How to Write a Construction Bid: Step-by-Step Guide for Contractors
Winning bids aren’t just about the lowest price—they’re about clarity, credibility, and confidence. This guide gives you a practical framework to scope, price, and submit professional, profitable construction bids. Use the checklists, examples, and templates to streamline your process and win more work.
What Clients Actually Want in a Bid
- Clarity on scope, materials, and timeline
- Professional presentation and easy-to-read pricing
- Proof you understand site constraints and risks
- Reasonable allowances and exclusions
- Confidence you’ll communicate well and finish on time
The 7-Step Bid Writing Process
1) Clarify Requirements and Site Conditions
- Review plans/specs and note missing info
- Visit the site or request photos, measurements, and access constraints
- Identify existing conditions: utilities, demo, protection, staging
- Confirm client decision points: materials, finishes, fixtures, brands
Use this discovery checklist:
- Drawings and scope confirmed
- Measurements verified
- Permit/inspection responsibilities assigned
- Lead times and procurement risks understood
- Subcontractor quotes received and aligned to scope
2) Break the Work into Bid Items
Group work logically so pricing and changes are transparent.
Common divisions:
- Demolition and Prep
- Framing/Carpentry
- Electrical/Plumbing/HVAC
- Drywall and Finishes
- Flooring/Tiling
- Fixtures and Trim
- Cleanup and Disposal
3) Build Quantity Takeoffs and Unit Costs
- Measure quantities: LF, SF, EA, CY
- Apply labor productivity and wage rates
- Add material costs, taxes, delivery, waste factors
- Include equipment, rentals, and small tools
Pro tip: Track actuals from completed jobs to refine your unit costs and labor productivity over time.
4) Add Overhead, Contingency, and Profit
- Job overhead: supervision, project management, dumpsters, portable toilet, temp power, mobilizations
- Company overhead allocation
- Contingency for unknowns (typically 2–10% depending on design completeness)
- Target profit margin based on scope complexity and risk
5) Define Inclusions, Exclusions, and Allowances
- Inclusions: exactly what’s provided (brands, models, counts)
- Exclusions: what’s not included (permits? engineering? patch/paint?)
- Allowances: placeholders for selections (e.g., tile at $6/SF material-only)
Clear boundaries prevent disputes and protect your margin.
6) Build Schedule and Milestones
- Start date assumptions and lead-time dependencies
- Duration by phase; identify inspection hold points
- Client responsibilities (approvals, selections, access)
7) Package, Proof, and Submit
- Clean, consistent formatting; one PDF if possible
- Cover letter with summary and next steps
- Itemized pricing with taxes/terms
- Signature block and acceptance language
Professional Bid Template (Copy/Paste)
Cover Letter
Client Name
Project Address
Date: [Auto-fill today’s date]
Subject: Proposal for [Project Name]
Dear [Client Name],
Thank you for the opportunity to bid on your project. Based on the drawings, site conditions, and our discussions, we propose to furnish all labor, materials, equipment, and supervision necessary to complete the work described below.
We have structured this proposal for clarity with itemized pricing, inclusions/exclusions, and allowances. Please review and contact us with any questions.
Sincerely,
[Your Company]
[License/Insurance info]
Scope of Work (Example)
- Demolition: Remove existing cabinets, countertops, and appliances. Protect floors and adjacent areas.
- Carpentry: Install new base cabinets and wall cabinets per plan.
- Countertops: Supply and install quartz countertops, 3cm, eased edge.
- Electrical: Install three new GFCI outlets and under-cabinet lighting; tie into existing circuit if capacity allows.
- Plumbing: Reconnect sink, faucet, and dishwasher; install new shutoff valves.
- Finishes: Patch and paint disturbed areas to match adjacent.
- Cleanup: Daily cleanup; final jobsite clean.
Inclusions
- Labor, material, equipment, fasteners, adhesives
- Countertops: Quartz in Group A selections
- Hardware: Standard soft-close hinges and slides
Exclusions
- Permit fees and third-party engineering
- Asbestos/lead testing and abatement
- Appliance supply
- Panel upgrades; unforeseen code corrections outside defined scope
Allowances
- Tile material allowance: $6.00/SF (material only)
- Faucet allowance: $250 (material only)
Schedule
- Estimated start: 3–4 weeks from acceptance and deposit
- Duration: Approximately 10 working days, subject to material lead times
Price Breakdown (Sample Structure)
- Demolition and Protection: $1,250
- Carpentry and Installation: $4,800
- Countertops (Quartz Group A): $3,900
- Electrical: $1,100
- Plumbing: $950
- Finishes and Paint: $1,100
- Cleanup and Disposal: $400
Subtotal: $13,500
Sales Tax (where applicable): $—
Overhead and Profit: Included
Total Proposal Price: $13,500
Payment Terms: 40% deposit at acceptance, 40% progress payment at countertop template, 20% at substantial completion. Net 7 days.
Proposal Validity: 30 days from date above.
Acceptance:
Name/Signature: _____________________ Date: __________
Readable Pricing Format Tips
- Keep line items logical and minimal; add detail in scope text
- Use round numbers and consistent units
- Show allowances separately for easy adjustment
Common Bid Mistakes to Avoid
- Ambiguous scope that invites scope creep
- Missing exclusions or unclear allowances
- Underestimating labor productivity or mobilizations
- Ignoring procurement and inspection lead times
- Sub quotes not aligned with your inclusions/exclusions
Pre-Submission Checklist
- Quantities verified against drawings
- Sub quotes reconciled to your scope
- Exclusions and allowances clearly stated
- Schedule assumptions documented
- Taxes, insurance, and overhead included
- PDF is clean, branded, and easy to navigate
Bonus: Quick Bid Email Script
Subject: Proposal – [Project Name] – [Your Company]
Hi [Client Name],
Attached is our proposal for [Project Name]. It includes scope, itemized pricing, allowances, and schedule assumptions. If everything looks good, please reply to confirm and we’ll send the acceptance for e‑signature and schedule your start date.
Happy to walk through any details or value-engineer options.
Best,
[Your Name]
[Your Company]
With a consistent structure, clear assumptions, and disciplined pricing, your bids will be easier to approve—and more profitable to execute.