Creating a Bid Package That Gets You Solid Estimates
Part One of a Five-Part Series: Getting Estimates and Choosing a Contractor
Kickoff
It’s one of the biggest questions for owners: how to get good estimates for your construction project, and how to choose a contractor. Everyone knows it’s important, but most people have no idea where to start, or how to determine whether the answers they’re getting are good, bad, or ugly.
So…I decided to do something new around here: a 5-part series covering this topic! As many of you know, I was a construction estimator and project manager at a general contractor before I became an architect, so I know firsthand how to read construction estimates - because I did them myself! These days, in my architectural practice or GC-ing my own projects for my real estate investments, I see that experience now through the eyes of an owner.
So what will we be covering?
Creating a Bid Package That Gets You Solid Estimates
Finding and Interviewing GCs
Comparing Estimates: The Basics That Get You 80% of the Way There
Comparing Estimates: Creating a Bid Normalization Spreadsheet
Contract Structures: Fixed Price or Cost Plus?
This will be mostly geared towards residential projects, and small-medium multifamily/commercial projects. Larger projects have a language all their own, and while the concepts I’ll be discussing still apply, there are often special considerations.
As usual, be sure to discuss any of this with your project professionals and/or legal advisors – things can vary widely depending on what jurisdiction you’re in. This is meant to be an *overview,* not a comprehensive analysis. Believe it or not, there is *a lot* more to all these topics than I’m able to cover even in five newsletters. But this is a great start!
Ok, let’s dive in!
First, some resources!
My brand-new Outline Specification Template! It’s 5 pages of actionable, editable organization – all to help you get better, more accurate quotes from builders and GCs on your projects. I was a construction estimator before I became an architect…and this document is grounded in what I wish architects would have told me! [Read below for more info about what a “specification” is and how it can help you get better estimates!]
My new podcast! Called “Home: The Second Story,” my co-hosts and I interview owners who’ve recently been through a major renovation project or new build, and they share their hard-won wisdom – and what they’d do differently, knowing what they know now! Get it wherever you listen to podcasts [Apple, Spotify, YouTube, etc.]
Ok, NOW let’s dive in!
Estimates 101 [Part 1]: Creating a Bid Package That Gets You Solid Estimates
One of the first things I learned as a construction estimator was “garbage in, garbage out.”
My estimates could only be as good as the materials I was provided by the owner. If they gave me a napkin sketch and a vague description [“we want not the low end, but nothing gold-plated – just solid quality and middle of the road” – my guy, that’s literally what everyone says]…well, my estimate wouldn’t be nearly as accurate than if they gave me a solid set of preliminary drawings and an outline specification.
It only makes sense – the level of accuracy you can expect back from an estimator is equal to the level of accuracy you’re providing them.
And sometimes you’re only looking for that 30,000 foot view – just a quick take – just a “is this a $1mm project or a $5mm project?” That’s totally fine. But what usually happens is that owners only want to provide the 30,000 foot level of information [because providing more than that will cost them money], but they *expect* accuracy down to the dollar.
You have to spend money with actual design professionals to create a package that an estimator can price more accurately. Think about it this way: if you’re about to make a million-dollar decision, wouldn’t you want to invest at least a few thousand dollars to make sure it was the right one?
So yes, you need to hire qualified professionals to put together a “bid package” that you can use to get quality estimates from contractors with.
If you’re not sure how to find an architect to work with, and what they should cost, read up on those topics here:
Working with your design professional, here’s what should be included in a bid package:
» Site plan/basic zoning analysis
Depending on the project, this can be quite simple – especially if it’s a renovation that doesn’t include changing the footprint or the exterior of the building. Keep in mind, though, that in some jurisdictions, adding square footage in the form of finishing an attic or basement could trigger a zoning process.
For larger projects or projects that include significant sitework, it’s wise to get a schematic site plan from a civil engineer, as sitework, utilities, foundations, stormwater management, road work/parking, etc can get quite costly.
» Building floor plans
At least the ground floor and one typical upper floor plan [if the building is a multi-story apartment building with repeating floors], and all floors if it’s a renovation or the floors are all different.
If the building is a renovation, also include demolition plans, so the estimator has a sense of how much of the original building is changing. The floor plans can be largely diagrammatic, and just give overall dimensions, basic layouts of kitchens/bathrooms, etc. They should include window and door locations, and rough indications of major structural elements.
» Exterior elevations
These aren’t always necessary, and can often be a distraction. A good estimator can extrapolate from the plans, as long as she has the floor-to-floor heights, structural system, and windows laid out in plan.
Elevations get into design elements that can bog the owner/design team down in decisions that aren’t necessary to get a ballpark price. This can be hard for owners to resist – they want to know what the building “looks like,” but that takes time and effort [read: fee] for the design team.
» Building section
This, too, isn’t always necessary, but can be quite helpful if the building has tricky sectional moments. It can also be a quick and clear way to illustrate the structural strategy, envelope components, and/or concepts around MEP systems.
» Images
Renderings take a lot of time, and like elevations, can be a distraction. We’re looking for the most efficient ways to convey the most crucial information to get ballpark pricing, not perfectly rendered images – save those for when you need to get investors onboard, or for presentations to neighborhood groups, HOA, preservation/planning/design/zoning boards!
Instead – find a few images online [or using AI – carefully!] that illustrate the look, materials, and vibe you’re going for. Carefully chosen images will communicate just as much to your estimator as a fancy rendering, and take a fraction of the time.
» Outline Specification
This might be the most important element of the package! And it’s why I built a template to help you out…download it here.
Organizing the project information by division [if you’re not familiar with MasterFormat, it’s the construction industry’s common language for communicating and organizing every scope on a project]. For every single material, element, piece of equipment, and scope of work, there’s an assigned number. Most residential and smaller commercial GCs don’t get too far into the weeds with using MasterFormat, but almost everyone knows the “16 Divisions” – the basic way that construction projects are organized and broken out.
The single biggest factor for getting accurate estimates? Presenting as much information as clearly as you possibly can.
An Outline Spec helps you do that – and helps dispel any assumptions the GC might be making. It also – crucially – allows you to compare scopes of work across categories. So, how much each electrician is charging, how much each framer is charging.
You *do not* want a lump sum number, you want it broken down. Asking for a “16 division breakdown” is perfectly reasonable, even in early stages of estimating.
Conclusion
So there you have it – those are the things you should include in your bid package. Remember, the more detailed you are, the more accurate the estimator can be with their response. That said, there’s a fine line – you don’t want to overwhelm them with tons of information that isn’t needed at this stage.
Working with a seasoned design professional – who does similar work and is familiar with the area – will ensure you’re threading that needle properly.
Stay tuned for the next installment: Finding and Interviewing GCs: The Walkthrough – coming next week!
And don’t forget to check out my new podcast, and the downloadable resources over at Runcibleshop.com! And thank you, as ever, for your support. Please share with someone you think would enjoy this newsletter!
Loving this series and can't wait for the next installment! It's so timely--I'm PMing my first major residential reno and literally reviewing bids with the Owner tomorrow. Thanks Marylin!