What Is Construction Bidding And Its Importance?

Construction bidding is a way of presenting or submitting a proposal to undertake. Thus, this is with regards to a construction project. Before you arrive at the bidding process, you must undergo the estimation process. It means that the construction contractor will give the ballpark pricing of materials and labor. Now, this could change over time.

Understanding Construction Bidding

Usually, the one with the lowest price wins. But there are cases when the owners are more concerned with the materials used to ensure structural integrity. Thus, this is the part where it doesn’t matter if it is not the lowest price as long as the task is done following the demands of the owner. There are terms used in the bidding process, which will be explained further.

  • Tender – A tender is consists of an RTF or a request for tenders. Thus, this is an invitation. It asks suppliers to submit a bid to supply products or services. Also, this could come from either a private or public sector. In the public sector, a fee is expected to undertake the whole process. The RTF is a formal and structured document. It ensures that the project is transparent and free from biases. Everything has to be accounted so that corruption will never occur. And this happens in government projects. The tender will ensure that whatever went through the bidding process is appropriately evaluated and that a contract is signed, meeting all the requirements.
  • Estimated costs – A reliable and accurate cost estimate will avoid cost overrun. Also, this is where biding software shows its advantage, among other things associated with the bidding process.
  • Blueprints – These are drawings used in construction. Sir John Herschel introduced this technique in 1842. It shows the drawings specifications, floor plan and the like. Blueprints are accurate, and they ensure that the construction process is about to start.

How It Works?

There are other things included in the bidding process such as the types of materials, their quality, and quantity. There are cases where there is a need to address cost reimbursement. Billing details the food and other things necessary for the workers to complete the construction. The last is the statement of work which details the process, timeline and activities of the structure.

With all these things considered, the bidding process is complete. It also shows that before a project starts, everything is evaluated by numbers and it is still up to the owners to decide if they want to go through with the process, after looking through the construction bidding.


Every structure that touches our imagination is the result of a process that meticulous. Some underwent trial and error. It is up to the tools of a contractor and the skill of the builder to put all the pieces together. The bidding is a formal presentation where everything is transparent. This process is also possible through the help of technology, especially the bidding software. To learn more about the importance of using this technology to speed up the process of your bidding, then look for Bidding Software Using Guide by TG Daily.


Fiona Scott graduated from the University of Melbourne with a degree in Mass Communication. She founded in 2015 after working as a content analyst for many years.

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