Create Construction Bids in Excel
Are you searching for a fast and easy way to create a budget worksheet for your construction project? Do you want to learn how to create a template in Excel? If so, you will find a great step-by-step guide here.
If you don’t have Excel on your computer now, you can utilize the online version for free if you have a Microsoft account.
When you browse the Microsoft Excel template library, you can find all types of pre-made options for a construction bid template. These offer the perfect foundation for a comprehensive construction bid that will help you show your costs.
What Are Construction Bids?
Construction bids are documents that developers submit to possible customers that detail the potential cost, scope, and schedule for a building project. The goal of the bid is to “win” a contract over other developers.
The customer usually requests bids from a few developers and evaluates the information to choose the one they believe offers the best value for the price.
Having a properly organized and well-written construction bid is important. In fact, it can make or break if a builder is hired for a project. The builder with the fastest work schedule and lowest cost estimate won’t win if they don’t provide the necessary information to a customer.
If you do manage to secure the contract with a poorly written bid, it may result in mistakes, miscommunication, and waste as the project progresses.
The Process of Creating a Construction Bid Using Excel
The step-by-step process to create your construction bid with excel includes the following:
- Navigate to Excel on your computer
- Click Setup Templates
- Create a name for your template in the “Template Name” field
- Choose the Browse button to choose the existing spreadsheet you have open
- Add or remove the necessary fields from the Available Fields that is found to the left of Selected Fields on the left with the arrow buttons found in the middle
- Press F2 to save
- Press the Close Button
- Choose Export
This will provide you with a template to start using for your construction bid. However, if you are like most people, you will likely need some tips regarding what to include in the bid.
Review the Scope of Your Project
One of the first things you should do is review your project scope. You can’t start writing your estimate unless you understand this.
That’s because you may discover that the client is not 100% set on what they are looking for. Getting this information from them is necessary before you create your bid. You should also determine the following:
- What services can you offer, and if you need to hire subcontractors
- What will your costs be
- If they want a total breakdown of the costs or just a total price
- The projected completion date
- Your expectations for the project and the client’s expectations
To figure out this, you may need to conduct a site visit to see what will be involved. Doing this will also allow you to create a relationship with the prospective client.
Create a Timeline for the Project
In your estimate, you should outline the approximate timeline that provides your client with a projected completion date. It’s important to give your client a general idea of how much time they can expect the work to go on; however, you can also estimate the labor costs.
It’s a good idea to be somewhat liberal with the dates, letting you manage your client’s expectations without providing a specific date. Remember, things will change, and you don’t want to find yourself under a lot of pressure to get this job done when circumstances are impossible.
Figure Out What Work You Will Subcontract Out
In many projects, you won’t be able to handle all the work on your own. You may need to hire a plumber or electrician to help you finish the project. In this situation, it’s necessary to subcontract workers to handle these jobs.
It’s necessary to factor this into the timeline and cost estimate you give your customer.
Create Your Estimate for Material Costs
You should remember that costs can change. This is especially true for materials that are harder to get. As a result, you must shop around and get a general idea of the quantities and costs of the materials you will need.
However, make sure you stay flexible about this and don’t over-estimate too much. This may put the client off.
Look at Your Competition
When you create an estimated price, you should look at the competition and do some research to determine what others price their materials and work at. By doing this, you can remain competitive, and it may help you get even more clients.
Be careful you don’t make your bid too low, as this will reduce your profit margins significantly. In the long run, you may actually lose money.
Outline Your Set Terms and Conditions in the Bi
The estimate should also include the terms and conditions of the services and inclusions and exclusions. This is crucial to make sure there aren’t any surprises for your potential client in the future.
Be sure the terms and conditions that you use for your estimate are very specific and that your client will be able to understand them.
Keep the Estimate Professional
Now that you know how to create an estimate in Excel for a construction bid, you must ensure it looks good. Be sure that you use professional wording for the estimate and avoid using estimate jargon or any abbreviations that your customers won’t be able to understand.
Using Excel to Create Construction Bids
If you need additional guidance regarding how to use Excel for creating construction bids, get in touch with our team. We provide free consultations and can help you get the results you need for your project. Call to schedule your estimate at 1-833-335-0665.