What to Include in a Contractor Bid (Complete Guide)

Learn exactly what to include in a contractor bid. A practical guide for specialty trade subs and small contractors who want to win more work.

What to Include in a Contractor Bid

A weak bid loses jobs. A strong bid wins them and protects you when things get complicated. If you are a specialty trade subcontractor or running a small contracting business, knowing exactly what to put in a bid is one of the most important skills you can have.

This guide breaks it down section by section so you can build bids that look professional, cover your bases, and give clients a reason to say yes.

1. Your Business Information

Start with the basics. Every bid should have your company name, contact information, license number, and the date the bid was created. This is not optional. GCs and property owners need to know who they are dealing with before they read a single line item.

Include:

  • Company name and logo
  • Phone number and email
  • Business address
  • Contractor license number
  • Bid date

If you are submitting bids without this information, you are already starting behind.

2. Project Details

Identify the job clearly. A bid that does not specify the exact project can create confusion or disputes later.

Include:

  • Project name or address
  • Client or GC name
  • Project type (new construction, renovation, service work, etc.)
  • Scope summary in plain language

One or two sentences describing what you are bidding on is enough. Keep it clear and specific.

3. Itemized Scope of Work

This is the most important part of any contractor bid. Break down exactly what work you are doing. Do not lump everything into one line. Itemizing your scope protects you from scope creep and shows clients you know what you are doing.

For each item, describe:

  • The task being performed
  • Materials being used
  • Any relevant specs or standards

For example, instead of writing "electrical work," write "install 200A main panel, run 12 circuits per plan, install 24 outlets and 16 switches."

The more specific you are, the harder it is for someone to come back and say you owe them more work at no charge.

4. Materials and Labor Costs

Break out your costs so the client can see where the money is going. Some contractors prefer to show labor and materials separately. Others combine them per line item. Either approach works as long as the numbers are clear.

At a minimum, include:

  • Material costs
  • Labor costs
  • Equipment or rental costs if applicable
  • Subtotal before markup or tax

Showing your numbers in an organized way builds trust. It also makes it easier to have pricing conversations if the client wants to adjust scope.

5. Markup and Profit Margin

You do not have to label a line item "profit," but your markup needs to be baked into the numbers. Many specialty contractors under-price work because they forget overhead costs like fuel, insurance, tools, and administrative time.

Before you finalize any bid, make sure your markup covers:

  • Direct job costs
  • Company overhead
  • Your target profit margin

If you are not sure what margin to use, a common starting point for specialty trades is 15 to 25 percent depending on job type and market conditions.

6. Tax

If sales tax applies to materials or labor in your state, include it as a line item. Do not bury it in your total. Clients notice when taxes appear at the end without warning and it can erode trust.

Check your state and local rules. Some trades are exempt on labor but not materials. Know the rules and show the math.

7. Exclusions

This section is often skipped and it costs contractors money. Exclusions tell the client what is NOT included in your bid. If you do not list exclusions, the assumption is that everything related to the job is your responsibility.

Common exclusions for specialty trades:

  • Permit fees
  • Engineering or design drawings
  • Work outside the defined scope
  • Hazardous material removal
  • Site prep or cleanup by other trades

Write your exclusions clearly. This protects you in disputes and sets proper expectations upfront.

8. Payment Terms

Do not submit a bid without stating how and when you expect to get paid. Include your deposit requirement, progress payment schedule if applicable, and final payment terms.

Example: "50% deposit required to schedule work. Balance due upon completion."

If you bill on milestones for larger jobs, list those milestones. Clear payment terms reduce late payments and keep jobs moving.

9. Bid Validity Period

Material prices change. Labor costs shift. A bid is not a forever promise. Include a line stating how long the bid is valid, typically 30 days is standard.

Example: "This bid is valid for 30 days from the date issued."

This gives you room to reprice if a client sits on your bid for months before responding.

10. Signature and Acceptance Line

A bid becomes a contract when both parties agree to it. Include a line for the client to sign and date if they want to move forward. This creates a paper trail and confirms mutual agreement on scope and price.

Build Better Bids Faster

Putting all of this together manually for every job takes time. TradeBid is built specifically for specialty trade contractors who need to generate itemized, client-ready bid PDFs without spending hours formatting spreadsheets or Word documents.

You enter your scope, costs, and terms. TradeBid produces a clean, professional PDF you can send the same day.

Try TradeBid free at tradebid.org and start sending bids that win work.