how to estimate a construction bid – Guarantee Estimation https://guaranteeestimation.com Construction Estimation Service Wed, 07 Aug 2024 15:30:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 https://guaranteeestimation.com/wp-content/uploads/2021/10/cropped-GE-logo-32x32.png how to estimate a construction bid – Guarantee Estimation https://guaranteeestimation.com 32 32 What are the general steps involved in the construction bidding process? https://guaranteeestimation.com/2023/04/20/steps-in-construction-bidding/ Thu, 20 Apr 2023 11:26:13 +0000 https://guaranteeestimation.com/?p=13649 The construction bidding process involves a contractor presenting a proposal, called a tender, to a client for carrying out or managing a construction project. It plays a crucial role in construction projects as it allows firms to choose contractors to hire.

Standard Procedure of Bidding:

The standard procedure for construction bidding includes the following steps:

  • The client or general contractors issue bid invitations to contractors or subcontractors.
  • The contractors or subcontractors receive the invitation which includes the scope of work, deadline, penalties, and pre-qualification requirements.
  • The contractors or subcontractors examine the tender document and evaluate the project based on their cost codes.
  • The contractors or subcontractors submit their bids to the client or general contractor.
  • The client or general contractor awards the bid to the subcontractor with the most advantageous offer, which then becomes a binding agreement.

Types of Bidding Methods:

When a property owner intends to receive bids for a construction project, they can choose from four types of tendering methods, namely, open tendering, negotiated tendering, selective tendering, and serial tendering.

  1. Open Tendering: This method allows anyone to submit a bid on a project, and it is widely used in government projects. The open tendering process is considered to create maximum competition and lower the costs of the project.
  2. Negotiated Tendering: In this method, the property owner selects a single contractor to carry out the work and negotiates a contract with them. This tendering method is only applicable to highly specialized projects and might be considered anti-competitive in some cases.
  3. Selective Tendering: This is a balanced approach between open and negotiated tendering, where a limited number of contractors, pre-determined by the property owner, are invited to submit their bids. This method provides a balance between competition and simplicity in the bid selection process.
  4. Serial Tendering: This method is used for situations where the property owner is soliciting bids for a series of similar projects over a specified period. For example, a housing developer may need to construct hundreds of residential homes over three years. Serial tendering can reduce the burden of repetitively soliciting bids for similar projects, but it may also reduce competition.

Major Steps in the Construction Bidding Process:

Bid Solicitation:

This is the first step in the construction bidding process where the property owner, who is looking to undertake a construction project, issues an Invitation for Bid (IFB), a Request for Quote (RFQ), or a Request for Proposal (RFP) to the contractors.

 For public projects, the bid solicitation is usually an open invitation to all the contractors who are registered to work on government construction projects. However, for private projects, the bid solicitation may be open or sent to a select few contractors. In some cases, the bids may be solicited through bid management platforms like Procore or PlanHub.

The bid solicitation document should include the following information for the contractors:

  • Construction Bidding specifications
  • Project requirements
  • Contract type
  • Project delivery method

In addition to these details, the bid solicitation document may also ask for additional information about the contractors, such as their qualifications and past projects, to prequalify the contractors and ensure that they are capable of delivering the job as promised.

Construction Bidding Submission:

In this phase, contractors who meet the prequalification requirements and are interested in the job, submit their bids to the property owner. The contractors will submit documentation about the project timeline and costs, as well as information about their business. General contractors will solicit bids from subcontractors to complete specific aspects of the job, and they combine all of the information into a single bid, which they then submit to the property owner.

To create an accurate bid, contractors must perform a detailed cost estimate of the project. This includes calculating costs for labor, materials, equipment, overhead, and profit margins. This can be done by reviewing the project specifications, performing material takeoffs, and calculating overhead and profit margins. The final bid should represent the best quality at the most reasonable price.

Bid Selection:

In this phase, the property owner will select the winning bid. For public projects, government rules often mandate that the lowest bid wins. However, private project owners may take into account factors beyond price, such as contractor experience, safety records, and scheduling philosophy, to determine which contractor is most suitable for the job. When property owners receive multiple bids with similar prices, they may use internal scoring systems or other prequalification measures to determine the winning bid.

Contract Formation:

Once the winning bid has been selected, the property owner and the winning contractor will enter into a contract. The contract should be a detailed agreement that outlines the expectations and responsibilities of both parties, including the scope of work, payment terms, completion timeline, and any penalties for non-compliance.

Project Delivery:

Project delivery is an essential aspect of the construction bidding process, even though it is not considered part of the bidding itself. Before the bidding process starts, the property owner must determine the project delivery method, which will play a significant role in the way bids are solicited and submitted.

Several project delivery methods could be used for construction projects, including Design-Bid-Build, Design-Build, and Construction Bidding Manager at Risk. These methods vary in terms of the way bids are solicited, submitted, and evaluated.

Design-Bid-Build:

Is a traditional method where the property owner employs a separate design firm to create the designs for the project. The general contractors then bid on the construction of the project based on the designs. In this method, the contractor is only involved in the construction of the project and is not responsible for the design.

On the other hand, the Design-Build method is a single-source delivery system that employs a single firm to provide both the design and construction services. In this method, bids are only received from subcontractors that support the work of a single firm. In other words, the single firm acts as the general contractor and is responsible for both the design and construction of the project. Finally, the Construction Manager at Risk (CMAR) method involves the hiring of a construction manager to provide both pre-construction and construction services. The construction manager is responsible for managing the construction process and is at risk for delivering the project within a guaranteed maximum price. In this method, the construction manager is involved in the project from the beginning, and the contracts for the construction work are negotiated and awarded to the subcontractors.

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Is Construction Cost Estimation Essential for Bidding https://guaranteeestimation.com/2023/03/09/is-accurate-cost-estimation-essential-for-success-in-construction-bidding/ Thu, 09 Mar 2023 11:56:27 +0000 https://guaranteeestimation.com/?p=13547 Construction bids are proposals submitted by contractors, builders, or construction firms to compete for a construction project. These bids typically include detailed plans, specifications, and cost estimates for the construction project, outlining the work to be done, materials to be used, and the time required to complete the project.

Construction bids

are typically evaluated based on several factors, including the contractor’s experience and qualifications, the proposed work plan, the proposed cost, and the proposed timeline for completing the project. The contractor with the winning bid is typically awarded the contract to complete the construction project.

Accurate cost estimation is essential for success in construction bidding. When contractors bid on a project, they are essentially providing an estimate of how much they will charge to complete the project. This estimate needs to be accurate and reflective of the actual costs involved, to ensure that the contractor can deliver the project as promised while still making a profit.

Accurate cost estimation helps win bids:

Accurate cost estimation plays a critical role in helping contractors win construction bids in the highly competitive construction industry. Clients want to work with contractors who can provide them with a realistic and accurate estimate of the costs involved in a project. When contractors can provide a competitive estimate that is also accurate, they are more likely to win the bid and secure the project.

By providing accurate cost estimates, contractors can show their clients that they have a good understanding of the project requirements and are committed to delivering the project on time and within budget.

This can lead to a better working relationship between the client and contractor, as the client will trust the contractor’s ability to manage the project effectively.

Accurate cost estimation prevents cost overruns:

Accurate cost estimation is critical to preventing cost overruns in construction projects. When contractors underestimate the costs involved in a project, they risk running into unexpected expenses later on, which can lead to delays, extra expenses, and ultimately a lower profit margin for the contractor.

Cost overruns can occur for various reasons, such as unexpected delays, changes in project scope, or unforeseen circumstances that affect the cost of labor, materials, or equipment. If the contractor did not account for these contingencies in their original cost estimate, the project can quickly become more expensive than anticipated, leading to cost overruns.

When cost overruns occur, they can negatively impact the contractor’s profitability and reputation.

Accurate cost estimation enables effective project planning:

Accurate cost estimation is critical to effective project planning in the construction industry. When contractors have a clear understanding of the costs involved in a project, they can plan accordingly and ensure they have the necessary resources and materials to complete the project successfully.

With accurate cost estimation, contractors can develop a detailed project plan that outlines the resources and materials needed to complete the project within the specified timeframe and budget.

It also allows contractors to identify potential cost-saving opportunities, such as the use of alternative materials or technologies, that can help reduce project costs without sacrificing quality. This can be especially important in situations where the client has a tight budget or is seeking cost savings.

Accurate cost estimation creates blind trust with clients:

Accurate cost estimation is an essential element in building trust with clients in the construction industry. Clients want to work with contractors who are transparent and honest about costs.

Clients may be skeptical of contractors who provide low or vague cost estimates, as they may fear that the contractor doesn’t have a deep understanding of the project’s scope, timeline, and budget.

It can help prevent disputes and misunderstandings between the contractor and the client. When the client understands the costs involved in the project, they are less likely to question or challenge the contractor’s expenses. This can result in a smoother project process and a more positive experience for both the client and the contractor.

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Few Best Reasons Removing Wallpaper Glue is Necessary https://guaranteeestimation.com/2023/02/19/why-removing-wallpaper-glue-is-necessary/ Sun, 19 Feb 2023 17:18:14 +0000 https://guaranteeestimation.com/?p=13529 How to remove wallpaper glue?

Removing wallpaper glue can be a daunting task. The task of chipping away at the walls with scrapers and harsh chemicals does not sound fun. But, fear not! There are actually several alternative methods for removing stubborn wallpaper glue that is much easier on your walls, as well as your sanity. In this blog post, we’ll explore some of the best ways to tackle this pesky problem and get your walls looking good as new in no time.

Assuming you are talking about removing old wallpaper glue, the best way to do this is with a putty knife and some elbow grease. You will want to start by scoring the wallpaper glue with the putty knife to create a crosshatch pattern. This will help the glue to release from the wall.

Once you have scored the glue, use a sponge or cloth soaked in warm water to wet the glued areas. Be sure to apply pressure while scrubbing to loosen the grip of the glue. You may need to repeat this process a few times before all of the glue has been removed.

Why you should remove wallpaper glue?

When removing wallpaper, it is important to remove all of the glue as well. If you leave behind any residue, it will be difficult to apply new wallpaper or paint over the area.

Here are a few reasons why you should remove wallpaper glue:

It’s important to start with a clean surface: If you don’t remove all of the glue, it will be difficult to get an even application on new wallpaper or paint.

Glue can be difficult to remove: Depending on the type of wallpaper glue, it will be difficult to get to remove if you don’t take care of it right away.

You don’t want any surprises later on: Once the job is done, you don’t want to find out that there was still some glue left behind. This can cause problems down the line, so it’s best to take care of it now.

Process of removing wallpaper glue:

Assuming that you have already prepared your walls by scoring the wallpaper and removing any loose bits, the next step is to focus on the glue removal process. The first thing you need to do is to use a putty knife or scraper to remove as much glue as possible. If there is a lot of glue built up, you may need to use a heat gun to soften it before you can scrape it away.

It is essential to get rid of as much glue as possible before moving on to the next step. The next step involves working on the residual adhesive with strippers or solvents. These strippers and solvents are formulated to break down the adhesive, making it easier to remove wallpaper glue.

To apply the stripper or solvent, use a paintbrush or roller, and apply it generously to the wallpaper. Be sure to get into all the nooks and crannies where the glue may be hiding. You should also make sure to wear gloves and protective eyewear when using these chemicals to avoid any contact with your skin or eyes.

After applying the stripper or solvent, let it sit for the recommended amount of time. This time can vary depending on the product used, so be sure to read the label and follow the instructions carefully. After the recommended time has passed, use your scraper or putty knife to remove any remaining wallpaper glue. You may need to repeat this process several times before all of the glue is removed.

Removing wallpaper glue is a multi-step process that involves removing as much glue as possible with a scraper or putty knife, softening the remaining adhesive with strippers or solvents, and then removing it with a scraper or putty knife. It is essential to be patient and take the time to do it right to avoid any damage to your walls.

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How can you secure a Construction Bids and provide the client with a clear understanding of the cost and timeline for the project? https://guaranteeestimation.com/2023/02/06/how-can-you-secure-a-construction-bids-and-provide-the-client-with-a-clear-understanding-of-the-cost-and-timeline-for-the-project/ Mon, 06 Feb 2023 12:13:48 +0000 https://guaranteeestimation.com/?p=13503 A constructions bid is a formal offer made by a contractor to a client, in response to an invitation to bid on a construction project. It includes a detailed description of the scope of work, labor, materials, and equipment needed to complete the project, as well as the contractor’s estimated cost for the work and the proposed timeline for completion. The goal of a construction bid is to secure a contract for the contractor and provide the client with a clear understanding of the cost and timeline for the project.

Importance of Construction Bids:

The constructions bid process is an essential part of the construction industry, as it plays a critical role in the successful completion of construction projects. Here are a few key reasons why construction bids are important:

Establishing cost and timeline:

A construction bid provides a clear understanding of the estimated cost and timeline for a project, allowing the client to make informed decisions about the project and budget accordingly.

Competition:

Constructions bids help to create competition among contractors, leading to more competitive pricing and higher quality work.

Legal protection: A well-prepared construction bid can serve as a legally binding document, protecting both the contractor and the client from misunderstandings and disputes over the scope of work and payment.

Evaluation of contractors: Construction bids allow clients to evaluate the qualifications, experience, and past performance of contractors, helping to ensure that the best contractor is selected for the project.

Transparency:

The construction bid process promotes transparency and fairness, reducing the risk of Fraud, corruption, or unethical behavior in the construction industry.

Difference between Constructions Bidding and Construction Estimation:

Construction bid and construction estimation are two distinct but related aspects of the construction process. Here are the key differences between them.

  • The primary purpose of a constructions bid is to formally offer to perform a construction project for a specified cost and timeline. In contrast, the purpose of construction estimation is to determine the cost and timeline of a construction project before it is put out to bid.
  • Construction bids are typically based on detailed project specifications, drawings, and plans provided by the client or the architect. Construction estimations, on the other hand, are based on preliminary information and conceptual designs, which may be subject to change.
  •  Construction bids typically provide a much higher level of detail than construction estimations, including a detailed description of the scope of work, labor, materials, and equipment required to complete the project.
  • Constructions bids are legally binding documents, whereas construction estimations are not. A construction bid becomes a legally binding contract when it is accepted by the client.
  • Constructions bids are used to select the contractor for a specific project, and competition between contractors is a key aspect of the bid process. Construction estimations, on the other hand, are typically prepared by a single contractor or construction consultant and are not intended for use in a competitive bidding process

Construction Bid Template:

There are several benefits of using a construction bid form template for your construction company or as a project manager. Firstly, templates can significantly speed up the bid-making process, allowing you to send out more bids in a shorter amount of time. This helps to reduce the costs of the bidding process while increasing the potential projects your team can take on. It also streamlines the bidding process, freeing up time for billable tasks and making it easier for new hires to take over the bidding process.

Another advantage of using a construction bid template is that it helps establish a standard operating procedure (SOP) for the bidding process, making it easier to scale your construction company. The ability to customize bids to each project also enables you to create more professional-looking proposals, helping you stand out from your competition.

Using a construction bids form template has many advantages, from speeding up the bid-making process to streamlining work for your whole team and allowing for better revenue forecasting. It is an essential tool for construction companies looking to grow and compete effectively in their market.

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What is a CPM Schedule in Construction?   https://guaranteeestimation.com/2022/12/27/a-cpm-schedule-in-construction/ Tue, 27 Dec 2022 11:40:12 +0000 https://guaranteeestimation.com/?p=13370 The majority of construction projects are extremely mind-boggling, with numerous tasks that must be coordinated. It is crucial to have carefully monitored projects so that they can be finished on schedule, with the right office work and record-keeping. To that end, it is critical to have precisely planned projects, which is why many development organizations use CPM schedules.

The CPM Method: 

The basic technique in development is a strategy for project planning that separates required exercises, utilizing a graph to compute the time expected to finish every activity. 

The CPM maps out each activity required to complete the project, including critical and non-critical activities. The critical path method, or CPM schedule for short, is in some cases alluded to as “critical path scheduling.” Project managers typically use it to precisely plan construction projects.

Identification of a Critical Path: 

A thorough network diagram that considers each activity’s length, predecessors, and latency determine the critical path. The series of tasks that must be performed in order for the project to be finished is known as the critical path. 

Critical Path Diagram: 

A critical path diagram is a visual organizing tool that addresses all of the development exercises expected to finish an undertaking. The diagram considers the span of each activity as well as how each activity is related to and lags behind others.

 The outline considers a task to be outwardly separated into exercises, which are in many cases portrayed in boxes. There is an organization of lines between the boxes, which show precisely the way that every action is associated and the interconnected stream that is expected to finish an undertaking.

CPM Scheduling: 

Making a CPM schedule should be achievable both physically and with the aid of a scheduling system, but the same crucial steps are always taken. The steps toward making a basic CPM schedule plan are as follows:

  • Distinguish every particular activity. 
  • Measure every action’s duration (counting start and end dates). 
  • Outline the organizational shape and cross-over activities that could take place concurrently, crashing your schedule. 
  • It is basic that critical path diagrams be refreshed on a case-by-case basis and as the project unfurls to show progress and remain coordinated.

Usage of Critical Path Method (CPM Schedule): 

Project managers can determine the full necessary duration of a task by using the Critical Path Method to outline each undertaking’s duration, every action, and lag. The CPM is then employed to identify the fundamental tasks (critical paths) that are anticipated to conclude the project that is being planned. 

Non-critical activities are likewise recorded on a critical path diagram. These are activities that are more adaptable in terms of time and will not have a significant impact on the task. Project managers can construct critical and non-critical activities and think about various choices for each.

CPM in the Field of Construction: 

Construction projects can take a lot of time and effort. CPM schedule helps project chiefs guarantee that development projects are finished on time and within their financial plans. While a construction contract is being signed, project heads can make use of the CPM to lay out and get equipped for the approaching project.  

They are able to divide up each of the important activities, exposing them in the outline, interacting with their interdependencies, estimating movement lengths, and identifying the fundamental approach to completing the assignment.

CPM schedules can be used by project managers to track the progress of a project. They can update the outline with actual start and end dates for each step and make modifications as needed.

CPM additionally facilitates improvement by supporting site managers to manage the project activity on site. When the undertaking starts, site supervisors can utilize the CPM to effectively deal with their teams and the tasks required, to finish the task.

They can use the CPM to stay on track and on schedule. It could be given to subcontractors so that they can learn more about what is required to complete the job.

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