Mastering the Bidding Process

For a professional in the remodeling industry, bidding is a necessity. But that doesn’t mean it’s not
filled with difficulties. Here’s a list of fundamentals every remodeler should consider when going
through the bidding process.

Preparation and Research

Before starting any bid or proposal, it is essential to tap into market knowledge. Remodelers should
have a baseline for current market trends, materials costs, and labor rates. As you begin a specific
bid, clearly define the project scope. This includes understanding the client’s needs, desired
outcomes, and any constraints.

Cost Estimates
Create a detailed estimate that breaks down labor, materials, overhead, and profit margins. This
level of detail helps clients understand the bid and reduces the chance of misunderstandings later.
Always include contingency funds that can be applied to unexpected costs. Contingency funds
help manage client expectations and prevent financial strain on the remodeler.

Proposal Writing
A well-structured proposal should be clear, professional, and tailored to the client’s needs. Include
the scope of work, materials to be used, timelines, and payment schedules. Incorporating visuals,
such as sketches or renderings, can help clients envision the project and enhance the proposal’s
impact.

Communication
Maintain open lines of communication with clients throughout the bidding process. This includes
asking clarifying questions and addressing any concerns that arise. After submitting a bid, follow up
with the client to answer any questions. This step demonstrates your commitment to the project.

Competitive Bidding
Be aware of your competitors and their work. Then, ensure your bid includes a strong value
proposition, which highlights what sets your services apart from competitors. This might include
experience, quality of work, or unique offerings.

Ethical Practices
NARI members pledge to adhere to NARI’s Code of Ethics, which emphasizes high standards of
honesty, integrity, and responsibility. Following ethical practices builds trust with clients and
enhances your reputation.

Legal Considerations
To protect both parties, ensure that all agreements are clearly outlined in the contract. This
includes payment terms, scope changes, and timelines.

Continuous Improvement
One step that often can be overlooked happens after the bidding process. After each bid,
remodeling professionals should reflect on what went well and what could be improved. Gathering
client feedback during this phase can help refine future bidding.

By utilizing the resources and best practices shared by NARI, remodelers can enhance their bidding
process, improve their chances of winning contracts, and establish a strong reputation in the
industry.

NARI members have access to a variety of valuable resources. Create an account and submit your
membership application today.