What is the purpose of a construction bid?

The purpose of a construction bid is to outline the estimated costs and scope of work for a construction project. This document serves as a formal proposal from a contractor to a client, detailing what work will be performed, the materials that will be used, and the overall budget for the project. In a competitive bidding situation, multiple contractors may submit bids, allowing the client to compare pricing and services offered. A well-prepared bid not only provides transparency regarding costs but also establishes the expectations for the project, helping both parties understand the scope of work involved and reducing the likelihood of disputes later on.