What Is a “Hard Bid” in Commercial Construction?
Graphite Construction Group’s core competency is in the “hard bid” arena, in which we have a unique ability to provide exceptional service and cost-efficiency, while maintaining quality construction. But, what exactly is a hard bid?
In short, a hard bid is a competitive bidding process. It is a term used in commercial construction whereby the owner of a project hires an architect to draw up plans and specifications. Once approved, the owner bids the job out to a number of commercial general contractors — who are often pre-qualified — through invitation or advertisement. These contractors then give the owner an estimated cost to complete the project. Generally, the contractor with the lowest price is selected.
The Hard Bid Process
The basic competitive commercial construction bidding process often looks like this:
- A project owner seeks bids from qualified commercial contractors.
- Those commercial general contractors take bids from subcontractors (this can also occur after a bid is selected).
- The commercial contractors submit bids by a specified deadline.
- The project is awarded to the lowest bidder.
- A formal contract is created and agreed upon.
- Pre-Con meeting takes place to review schedule, timeline and specific scopes of the project.
- Construction begins.
Hard Bids in the Public Sector
Hard bidding is the preferred bidding method in the vast majority of government-funded projects. In the private sector, bidding competition is completely optional. However, in the public sector, competition is highly preferred, since government contracts are generally funded by public tax dollars. Commercial contractors competing in this arena must follow a unique set of rules and procedures, and failure to do so may result in civil or criminal penalties. Because of this, commercial contractors working on government-funded projects must be experienced, thorough and knowledgeable.
For more information on competitive bidding or to learn how Graphite Construction Group can help with your next commercial construction project, contact us today!