Bidding and estimating

1. BIDDING AND ESTIMATING
presented by:
Victor Zhang P.E., Senior Estimator – Dragados USA
Gulf Coast Connectors
A Workshop Module of the
Bonding Education Program
U.S. Department of Transportation Office of Small and Disadvantaged Business Utilization
In partnership with the Surety and Fidelity Association of America

2. • Fixed cost contract for all materials, labor, profit, and overhead
Lump Sum
• Contract is for actual cost of labor & materials plus a fixed fee for the contractor
Cost + Fixed Fee
• Contract is for actual cost of labor & materials plus a fixed percentage to cover overhead & profits
Cost + % Overhead & Profit
• Contract has an agreed to cost for labor and materials plus a maximum dollar cap
Time & Materials (T&M) (Not to Exceed)
• Contract has an agreed to value between the contractor and the owner. This cap cannot be exceeded
GMP (Guaranteed Maximum Price)
• Contract is organized into individual scopes of work which can increase decrease within reason during execution
Unit Price
Types of Bid Proposals
It is important to
understand the
different types of
bid proposal
structures as each
type has unique
risks and
opportunities.

3. Bid Preparation
Important
information such
as bonding and
submittal
requirements as
well as applicable
government and
regulatory
requirements are
all contained in
the specifications

4. Bid Composition
Bid
Proposal
Response to
Scope of Work
Inclusions &
Exclusions
Special
Conditions
Quoted Price
Project
Schedule
Bonding
Requirements
Subcontracts

5. Quoted Price
Direct Cost
Labor
Equipment
Materials
Construction Material
Permanent Material
Subcontract Cost
Indirect Cost
General Conditions
Mobilization
Insurance
Bond
Overhead & Profit
Risk & Opportunity
Staff
Office
Estimate Structure

6. Do Homework
Consult Industry Peers
Check References
Check Online Data
Make Preparations
Make Bid Packages
Set Up Tracking System
Make Bid Comparison Sheets
Select A Vendor
Send Out Requests for Proposals
Compare Bids from Vendors
Select Best Value Vendors
Incorporate into Your Bid
It’s good practice to keep vendors in the loop on the status of bids
even after you’ve submitted your bid to the client.
Maintaining a productive professional relationship is beneficial for
everyone!
Subcontractor Selection

7. Hire Trained
Estimators
Utilize
Estimating
Software
Perform Take-
off & Pricing
Review &
Check Estimate
Assemble Bid
Package
Check All
Required
Documentation
Markup &
Complete Bid
Submit Bid
Package
Bid Preparation
Checking that all
bid requirements
are met by the
final submission is
critical!

8. Quotation Examples

9. Quotation Examples

10. Quotation Examples

11. • Make an Effort to Establish
Lasting Relationships with
Vendors
• De-brief After Each Bid
• Continue Estimator Education
• Incorporate Project Experience
• Create Estimating Instructions
• Create Standard Comparison
Sheets
• Incorporate Lessons Learned
• Keep Database of Past Estimates
• Log Past Sub/Supplier Quotes
Maintain
Database
Create
Standard
Estimating
Protocol
Maintain
Vendor
Relationships
Team
Development
Moving Forward