.svg)
Bid Prices
What are Bid Prices?
Bid prices in the construction industry refer to the amount a contractor proposes to charge for a particular project or service tendered by a client or project owner. These prices are usually determined after the contractor carefully assesses the project's scope, requirements, and the associated material, equipment, labor expenses, and overheads. The bid prices are essentially the predicted cost of the project plus the profit margin of the contractor. The client or project owner usually picks the contractor with the most comprehensive and competitively priced bid, assuming all other important factors like experience and capability are deemed satisfactory. It's noteworthy that bid prices can be subject to negotiation, and post-bid changes could occur following project change orders or unexpected construction conditions.
Trusted by trade contractors across the country
Other construction terms
What is a Lender?
A lender, in the context of the construction industry, is a bank, financial institution, or a private individual that provides funds for construction projects. They lend money with the understanding that the amount will be returned, often with interest, as per the terms of a loan agreement. The borrower can be a contractor, real estate developer, or a homeowner needing funding for a building or renovation project. Lenders assess the viability of the projects and the borrower's solvency before loan approval. They play a vital role in construction financing, facilitating economic growth by enabling infrastructure development. They also manage risks by using construction loans that follow a draw schedule that matches the construction stages, ensuring the project's timely completion. Ultimately, lenders power the various construction operations, providing necessary liquidity and fostering business growth and expansion.
What is Breaking Ground?
Breaking Ground, in the context of the construction industry, refers to the initial stage of a new construction project. This process often commences with a ceremonial event, typically involving the initial digging into the ground, symbolizing the beginning of the construction project. It is the first step towards site preparation which involves various tasks including soil testing, land clearing, excavation, and leveling among others. Breaking ground signifies the transition from the planning and designing phase into the physical building phase of a project. The event is usually marked with utmost importance as it indicates the project's commencement and is often attended by the project stakeholders, from contracting company representatives to local government officials. This signifies the beginning of the transformation of a blueprint into a tangible structure.
What is Overbilling?
Overbilling refers to the unscrupulous practice of charging more than what is warranted for materials or services in the construction industry. This can occur when a contractor bills for more material than what was actually used or invoices for labor and time that was not appropriately utilized or not used at all. Overbilling can have serious fiscal impacts on projects and can lead to legal consequences if discovered. The clients have to scrutinize the billings accurately to avoid falling victim to overbilling. Thus, overbilling is not an ethical practice and is discouraged in the construction industry. It not only hurts the client financially but can also damage the reputation and trust between parties involved in a construction project.
Ready to end the fire drill and get paid faster?
