Construction Bidding

Construction bidding is the process of submitting a proposal to carry out a described residential or commercial construction project for an agreed price. Bidding can occur at the construction manager, general contractor or subcontractor level. Bids by contractors for the total cost of construction are submitted to a project owner or developer who then makes decisions based on price, contractor qualifications, and other factors.

Bid Solicitation
Bid Solicitation is the process of making published construction data readily available to interested parties, including construction managers, contractors, and the public. There are several services, including government entities and private data services, that allow project owners to release project details to solicit and obtain contractor bids. These services act as a gateway for project owners to release project information to a large group of contractors, general contractors or subcontractors in an attempt to solicit bids. Many of these services are subscription based or charge a flat rate for project data.

Design-bid-build
The design-bid-build method is the most common construction delivery method. This process begins with an owner selecting an architect to prepare construction documents. In most cases, the architect will release these construction documents publicly, or to a select group of general contractors, who will then place a bid on the project which reflects what they believe cost of construction will total. This bid is inclusive of a multitude of subcontractor bids for each specific trade. The general contractor’s fee is generally built into the bid cost. Most government contracts are bid competitively using this method.

Design-build
Design-Build (or design/build, and abbreviated D-B or D/B accordingly) is a construction project delivery system where, in contrast to traditional "design-bid-build" (or "design-tender"), the design and construction aspects are contracted for with a single entity known as the design-builder or design-build contractor. The design-builder is usually the general contractor, but in many cases it is also the design professional (architect or engineer). This system is used to minimize the project risk for an owner and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. Where the design-builder is the contractor, the design professionals are typically retained directly by the contractor.