Setting the Bid Unit Price: 2 Main Reasons for Unbalancing

Executive Summary Setting of bid prices on a unit price bid can have significant effects on the financial performance of a project. Set your unit prices in your proposals to have positive impact. Be strategic. Balanced Bid PricesA balanced bid price is when each of the bid items shares equally […]

You Better Honor Your Bid on Bid Day Mr. Subcontractor

Executive summary.  As a general contractor you can rely on your subcontractor’s bid on bid day as a binding agreement.  But not in all states. Read on to learn about protection granted by the Doctrine of Promissory Estoppel.  Call your attorney.  I’m not a lawyer, and I don’t know what […]

Shhh, You’re being Recorded – and Two Other Tips

Executive summary. Just three random important things for contractors that didn’t make up an article all on their own: the legality of audio recording, running one man short, the golden rule of bid forms. What’s this article about? It’s about being a smart contractor in the easiest of ways. Learn […]

Wanna Eat? Help me Kill

Executive summary. Maintaining employment is a factor of your performance, but for construction and engineering firms it is largely dependent on a firm’s ability to bring in project after project. Who’s responsible for bringing in these projects? The answer lies below. The business model. Construction and engineering firms usually do […]

Introduction to Contractor Estimating

Executive Summary.  The reader is introduced to the process of contractor estimating from initial project evaluation through the call for bond, the takeoff, the actual estimating of a civil project, an even the turn in of the bid. Bid Evaluation and call for bond.  Contractors consider many facets of a […]

Including the Portion of Corporate Overhead in a Bid

Executive Summary:  Determining how to account for the portion of corporate overhead to be included in a bid is a calculation that every company makes a bit differently.  Learn the definition of corporate overhead and how it is included in a bid. What is corporate overhead? Corporate overhead is the cost […]

Bid Unbalancing – How It’s Done To Increase Profit

Executive Summary Contractors unbalance unit prices in their bids to take advantage of anticipated quantity overruns and underruns. An intelligent unbalancing of the unit prices can result in higher profits. Of course, that’s the contractors’ goal. Review the example provided to see how it’s done. The Bid Proposal Let’s look […]