Tips on Bidding for Contractors 

If just had a great meeting with a client about a home improvement job, now is the time for you to provide an estimate for the project. It’s important to put your bid in writing for the homeowner to review. 

When it comes to writing a bid, it’s important to be clear and communicate effectively so that your proposal is taken seriously. Consider it your business pitch. 

Here a few tips for creating a winning proposal for a job: 

—Presentation counts. In most cases, the format of the bid is up to you, but presentation is important. Use a professional letterhead on white-colored, business-grade paper. On the first page, be sure to include your name (or your company’s name), the client’s name, the address of the project site, and the bid date. Write a short executive summary that provides an overview of the project, as well as your professional qualifications (including any licenses you hold) and/or relevant work experience. Offering the bid in person is always more effective than mailing or emailing it. 

–Be detailed about the scope of the work. Provide the client with a detailed description of the work you will perform. The estimate, or quote, shouldn’t be buried; it should be easy to find. Be sure to include the number of hours that the project will take, the date that the project will be substantially completed by, and what the final product will look like. A project timeline should include any inspection work that’s required. Project changes are inevitable, so be sure to spell out any uncertainties that could cause potential delays, especially if you’re working on multiple projects at the same time.  Explain if subcontractors will be used, as well.   

–Be clear about costs and how you’d like to be paid. Your bid should show the client how much materials will cost, and what your hourly wage is. When determining the cost of materials, be sure to factor-in time spent purchasing and transporting them.Be clear about payment terms, including any initial deposits, partial payments, and final payment. Note how long the estimate is good for, as materials prices change over time. 

—Don’t undercut your work by under-bidding; an unrealistic bid could lead to cost overruns, delays, and complaints. It’s important to be tactful: Don’t ask to see any competing bids; it might make the client doubt that you’re giving them the best price possible. And while it’s important to feel confident you’ll be paid once the job is complete, avoid asking for personal information that’s TOO personal, such as an individual’s credit score, employment status, the bank they use, etc. 

—Be timely. By offering a bid within 2-3 business days, you’re letting the client know you’re serious about the job. Not getting back to the client within 5-7 business days will likely hurt your chances. Once the bid is approved, it’s time to draft a contract.   

Before you submit your bid or take on any jobs, make sure you have all the right contractor licenses to perform the job. A Florida contractor licensing company , like our team at Licenses Etc. can help individuals and companies navigate the state’s licensing requirements, with approvals as quick as 10 days. For more information on Florida contractor requirements or to get an application started, visit our Florida contractor licensing page. or call 239-777-1028.