Bid day and after: from your proposal to a signed subcontract

What does the client do with your number?

1. 1
   Proposals arrive late

   Most subcontractor numbers reach a client in the final hours before its own bid is due. The estimator builds the bid in a spreadsheet that updates as prices land.
2. 2
   Bid leveling

   The estimator lines up every flooring proposal on a bid tab and adjusts them to the same scope. If you excluded base and a competitor included it, a number for base gets added to yours. Vague proposals get the least favorable adjustment.
3. 3
   Carrying a number

   The client picks one flooring number for its bid — often the lowest leveled number from a sub it trusts to perform, which isn't always the lowest raw number.
4. 4
   The owner decides

   The owner reviews GC bids. On public work, results can be known within days; private awards can take weeks or longer.

What happens when your client wins the project?

A client that wins the project has to buy out each trade. For flooring, that usually means:

• A scope review. A call or meeting to walk through your proposal: products, quantities, alternates, exclusions, schedule and the subcontract's requirements. Bring your takeoff.
• Price negotiation. A client may ask its carried sub to match a lower number it received. That's your business decision — set your walk-away number before the call, not during it.
• Value engineering. If the project came in over budget, the owner looks for savings. Substitute products and alternates are your chance to help while protecting margin.
• A letter of intent or a subcontract. A letter of intent (LOI) states the client intends to award you the work, sometimes authorizing submittals or long-lead material orders. The subcontract is the binding agreement.

What is bid shopping?

Bid shopping is when a client shares one subcontractor's price with competitors to drive prices down. It's widely considered unethical, and some states require clients to list their subcontractors on public bids, which limits it. It still happens. You can limit your exposure by staying firm on numbers you know are right, keeping each client's pricing separate, and favoring clients who don't shop bids.

What should you check before signing?

The subcontract usually replaces your proposal terms with the client's — payment, retainage, insurance, schedule obligations and backcharges. Module 10 goes through a subcontract in detail. At minimum, before signing an LOI or subcontract:

• Confirm the scope and price match your proposal, including any alternates the owner accepted.
• Check that your qualifications and exclusions are attached or referenced — otherwise they may not apply.
• Read the payment terms, the retainage percentage and any pay-if-paid language.
• Compare the insurance requirements with what your policies actually carry.
• If your proposal asked for a deposit, raise it again now — this is the moment it's most likely to be granted (getting paid faster).

While you wait for an award, stay in front of the client with a steady follow-up rhythm. The bid follow-up guide covers cadence and wording.