Course outline

Module 0 · How commercial bidding works 4 minUpdated September 13, 2026

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

On bid day, each GC lines up the flooring proposals it received on a bid tab, adjusts them to a common scope, and carries one number in its bid to the owner. If that GC wins, it usually holds a scope review with its likely flooring sub, may negotiate price, then issues a letter of intent or a subcontract. Weeks or months can pass between your proposal and a signed contract.

By Michael Reddy, IntelBid

After this lesson you can

Understand how a GC levels and compares flooring proposals
Prepare for a scope review meeting
Know what to check before signing a letter of intent or subcontract

What does the GC do with your number?

Proposals arrive late
Most subcontractor numbers reach a GC in the final hours before its own bid is due. The estimator builds the bid in a spreadsheet that updates as prices land.
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.
Carrying a number
The GC 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.
The owner decides
The owner reviews GC bids. On public work, results can be known within days; private awards can take weeks or longer.

Your proposalCarried

Proposal: $97,145
Adjustments: None

Leveled: $97,145

Flooring sub B

Proposal: $91,800
+ Excluded rubber base: +$6,400
+ Addendum 3 not acknowledged: +$2,100

Leveled: $100,300

Flooring sub C

Proposal: $99,300
Adjustments: None

Leveled: $99,300

Sub B's proposal was lowest, but after plugs for what it left out, the clear proposal was the lowest leveled number.

A simplified bid tab. The lowest proposal left scope out, so the estimator added plugs — and the clear proposal was carried. Illustrative numbers.

A clear scope beats a low number with holes

When your proposal states exactly what is included and excluded, the estimator doesn't have to guess — and guesses during leveling rarely go your way. Module 7 covers writing qualifications and exclusions.

What happens when your GC wins?

A GC 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 GC 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 GC 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 GC shares one subcontractor's price with competitors to drive prices down. It's widely considered unethical, and some states require GCs 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 GC's pricing separate, and favoring GCs who don't shop bids.

What should you check before signing?

The subcontract usually replaces your proposal terms with the GC'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 GC with a steady follow-up rhythm. The bid follow-up guide covers cadence and wording.

What is bid leveling?

Bid leveling is how a GC compares subcontractor proposals that cover slightly different scopes. The estimator adds or subtracts amounts so every proposal represents the same work, then compares the adjusted totals.

What is a letter of intent in construction?

A letter of intent is a GC's written statement that it intends to award you a subcontract, often issued before the full subcontract is ready. Some authorize limited work such as submittals. What it commits each side to varies widely, so read it closely.

How long after bid day will I hear back?

It varies from days on a fast private project to months while an owner arranges financing or approvals. Following up on a schedule keeps you in front of the GC while you wait.

Key points

GCs level proposals to a common scope before comparing them — clear scope protects you.
Award is followed by scope review, possible negotiation, then an LOI or subcontract.
The subcontract replaces your proposal terms, so the moment before signing is when to negotiate.

In IntelBid · Bid detail → follow-ups and Client Replies

Follow up every GC and record the outcome

After bid day, IntelBid drafts follow-ups to every GC you bid — one separate email each, so competitors never share a thread — and reads their replies to suggest whether the bid was won, lost or is still open. Outcomes are recorded per GC, which is what makes your win rate by GC trustworthy later.

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End of Module 0Take the Module 0 quiz · 5 questions

About the author. Michael Reddy builds IntelBid, bid management software for commercial flooring subcontractors. These lessons come from the bid desk: how the work is priced, won and paid for.