The Ultimate Guide to Bids & Estimates for General Contractors
- Nate Jones
- Sep 24
- 3 min read
Winning construction jobs isn’t just about doing great work—it starts with submitting accurate, competitive bids and estimates. For general contractors, mastering the art of bidding is essential to securing profitable projects, building client trust, and scaling your business. Poorly prepared estimates can lead to underbidding, lost revenue, or even legal disputes. But with the right strategies, contractors can streamline their bidding process and win more jobs with confidence.
In this blog, we’ll share proven strategies to help general contractors improve their bids and estimates, reduce errors, and grow sustainably.
Why Bids & Estimates Matter in Construction
Bids and estimates are the foundation of every successful project. They determine whether you win the job, how much profit you’ll make, and how smoothly the project will run. Accurate estimates help:
Build client trust with transparent pricing.
Avoid cost overruns by forecasting labor, materials, and equipment.
Improve profitability by factoring in overhead and contingencies.
Strengthen your reputation with professional, timely proposals.
Strategies to Improve Bids & Estimates for General Contractors
1. Use Estimating Software
Manual calculations are prone to errors. Estimating software like Buildertrend and ProEst helps automate calculations, generate templates, and track costs in real time.
2. Break Down Costs by Category
Divide your estimate into labor, materials, equipment, permits, and overhead. This makes your bid more transparent and easier for clients to understand and approve.
3. Factor in Overhead and Profit
Don’t forget to include business expenses like insurance, office rent, and admin salaries. Add a reasonable profit margin to ensure sustainability.
4. Account for Contingencies
Unexpected issues like weather delays or material shortages can impact costs. Include a contingency buffer (typically 5–10%) to protect your bottom line.
5. Review Historical Job Data
Use past project data to improve accuracy. Look at actual costs vs. estimated costs to refine your pricing and avoid repeating mistakes.
6. Visit the Job Site Before Bidding
Site visits help you assess access, terrain, existing conditions, and potential challenges. This leads to more accurate estimates and fewer surprises.
7. Customize Your Proposal for Each Client
Tailor your bid to the client’s needs, project scope, and priorities. A personalized proposal shows professionalism and increases your chances of winning.
8. Include a Clear Scope of Work
Define exactly what’s included—and excluded—in your bid. This prevents misunderstandings and protects you from scope creep.
9. Use Templates for Consistency
Create branded templates for estimates and proposals. This saves time and ensures your documents look professional and consistent.
10. Follow Up After Submitting a Bid
Don’t just send a bid and wait. Follow up with the client to answer questions, clarify details, and show your interest in the project.
How Contractor Back Office Helps with Bids & Estimates
Contractor Back Office offers tools and support to help general contractors:
Create professional estimates and proposals using customizable templates.
Track job costs and budgets to improve future bids.
Automate follow-ups to stay engaged with potential clients.
Integrate CRM and bookkeeping for seamless financial management.
These services save time, reduce errors, and help contractors win more jobs with confidence.
Protecting Your Projects with Wexford Insurance
Accurate bids protect your profits—but insurance protects your operations. Wexford Insurance offers coverage for:
Combining smart bidding with reliable insurance ensures your business is both profitable and protected.
Conclusion
Bidding and estimating are critical skills for general contractors who want to grow their business and stay profitable. By using software, refining your process, and partnering with experts like Contractor Back Office, you can submit accurate, competitive bids that win jobs and build trust. Add protection from Wexford Insurance, and you’ll be ready to scale your business with confidence.
