In construction, the bidding process is the main way general contracting firms invite subcontractors to bid on work the general contractor wants to subcontract out. General contractor’s contract out the majority of site work to subcontractors, so the bidding process is an incredibly integral part of a construction project. This process allows general contractors to hire subcontractors at a competitive rate.
- General contractors send bid invitations to subcontractors.
- Subcontractors receive a bid package that outlines the scope of work that needs to be complete.
- Subcontractors download bid documents and review the project information based on their cost codes.
- Subcontractors submit their bid to the general contractor of the project.
- General contractors award a bid to the subcontractor with the winning bid and convert it to a commitment.