Estimating & Proposals

What Should You Know Before Submitting a Bid Proposal?

Before submitting a bid proposal, contractors must verify all project details, confirm material and labor costs, review plans and specifications, and check licensing requirements. Accurate takeoffs, clear scope definitions, and risk contingencies are essential to avoid costly mistakes and protect profit margins.

We Get It

Submitting a bid without all the facts can cost you the job or sink your profits if you win. We've all felt the pressure to send a fast quote, but missing critical details often leads to headaches down the road.

Understanding the Details

Key Factors to Review Before Bidding

Project Scope and Specifications

We always start by carefully reviewing the plans, specs, and scope of work. Missing details or unclear language can lead to misunderstandings and change orders later.

Material and Labor Costs

Material prices fluctuate, and labor rates vary by region. It's critical to use current pricing and consider potential increases, especially for long projects.

Legal and Licensing Requirements

Not every job requires the same permits or licenses. Double-check local codes and client requirements to avoid disqualification or legal issues.

Timeline and Scheduling

Accurate schedules are crucial. Overlapping projects or unrealistic deadlines can stretch crews thin and hurt your reputation.

Risk Factors and Contingencies

  • Weather delays
  • Unknown site conditions
  • Subcontractor reliability

We always include contingencies for common risks to keep bids realistic and protect our bottom line.

Practical Steps

Steps to Take Before Submitting a Bid Proposal

  1. Thoroughly review all project documents. Double-check drawings, specs, and addenda for changes or missing information.
  2. Perform a detailed takeoff. Measure quantities yourself—never rely solely on client numbers or assumptions.
  3. Get updated pricing from suppliers and subs. Lock in material and subcontractor quotes in writing whenever possible.
  4. Confirm jobsite access and conditions. Visit the site to check logistics, utilities, and potential obstacles.
  5. Verify your licensing and insurance meet requirements. Attach any necessary documents to your bid to avoid delays.
  6. Include a contingency in your bid. Typically 5-10% for unforeseen issues, based on project complexity.

Taking these steps helps us submit bids we can stand behind, even if we win a tough job.

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Frequently Asked Questions

What documents should I review before submitting a bid proposal?
Contractors should review all project plans, specifications, addenda, and any client instructions before submitting a bid. Missing or misunderstood details in these documents can lead to costly errors or disputes after the job is awarded.
How do contractors ensure their bid pricing is accurate?
We always perform a fresh takeoff and get updated material and labor quotes before finalizing bid pricing. Relying on outdated numbers or estimates often leads to underbidding, which eats into profits or causes losses.
Why is it important to verify licensing and insurance before bidding?
Many clients and municipalities require proof of licensing and insurance with the bid submission. Not meeting these requirements can result in your bid being rejected, even if your price is competitive.
Should contractors include contingencies in their bid proposals?
Including a contingency—usually 5-10% depending on project risks—protects against unforeseen issues like site conditions or price increases. We always explain this line item to clients to maintain transparency.
What are common mistakes contractors make when bidding on projects?
Common mistakes include underestimating labor hours, missing hidden scope items, overlooking permit costs, and submitting bids without a site visit. Avoiding these errors is key to profitable jobs and fewer disputes.

Contractor Community Q&A

Real questions from contractors like you, answered by experts and peers.

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Carlos M. Electrician • Phoenix, AZ

What's the best way to handle estimates when I don't know exact material costs until I open up the walls?

31 found helpful 2 answers
EZcontractPRO Team Official

Use allowances! Give a budget range for the unknown portion (e.g., "Electrical rough-in: $800-1,200 allowance, final based on actual conditions"). This sets expectations and protects your margin.

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Maria G.

I always add 15% contingency for remodel work. Clients understand old houses have surprises. Just explain it upfront.

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Mike R. General Contractor • Austin, TX

How detailed should my estimates be for residential remodels? I've been doing simple one-line quotes but wondering if I'm losing jobs because of it.

23 found helpful 2 answers
EZcontractPRO Team Official

Detailed estimates almost always win more jobs. Clients feel more confident when they can see exactly what they're paying for. Try breaking down by room or phase - it also protects you if scope changes mid-project.

15
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James P.

I switched to itemized estimates last year and my close rate went up about 20%. Takes more time upfront but worth it.

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Sarah K. Kitchen & Bath • Denver, CO

Do you guys include labor as a separate line item or bundle it with materials? Clients keep asking me to break it out.

18 found helpful 1 answers
Construction Coach Expert

I recommend showing labor separately for transparency, but bundle it if you're worried about clients nickel-and-diming your hourly rate. Either way, be consistent across all your estimates.

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