Estimating & Profit Margins
How do I bid commercial construction projects without scope gaps?
A scope gap is work the project needs that nobody priced. It surfaces in the middle of the job, and the general contractor will read the contract to decide who pays. To bid without scope gaps, read every document that touches your trade, write down what you include, what you exclude and what you assumed, and ask about anything unclear before bid day, in writing.
Where gaps come from
- Between trades. Who firestops the penetrations? Who cuts and patches? Who supplies access panels, backing, starters, disconnects, final connections?
- Between drawings and specifications. The drawings show one thing and the spec section requires another. Many contracts say the stricter one governs.
- In documents outside your own section. Division 01 (general requirements) sets rules for cleanup, hoisting, temporary power, working hours, submittals, testing and closeout that apply to everyone.
- In addenda. A change issued three days before the bid that never reached the estimator.
- In the bid form itself. Alternates, unit prices and allowances you did not answer.
A reading order that works
- The invitation and the bid form. What they want priced, and how.
- Division 01. Everything the general conditions push onto subcontractors.
- Your own specification sections, start to finish, including "related work" and "work by others."
- Sections next to yours. The work that meets your work is where the gaps are.
- All the drawings, not only your trade's sheets. Architectural, structural and the other trades show things your sheets leave out.
- Every addendum. List them by number in your proposal.
Write the scope letter
A price with no scope attached is an invitation to argue. A good proposal has four short lists.
- Inclusions. What you are furnishing and installing, by drawing and spec section.
- Exclusions. What you are not doing. Be specific: "painting of exposed pipe," not "work by others."
- Clarifications. How you read anything unclear: quantities assumed, working hours, number of mobilizations.
- Assumptions. Site access, a clear work area, schedule dates, material prices held until a date.
The items below are worth a line in almost every commercial proposal:
- Permits and fees
- Sales tax
- Bonds
- Hoisting, lifts and scaffolding
- Layout and survey
- Temporary power, water and heat
- Dumpsters and daily cleanup
- Cutting, patching and firestopping
- Testing and inspections
- Overtime and off-hours work
- Number of mobilizations
- Winter conditions
Ask before you bid
A question asked in writing before the bid costs nothing. The same question after award is a change order request the GC does not have to accept. When the answer does not come in time, state your assumption in the proposal.
Walk the site when you can
Existing conditions, access, parking, storage and working hours never appear clearly on drawings. Half an hour on site answers questions that would otherwise become assumptions.
Compare the subcontract with your proposal
After award, read the subcontract's scope exhibit against your proposal line by line. If your exclusions are missing, get the proposal attached as an exhibit or the exclusions written in. The signed contract is what counts later.
Keep a checklist and add to it
Every gap that ever cost you money becomes a line on your bid-day checklist. In two years that list is worth more than any template.
Where ConstructStream fits
ConstructStream builds estimates from your own saved products, each with its labor, materials and phases, so a line is not retyped from memory on every bid. The client accepts the estimate online and the accepted version is kept. Once the job starts, RFIs and change orders are tracked on the job, where the answer and the approval can be found later.
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