Glossary
Construction Estimating & Bidding Glossary
Plain-English definitions of the terms estimators, project managers and subcontractors use before and after bid day.
Understanding bidding terminology helps you read a solicitation correctly and submit a complete, responsive bid. Browse 47 terms covering pre-bid, post-bid, solicitations, submittals, shop drawings and prevailing wage.
A
- Addendum
- A written change to the bid documents issued before bid opening — revised drawings, new specifications, added alternates or changed dates. Bidders must acknowledge each addendum, usually on the bid form.
- Allowance
- A dollar amount set by the owner and carried in the bid for an item that is not yet selected or fully defined, such as finish hardware or lighting fixtures.
- Alternate
- An optional change to the base bid — an addition or deduction — that the owner may accept or reject, priced separately on the bid form.
- As-built drawings
- Drawings that record how the work was actually built, updated from the contract drawings to show field changes.
B
- Base bid
- The price for the work described in the bid documents, before any alternates are added or deducted.
- Bid bond
- A form of bid security issued by a surety that guarantees the bidder will enter into the contract and provide required bonds if awarded.
- Bid form
- The document in the solicitation on which bidders state the base bid, alternates, unit prices, allowances and acknowledge addenda.
- Bid leveling
- Adjusting competing subcontractor or supplier proposals to a common scope, so differences in inclusions and exclusions do not distort the comparison.
- Bid tabulation
- A table of all received bids showing base bids, alternates and unit prices, typically published after a public bid opening.
- Bulletin
- A document issued after award that revises the contract documents, often priced as a change order.
- Buyout
- The process after award of issuing subcontracts and purchase orders and comparing committed costs to the estimate.
C
- Certified payroll
- A weekly payroll report, signed under penalty of perjury, that shows workers, classifications, hours and wages on a prevailing-wage project.
- Change order
- A written amendment to the contract changing scope, price or time.
- Contingency
- A sum included in an estimate to cover unforeseen costs and uncertainty in the design or conditions.
- CPM (critical path method)
- A scheduling method that models activities and logic to identify the longest path through the project and the float available on other paths.
- CSI MasterFormat
- A standard system of numbers and titles for organizing construction specifications, cost data and bid packages into divisions and sections.
D
- Davis-Bacon Act
- A federal law requiring payment of locally prevailing wages and fringe benefits to workers on covered federally funded or assisted construction contracts.
- Division 01 (General Requirements)
- The CSI division containing project-wide administrative and procedural requirements such as submittals, temporary facilities, quality control and closeout.
F
- Fringe benefits
- Benefits paid in addition to basic wage rates, such as health insurance and retirement contributions, included in prevailing-wage rates.
G
- General conditions
- The project-wide costs of managing the job — supervision, temporary facilities, insurance, safety and cleanup — that are not tied to a single trade.
I
- IFB / ITB
- An Invitation for Bid (or Invitation to Bid): a sealed, price-based solicitation usually awarded to the lowest responsive and responsible bidder.
L
- Liquidated damages
- A daily amount in the contract that the contractor owes if the project is not completed by the required date.
M
- Material takeoff
- The measured list of materials and quantities taken from the drawings and specifications, before pricing.
N
- Notice of award
- The owner's formal notice that a contract is being awarded to a bidder, normally followed by contract and bond execution.
- Notice to proceed
- A written instruction from the owner to begin work, which usually starts the contract time.
O
- Overhead and profit
- Markups added to direct costs: overhead covers the contractor's indirect business costs and profit is the return on the work.
P
- Performance bond
- A surety bond that guarantees the contractor will complete the work according to the contract.
- Pre-bid conference
- A meeting before bid day where the owner explains the project, schedule and bid procedures and answers questions.
- Prequalification
- A review of a contractor's experience, capacity and financial strength before it is allowed to bid.
- Prevailing wage
- Minimum wage and fringe benefit rates, set by a government agency, that contractors must pay on certain public projects.
Q
- Quantity takeoff
- The process of measuring and counting the work from the drawings — areas, lengths, volumes and counts.
R
- Responsible bidder
- A bidder with the capacity, experience, licenses, bonding and financial ability to perform the work.
- Responsive bid
- A bid that conforms to the solicitation: complete forms, priced items, acknowledged addenda, required security and signatures.
- Retainage
- A percentage of each progress payment withheld until the project reaches a milestone such as substantial completion.
- RFI (request for information)
- A written question that clarifies a conflict, omission or ambiguity in the drawings or specifications.
- RFP (request for proposal)
- A solicitation that evaluates qualifications, approach and price against stated criteria and may allow negotiation.
- RFQ (request for qualifications)
- A solicitation used to shortlist firms by experience and capability before a price or proposal stage.
S
- Schedule of values
- A breakdown of the contract price by work item used to prepare progress payment applications.
- Scope sheet
- A trade-specific checklist sent to subcontractors so every proposal responds to the same inclusions and exclusions.
- Shop drawings
- Detailed drawings prepared by the contractor, subcontractor or fabricator showing how part of the work will be fabricated and installed.
- Specification section
- A written description of products, workmanship, testing and submittals for a portion of the work, organized by CSI division.
- Submittal
- Any document submitted for review under the contract, including shop drawings, product data, samples, mock-ups and test reports.
- Substantial completion
- The stage when the work is sufficiently complete for the owner to use it for its intended purpose.
U
- Unit price
- A price per unit of work (for example per cubic yard or per linear foot) used to adjust the contract when quantities change.
V
- Value engineering
- A review of alternative materials, systems or details that reduce cost without reducing required performance.
W
- Wage determination
- An official document listing the prevailing wage and fringe rates by classification for a locality and type of construction.
- Work breakdown structure (WBS)
- A hierarchical breakdown of project work used to organize estimates and schedules.
Need help with a bid?
Pre-bid, post-bid and solicitation support from the Bid Sharp team.
Bid Sharp at a glance: 3 steps, 50 states
Bid Sharp prepares construction estimates, takeoffs, shop drawings, structural and permit drawings and schedules for contractors and homeowners in all 50 states, on public and private projects. Typical turnaround is about 48 hours; the turnaround and a firm price are confirmed before any work starts.
- 1. Upload plans. Send PDF, DWG or a plan-room link with your bid due date.
- 2. Get a firm quote. Scope, price and turnaround in writing, with no obligation.
- 3. Receive deliverables. Excel and PDF files, plus DWG for drawings, checked by 2 team members.
Quick answers
How do I get a quote?
Upload your plans on the contact page; we reply with scope, price and turnaround before work begins.
Which states and trades do you cover?
All 50 states and CSI Divisions 01–33, plus solar. See services and locations.
Do you submit bids for contractors?
No. We prepare the takeoff, pricing and documents; the contractor reviews, signs and submits the bid. Read the FAQ.
Standards and official sources
Rules, wage rates, codes and procurement procedures change and differ by agency. Confirm the requirements that apply to your project with these primary sources and with the solicitation itself.
Keep exploring
Last updated by the Bid Sharp estimating team.