The 5 Best Contract Bidding Resources for American Contractors

While you might believe that most construction companies are hired before a project has been established or ideated, that isn't always the case. In fact, contractors often have to get their construction projects through the process of contract bidding. This is the process where contractors can look at a detailed layout of what the project will require if they think their company would be a good fit for the project and create a pitch accordingly. Let's get into the process a little deeper.

Table of Contents

• What is Contract Bidding in Construction?
• The Contract Bidding Process
• What Does Project Delivery Method Mean?
• Best Contract Bidding Resources for American Contractors
• Why Bid Online?

What is Contract Bidding in Construction?

The term contract bidding in construction refers to the process of submitting a bid, also commonly referred to as a request for proposal (RFP), for a project contract. This is where interested project owners, often government or large, national contractors, invite bids on projects to carry out specific tasks or to supply specific material. This process often takes place once project owners have received designs from architects or primary contractors and then they invite bids from contractors and subcontractors to execute certain jobs.

The two most popular forms of tendering are public tendering (or open tendering) and selective tendering. The difference between the two is that while public tendering allows any prospective buyer to bid on the project, selective tendering happens when the owner of the project invites only certain companies and groups to bid while closing it to the public. This article will focus on the best resources that American contractors can use for contract bidding so they can find the best jobs that align with their capabilities.

The Contract Bidding Process

The process of contract bidding is necessary for government projects and private projects. However, the process is much less formal when dealing with private projects. Despite the difference, the two methods follow roughly the same 5 step process detailed below:

1. Bid Solicitation - This is when the invitations are sent out to the public which identifies the project requirements, contract type and the delivery method of each, which we will discuss later.
2. Bid Submission - In many ways, this is like sending a resume or job application to a potential employer. The contractor sends information on past projects, the amount of time it has taken them to complete similar projects and their budget estimates for project delivery. The bid price and professionalism of the submission can highly influence the decision of the project owner so this is a vital step to get right.
3. Bid Selection - Rules and regulations are put into place for government projects which require the lowest bid to win the project. The lowest bid refers to the contractor that is qualified for the job and has offered to do it at a lower cost for the project owner than other candidates. For privately run projects, the project does not go to the lowest bidder every time but it is still common for that to be the case.
4. Contract Formation - The owner has selected the bid that meets the requirements and now forms a legal contract binding the parties together before pre-construction begins.
5. Project Delivery - It is now time to execute the project.

What Does Project Delivery Method Mean?

The project delivery method can be described as the structure of the relationship between the parties, the roles and responsibilities of both parties, and the general sequence of activities required to deliver the project. When choosing your delivery method, it is important to understand the size and scope of the project, the owner's budget, any risks involved, the owner's experience with similar jobs and the schedule. The six most common delivery methods are categorized as such:

• Design-Bid-Build (DBB) - Also known as a hard bid, this is the most popular delivery method for construction projects. The reason behind its popularity is the fact that it usually results in ensuring the lowest construction price. This method allows for designers and general contractors to work directly for the owner under separate contracts which gives the owner a lot of input on the job, which can often be their preference.
• Design-Build (DB) - In this delivery method, both the design and construction stages are covered under one contract with one company. The entire project is handled by either the designer and architect or the contractor. This method has gained popularity in recent years due to its efficiency in communication.
• Construction Manager at Risk (CMAR) - The CMAR method has a construction manager, like a general contractor, acting as the project owner's representative during both the design and construction phases. Similar to DBB, the method separates the design and building processes. However, the construction manager does take on a certain level of risk in this case as they would absorb the costs that exceed budget limitations.
• Construction Management Multi Prime (CMMP or MP) - In the multi-prime method, the project owner acts as the general contractor. The owner develops a contract with each of the design team members and subcontractors. This method is good for owners who have a lot of experience managing similar projects and want more control over project decisions. However, it does require a certain level of communication from project owners.
• Public-Private-Partnerships (PPP or P3) - The PPP method is used for projects that result in a partnership between a public and private entity. Affordable housing and infrastructure projects will usually use the PPP method.
• Integrated Project Delivery (IPD) - IPD is the newest project delivery method in construction. In these projects, all of the project team members are contractually connected with only one contract. All team members are selected before design begins, and they each play a role in the whole process, from design to construction. While it is a great way to get input from multiple experts, it can also slow down the process due to the sheer amount of communication and agreement that needs to happen.

Best Contract Bidding Resources for American Contractors

Contract bidding used to be done either in person or through the mail. However, like most in-person and paper exchanges, this style has become a bit outdated and much more simple to carry out online. There are several bidding platforms for construction projects in America, and here are 5 worthwhile and easy to use resources:

1. BidClerk - With 1.1 million contacts and 400,000 jobs added to the database every year, there is always a job to find on BidClerk. Contractors and subcontractors can search jobs by location and find all of the necessary project information directly on the site. Projects can also be filtered by sector, pre-bids, construction type and building use.
2. Construction Bid Source - Features projects in the United States that can be filtered by state. The website allows pre-bids and gives all project details. You are also able to filter jobs based on the date published and project type ensuring that you're finding recent jobs that are specific to your company's qualifications.
3. Dodge Construction Central -  Includes a unique checklist for subcontractor pre-qualification to prevent risk and extra work. The website also allows subcontractors to search for jobs based on business type while providing industry trends, bid management and even a tool to help with getting the right equipment.
4. GovernmentBids.com - The most popular source for federal, state and local government bids. Subcontractors can search by region and categories through countless government RFPs, contract bids and procurement systems.
5. iSqFt - Helps subcontractors to better understand the market and find suitable jobs for them. Over 800,000 professionals use the platform to build relationships and control the bidding process.

Why Bid Online?

Online bidding is optimal for contractors looking for projects. Anywhere that you have access to a computer you can look for work on any of the platforms listed above often with multiple jobs being posted daily. They all allow you to filter by area and type of job which makes it easy for focused project searching. The entire process can be done online up until it is time to execute the project which saves time and allows you to get working quicker than ever.