How Do Bid Packages Work?


Have you ever seen scenes of a bid on TV? Some funky person who was probably an outcast in high school (kudos to them for that!) speaks really fast while trying to get a bored audience to lift a little sign with a number. Whoever lifts a sign with the highest number, wins the bid and gets to purchase the item.

That is not how bidding works at all in the construction industry.

When do they come into play?

         Bids apply whenever a government agency needs to make a purchase or start construction, expansion, or renovation project. The agency will post a description of the project they intend to execute. Each state has a different website, so you’ll need to check on the site in the State you’re located.

Review the Bid Solicitation:

The government agency will include information about the project: What needs to get done, a timeline, their budget, and everything else that’s related to the project. Pay attention to every single detail, to prevent from getting overly excited and lowballing your bid.

How does the government choose their contractor?

         Every company submitting a bid, also provides a Capability Statement, which states their company history (certifications, past projects, accomplishments, biggest clients, awards, etc…) It’s pretty much a pitch: “We’re the best company to do this project, and this is why…”.

All of this is hilarious, considering that despite Whitefish Energy being a two-person company in the boonies in Montana, with no prior large scale project experience, they got a $300 million contract to restore the power grids in Puerto Rico after hurricane María. But who has ever heard about apparent shadiness in government dealings, right?

But I digress. Let’s get back to an explanation of how things are supposed to work: Pay attention to every detail on the bid solicitation and attached schedules. Pay extra attention to the deadline for submission. Make sure that any subcontractors you’d need to hire are within your budget. If you get the bid, congratulations! It’s time to get the party started. If you didn’t, look at who did, and find out why. Practice makes “perfect” (there is no such thing as perfect; but you can at least try to get as close to it as possible).

If you just read this for entertainment purposes or because the magazines at the grocery store line were a dud, thank you for visiting our website. If you actually need construction or renovation services, contact us. Eclipse Building Corp. is always happy to help!