Finding Projects

• The federal government, counties and municipalities have vendors' lists for contractors who have an interested in bidding on government contracts. Visit the local city hall, call or go online to find out how to receive notices of upcoming projects and the procedures for submitting proposals. Private vendors also offer print and electronic access to reports that lists construction projects across the country. Buying a membership with these vendors entitle contractors to receive a list of available projects. The data covers most construction specialties from pre-planning to the project's start. Vendors categorize projects by niche, geography, valuation and construction stage. The contractor can find other information about projects, such as general contractors, architects, owners and locations. The reports also include full project descriptions.
  
  

Project Selection Phase

• Sometimes, a construction project owner sends out an open invitation to all vendors interested in bidding on a contract; however, contractors must meet certain pre-qualifications. It's up to individual contractors to decide if the project fits their skills and abilities and whether to go forward. If the contractor finds the job appealing, the next step consists of determining what methods and equipment the project would require. Then, put together a preliminary project proposal outlining the schedule for the major components of the job. Finally, the contractor must compute the direct costs of labor, materials, subcontractors, overhead and profit margin.
  
  

Bid Preparation

• The scope of the job determines the cost for materials and labor for the project. The contractor must figure out the monthly overhead and profit margin for the job. The overhead consists of numerous costs involved with running the construction business, including, rent, gas, vehicle, water, electricity, phone, supplies and employee wages. In addition, the owners of the company must compute an hourly wage and figure the monthly amount. Divide the owners' monthly wages into the monthly overhead expenses to figure out the percentage of overhead to add to the materials and labor.
  
  The most clear-cut method for determining the profit margin entails deciding how much profit the business wants to earn each day. For example, if the contractor selects a $150 profit per day, simply multiply $150 times the number of days it takes to complete the project.
  
  

Winning the Bid

• After winning the bid for a construction, the contractor must secure bonds, licenses, worker's compensation and liability insurance. The general contractor must also prepare a preliminary schedule for the major activities of the project. The general contractor also has to convert the winning bid into a project budget and put a system into place for monitoring and tracking project costs. In addition, the contractor must mobilize and coordinate the necessary on-site resources, such as temporary building, utility services, equipment and labor. After completing these tasks, the contractor can move forward with the first phase of the field construction.