Estimate and bid: two words that are often used interchangeably by customers when referring to the cost of a construction project. However, contractors typically use these words to describe different parts of the process of calculating internal costs and defining the final project cost. The two definitions of these words in fact differentiate and are important to understand prior to construction projects.

An estimate is the overall price of the job–including all expenses incurred in doing the job like materials and labor. Although there are varying types of estimates, contractors should collaborate all levels and carefully determine a number to report to the customer–as customers expect an estimate to be reasonably accurate and relative to the actual cost.

A construction bid is a firm offer directed at a customer in order to allow the construction project to proceed. In this bid, a contractor often specifies a specific construction price and project timeline. If the customer approves the bid, the contractor can then honor their commitment to the project and carry out the work that was described in the bid. Typically, accurate estimates need to be set beforehand to properly place a bid and make a satisfactory profit on the job.

Customers must understand and be willing to comply with the fact that estimates and bids, especially for larger projects, may take significant amounts of time and effort. However, for smaller projects, decisions may be made more quickly. During every phase of a construction project, patience from both parties is key to the success of the structure.

With over three decades of experience, the civil engineering professionals at Jerdon know the notable contrast between an estimate and a bid–and the importance each meaning delivers to a project. Jerdon Enterprise strives to deliver quick yet accurate estimates and bids to clients seeking successful construction projects. Call us today!