you submit your bid for a new project, you should make sure that you can comply with the delivery method that is used. This is determined by different aspects that may include:
The schedule
The building design
• The owner’s budget
• How the risks will be allocated to the project.

#2: The Contract Type:

Besides the scope of the work, the contract type will determine how payments are disbursed, for example. So, it is important that you understand a bit more about the most commonly used contracts (lump sum, cost-plus, time and materials, and unit-price.

Basic Construction Bidding Procedure

One of the things that you need to understand is that government jobs tend to be highly regulated. While you have other types of projects that are less formal, it is important to understand the best practices so you can win them.

#1: Bid Solicitation:

Bid Solicitation occurs when the owner dens an Invitation For Bid (IFB) or a Request for Proposals (RFP). These tend to be made to specific constructors only and they’re not public. During this stage, you will get to know the specifications about the project itself, the contract type, the requirements, and the delivery method. In most cases, the contract is awarded to the higher bidder.

#2: Bid Submission:

When you are taking care of your bid submission, you need to make sure that you are including all the information about your business that is relevant for the project. This should include plans for management, your past projects, and even a track record of staying on budget and on schedule.

You also need to make sure that your bid already includes things such as equipment, materials, labor, overhead, and profit margin. To make sure that you win a bid, you should offer the best quality at a reasonable price.

#3: Bid Selection:

When you are bidding on a government project, you need to understand that in most cases, the winning bid will be the one that has a lower value associated. This is to ensure that there is no favoritism, fraud or abuse.

For private projects, the selected bid varies from case to case. However, in most cases, the owners will take other factors into consideration and not only the price itself.

#4: Contract Formation

As soon as the bid is selected, the contract will need to be formed and signed. In case your construction company wins the bid, this is a good opportunity to negotiate. After all, you can still negotiate the terms and the final pricing of the contract.