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10 Things to Establish in Construction Bids

On Behalf of | Nov 16, 2016 | Commercial Law, Construction Law, Personal injury, Uncategorized |

10 Things to Establish in Construction Bids
What items need to be reviewed in construction bids?

Whether you are building your first home or developing an office building, you want to make sure the company actually performing construction duties is responsible and competent.

Hiring the wrong construction company can result in a lot of issues, some immediate, some that may arise further down the line. Legally, your project could be bogged down in personal injury, construction and/or other commercial suits resulting from a mishandling of construction by the company that was hired.

Whatever the development, there are several things to establish in construction bids before contractors should be considered for the project.

Fair Pricing

Look for prices that are fair when considering construction bids. This does not mean lowest price or biggest savings, nor does it mean overpaying. Have the contractor explain their pricing and make sure their costs can be accounted for.

Change of D/B/A Names

Has your potential bidder changed “doing business as” names multiple times over the past? Find out why.

Permanent Office

Does your bidder have a permanent place of business? How long have they been registered at that address? You need to make sure that they will still be around in case anything goes wrong during the project.

Safety Plan

Construction contractors should have safety plans in place for their workers in the event that something goes wrong on the job. If a bidding company can’t provide a safety plan, they should not be considered for the job.

License & Registration

You absolutely need to make sure that the firms submitting construction bids are licensed and registered. They should be able to produce valid license and you should verify their insurance.


How long has your bidder been in business? While this is not necessarily a deal-breaker, it is nice to know that the construction firm you hire has a proven track-record.

Dispute Resolution

Things are bound to go wrong in construction, even with the most cautious firms. It is important to consider how your bidder has handled or resolved job-related disputes in the past.

Project Details

You and your construction contractor need to discuss who will be handling project specifics, prior to hiring. Establish who gets building permits, who handles code compliance, etc.

Terms of Payment

You and your contractor should discuss all key terms of payment: when payment is distributed upon completion, how payment is distributed and any plan for contingency payments.