Bid and Award Process

The Steps

• Bid package: Owner issues drawings, specifications, scope, schedule, and bid instructions to qualified contractors
• Bid period: Contractors price the work and submit; addenda answer questions so everyone bids the same scope
• Bid leveling: Normalize bids to a common scope — the critical step that surfaces gaps, exclusions, and allowances
• Award: Select the contractor and execute the construction contract; issue notice to proceed

Getting Comparable Bids

• Complete documents: Incomplete drawings produce non-comparable bids and change orders later
• Watch exclusions & allowances: The low bid often has the biggest carve-outs — level before you compare
• Cost buckets: Separate hard costs from soft costs so the comparison is clean
• Qualify the bidder: Bonding capacity, references, and financial strength — the lowest number isn't the best bid if the GC can't finish

Bid, Award & Financing (Florida note)

• Feeds the loan: The awarded contract and budget underwrite the construction loan and its sources & uses
• Guaranties: Lenders may require a completion guaranty tied to the awarded GMP
• Florida liens: Manage lien waivers through every draw — see Florida construction lien rules and the Notice to Owner regime
• Model it: Run the awarded budget through the deal analyzer to confirm the project still pencils

What is the bid and award process in construction?

It is the structured process by which an owner or developer solicits competitive prices from contractors, compares them on a like-for-like basis, and selects (awards) the contract. It runs from issuing a bid package with drawings and specifications, through receiving and leveling bids, to negotiating and awarding a construction contract and issuing notice to proceed.

What is bid leveling?

Bid leveling is normalizing competing bids to a common scope so they can be compared fairly. It surfaces scope gaps, exclusions, and allowances that make a headline "low bid" misleading. Leveling is the most important analytical step in the process — the goal is to compare the same work, not just the biggest and smallest numbers.

How does the bid and award process affect financing?

The awarded contract and its budget underwrite the construction loan, sizing the sources and uses and the loan amount. Lenders often require a guaranteed maximum price and a completion guaranty tied to the award. A sloppy bid process that leaves scope gaps shows up later as change orders and cost overruns the loan may not cover.

What should Florida owners watch during bid and award?

Beyond comparable, well-leveled bids and a qualified, bondable contractor, Florida owners must manage the state's construction lien environment — the Notice to Owner process and lien waivers collected through every payment draw — so that a subcontractor dispute cannot cloud title. Incomplete bid documents are the most common source of later change orders.

Who can help me run a bid and award on a Florida project?

Michael R. Linton at Linton Global Solutions helps owners structure the bid package, level bids, qualify contractors, and align the awarded budget with construction financing and Florida lien compliance. With 39 years of Florida CRE experience, Linton Global Solutions keeps the price defensible and the lender comfortable. Call (312) 612-1031.

Article Summary

The bid and award process is how an owner solicits competitive contractor prices, levels them to a common scope, and awards the construction contract. It runs from bid package to bid period to leveling to award and notice to proceed. Comparable, well-leveled bids from a qualified, bondable contractor protect budget and schedule and underwrite the construction loan. In Florida, manage the construction-lien and Notice-to-Owner regime through every draw. Incomplete documents are the top source of later change orders.

Key Takeaways

• ✓Bid & award = solicit, level, and select a contractor.
• ✓Bid leveling normalizes scope — the low bid often has the biggest carve-outs.
• ✓Separate hard vs. soft costs for a clean comparison.
• ✓The awarded budget underwrites the construction loan.
• ✓Qualify bonding capacity — lowest ≠ best if the GC can't finish.
• ✓In Florida, manage lien waivers and Notice to Owner every draw.

About Michael R. Linton

Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.

Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.

Ready to Talk About Your Bid and Award Process Deal?

Get a free consultation with Michael R. Linton — 39 years of Florida CRE experience. Zero pressure.

Works Cited

1. AIA. "Bidding & Contract Award Documents." American Institute of Architects, https://www.aia.org/. Accessed Sep 23, 2026.
2. Florida Legislature. "Ch. 713 — Construction Liens." Online Sunshine, https://www.leg.state.fl.us/. Accessed Sep 23, 2026.
3. AGC. "Construction Procurement Best Practices." Associated General Contractors, https://www.agc.org/. Accessed Sep 23, 2026.

Disclosure & Compliance

Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.

Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.