Design Bid

When you get swept up in a new construction project, it’s easy to get overwhelmed by the many choices you have to make, plans you have to set up, and steps you have to take. Creating a new building or renovating an existing one can sometimes feel like a full-time job! In all the hustle and bustle, worrying about the financing for your project is just one more thing that you don’t need taking up your mental energy, especially when the terminology can be confusing. For example, what’s the difference between a budget quotation and a contract bid? To make it easier for you to navigate this part of your design-build construction project, here’s what you need to know!

How is the cost of my project determined?

Each construction project is different, and so the price of each project is different and based on its individual variables. A price can be estimated based on the square footage of the space, as well as on experience with similar projects. This is known as budgetary pricing. At DESCCO Design and Construction, we provide services for conceptual planning, which allows us to determine the square footage of your project and other associated budgetary pricing. Your final contract price is decided after the design development process is completed, once we have sealed drawings approved for permitting.

What is a budget quotation?

You’ll hear the terms budget quotation and contract bid get thrown around a lot in relation to construction projects. Compared to a contract bid, a budget quotation has a little bit less detail and specificity. It’s more of an estimate on the cost of a project. A budget quotation is based on the basics of a project as opposed to detailed plans of the project. It also doesn’t typically account for specifics like material types or quality. It’s mainly meant to give you a ballpark idea of what a project will cost.

What is a contract bid?

Conversely, a contract bid has much more detail than a budget quotation. It’s less of a rough estimate and more like a price that the contractor is willing and able to accept for the project. A contract bid is based on far more detailed plans, typically a full set of drawings and/or outline specifications for the project. A contractor makes this bid knowing that this price accounts for everything that will be needed for this project, including materials and all the small details. Essentially, a contract bid is much more a definite price for your construction project.

How do I secure financing for my project?

Arranging financing for your project is something that you definitely need to make a priority. You are probably going to need to be able to show a clean credit record, a physical proof of concept, which can include a floor plan, cost and profit projections, as well as a timeline of anticipated project, a qualified, reputable, and licensed builder, a minimum down payment of 20% and something to prove your ability to pay back the loan. There are many different types of construction loans, and each financial institution or bank that you work with will probably have its own guidelines and requirements for lending, so be sure to have a detailed conversation with your lender about what you’ll need and what will be expected of you.

With a contractor like DESCCO on your side, you can count on receiving reasonable pricing for your project and only the highest quality of work on your new space! If you have more questions, you can refer to our FAQ page here, and if you don’t see your question answered on our site, feel free to contact us. One of our team members will be happy to help you!