A lot goes into the decision to bid or not to bid on a project. You want the job, but you also need to be able to execute it successfully and profitably.
You may hear about construction jobs through bid websites, the news, or personal connections. Deciding which ones to chase comes down to a few questions:
- Capability — do your capabilities match the project requirements, and can you deliver?
- Size — do you have the bonding capacity to match the project value?
- Workload — how much work are you handling now, and how much more can you take on?
- Complexity — do you have a qualified team available?
- Equipment — what does the job need, is it available, and what will it cost if you have to rent?
Once you've found the right bid, you also need the right estimating team.
After you decide to bid, get organized so you can build an accurate proposal that covers everything. Every major item in the bid should be estimated as precisely as the documents allow.
Below are the steps to work through when developing a detailed estimate.
1. Check the drawings and project manual
When the project documents arrive, go through all of them carefully. Check that every drawing and item in the package reflects the latest addenda.
Numbering and labeling conventions vary between government bodies and architects, but these prefixes apply to most drawing sets:
- A — Architectural drawings
- S — Structural drawings
- M, P, or HVAC — Mechanical drawings
- E — Electrical drawings
If prefixes aren't used, the project will usually have its own drawing coding, most likely explained in the project manual.
The front page of the project manual or drawing set usually lists every drawing in the set. Check all sources against the drawings you have to make sure nothing is missing.
2. Make a mental map of the project
Next, the estimator needs to understand the whole project — what it is and what it requires. Review the drawings to build a mental picture of the project: its size, shape, and exterior details.
An experienced estimator can roughly assess a project this way and note anything unusual that needs to be worked out in more detail. Check the elevations and material requirements.
Do the same with the floor plans. Pinpoint areas with unusual features, especially on building projects. Scan every room from front to back, checking the wall types and dimensions.
3. Review the drawings in detail
Now get into the detailed drawings and start working out the specifics.
Examine the cross sections to assess the material and assembly requirements. Highlight any unfamiliar assemblies or details so you can refer back to them easily.
Review the structural drawings to determine what kind of structural system is required, then work out the concrete, reinforcement, and related requirements. If it's a high-rise structure with columns, beams, and lintels at high elevations, plan for the right construction equipment.
Mechanical drawings include details on steel supports, embeds, underground work, piping, and outlets. Even if mechanical work isn't in your scope, you need to understand its requirements, because openings and provisions may have to be left in the civil works.
You are responsible for anything related to the details in the project manual, so cross-reference your drawing review with the project specifications and any other supporting documents.
4. Visit the project site
To improve the accuracy of the estimate and quantity takeoffs, it's sometimes important to visit the site in person — ideally estimators together with members of the project execution team.
At a minimum, stay in close contact with the project team members who have visited the site.
If your estimator works outside your office, make sure their questions about the site get answered so they can build the best possible estimate. A collaborative effort produces a better bid and strengthens the estimator's ownership of the project.
5. Meet with all the relevant stakeholders
Estimators are experts in their field and rely heavily on experience to produce good bids. Still, to make sure nothing is missed and the estimating team has the best information available, set up meetings with the project team.
Once the drawings have been reviewed and the project information is complete, the project team and estimators should walk through the construction approach together: the expected methodology, team structure, project schedule, equipment, and so on.
This helps the estimators make the most accurate assumptions about overhead costs, production norms, and contingencies.
6. Review the general and supplementary conditions
To cost the job accurately, list every requirement in the general conditions and supplementary general conditions. Compare them with the drawings and addenda to build a complete scope of work.
Next, factor in insurance costs, and send the relevant documentation to your insurer and bonding agency.
7. Prepare the quantity takeoffs
Now prepare the takeoffs: list the items and place the quantities against them. Where possible, follow the structure of the project specifications.
Items should follow the sequence of construction, and units of measure should stay consistent — ideally the same units in which the work will be built.
A workup sheet lists each item with its quantity and cost. It's good practice to list the equipment that will be used for each item, accounting for both your own equipment and rentals, including how long rental equipment will be on site.
Material rates, installation rates, and subcontractor rates must be accurate. Contact each party for current rates on every item, note when each price was issued, and reference them in the terms and conditions of your proposal.
Include all overheads: temporary site facilities, utilities, project supervision, meals, lodging, and similar costs.
8. Quality-check the estimate
Check every item in the workup for correctness — a single mistake can be costly.
Someone other than the lead estimator should review the work; on estimating teams, estimators often review each other's estimates.
The most common mistake is a misplaced decimal point. Other things to check carefully before submission include:
- Calculation errors — addition, subtraction, multiplication, division, and formulas
- Omitted items in materials, labor, overheads, or equipment
- Material waste and general construction waste allowances
- Errors when transferring data from one sheet to another
- New line items that were added to the spreadsheet but left out of the totals
- Estimating software settings, and mistakes in how the software was used
- Productivity factors adjusted to the project specifications
- Errors in material quantity calculations
Once everything is checked and priced, make sure no documentation was missed — confirm with the owner or architect/engineer that you've received every addendum.
Finally, double-check the bid time, date, and submission location. In the rush of bid day it's easy to miss one of them and lose the chance to compete.
Conclusion
Construction estimating and quantity takeoff is a carefully choreographed exercise that has to produce a quality bid on a strict timeline. Every step above needs to be done, and done meticulously — which takes an estimating team whose communication and coordination are tightly in sync.
If you're pressed for time or want to keep a lean organization, an experienced estimating partner can give you that capacity whenever you need a quality bid.