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Construction bid terms, in plain English
The words in a trade proposal decide what you're really paying for. Here's what 12 common bid terms mean, why each one matters when you level bids, and what the wording tends to look like.
By others
Work a bidder says someone else will do. It is not in their price.
NIC (not in contract)
Work shown on the drawings that is not part of this contract or bid.
Allowance
A placeholder dollar amount in a bid for something not fully selected or defined yet.
Alternate
A separately priced option that adds to or deducts from the base bid if the owner chooses it.
Exclusion
Work a bidder states is not included in their price.
Qualification
A condition or assumption the bidder's price depends on.
Unit price
A set price per unit of work, used to add or deduct when quantities change.
Contingency
Money set aside to cover unknowns and changes.
Scope of work
The description of exactly what work a contractor will do and provide.
Bid leveling
Adjusting bids so every one is priced on the same scope, so the totals truly compare.
General conditions
Job-wide costs (and contract terms) not tied to a single trade, like supervision, temporary facilities and cleanup.
Change order
A written agreement that changes the contract's scope, price or schedule after signing.
Put the terms to work: send every bidder the scope letter template, then compare their answers in the free leveling sheet.