The Complete Guide to the Construction Bidding Process in Australia: Win More Projects with OwnerDeveloper

Construction bidding is one of the most critical stages in any project — it’s where visions on paper turn into contracts and construction reality. For developers, homeowners, and contractors alike, mastering the bidding process is essential for avoiding costly mistakes, securing the right partners, and ensuring a project is delivered on time, on budget, and to specification.

At OwnerDeveloper, we’ve guided over 1,000 projects through the tendering and construction process. In this article, we’ll break down the 9 key steps of the construction bidding process, explore the different tendering and delivery methods, and share proven strategies to help you submit, assess, and select bids that drive successful outcomes.

🔑 What Is Construction Bidding?

Construction bidding is the structured process where builders, subcontractors, or developers submit proposals (bids) to complete a project. 

These bids typically outline:

• Scope of work (what’s included and excluded)

• Cost breakdown (labour, materials, overhead, profit)

• Schedule and milestones

• Experience and qualifications

• Terms and conditions

For project owners, bidding ensures competition, transparency, and value. For contractors, it’s the gateway to new business and long-term relationships. And for developers like OwnerDeveloper, it’s a balancing act of cost control, quality assurance, and risk management.

🏗️ The 9 Steps of the Construction Bidding Process

1. Bid Solicitation

The process begins when a project owner (government, private developer, or homeowner) issues an Invitation to Bid (ITB), Request for Quote (RFQ), or Request for Proposal (RFP). This package contains specifications, drawings, project requirements, insurance/bonding needs, and timelines.

👉 OwnerDeveloper tip: We always recommend clarifying requirements upfront and ensuring bid documents align with realistic site conditions.

2. Due Diligence

Before preparing a bid, contractors must conduct site visits and feasibility checks. This avoids underpricing, identifies hidden risks, and ensures resources (labour, equipment, cash flow) are sufficient.

👉 OwnerDeveloper approach: Our feasibility guide and superintendent oversight help identify red flags early, protecting owners from budget blowouts.

3. Bid Preparation & Estimating

Here, contractors calculate costs — from direct labour and materials to subcontractor quotes and overhead. Advanced estimating tools and accurate data are key.

👉 Why OwnerDeveloper matters: We benchmark costs against hundreds of past projects across NSW and QLD, giving our clients data-driven insights.

👉 Read Now: How Much Will Your Development Really Cost? Learn to Calculate Feasibility Like a Pro

4. Bid Creation

The proposal is formalised into a professional document that demonstrates capability, reliability, and value. Beyond costs, it highlights safety records, qualifications, and case studies.

5. Bid Submission

Contractors present their bids by the deadline, often including a bid bond as a guarantee. Professional presentation and completeness are critical.

6. Bid Evaluation & Leveling

Project owners compare bids. Since formats differ, “bid leveling” standardises submissions for like-for-like comparison. 

Key evaluation factors include:

• Price competitiveness

• Contractor experience

• Quality and safety record

• Scheduling capacity

7. Bid Selection

While the lowest bid may win public projects, private owners often choose based on best value, balancing cost with proven reliability and expertise.

8. Contract Negotiation & Formation

The winning bidder and project owner finalise terms. This may involve lump-sum, cost-plus, time & materials, or guaranteed maximum price (GMP) contracts, depending on project needs.

9. Project Delivery

Once the contract is signed, work begins. The delivery method (e.g., Design-Build, Design-Bid-Build, CMAR, IPD, or Public-Private Partnership) determines roles and responsibilities.

👉 OwnerDeveloper role: We act as your independent superintendent or development manager, ensuring your project stays aligned with its original bid commitments.

📑 Types of Construction Tendering

Understanding tendering methods is vital:

• Open Tendering – Anyone can bid (common in government projects).

• Selective Tendering – Only invited, pre-qualified contractors can bid.

• Negotiated Tendering – The owner negotiates directly with one contractor.

• Serial Tendering – Used for multiple similar projects over time.

👉 Our edge: OwnerDeveloper helps clients choose the most efficient method for their goals, balancing competition with project complexity.

👉Read Now: The Truth About Tender Pricing – And Why Most Developers & Homebuilders Overpay

📝 Types of Construction Contracts

Choosing the right contract type impacts risk and cost control:

• Lump Sum (Fixed Price) – Simple but high risk for contractors.

• Time & Materials (T&M) – Flexible but uncertain for owners.

• Cost-Plus – Covers expenses plus profit; good for complex, uncertain scopes.

• Unit Price – Based on defined units (e.g., per sqm, per km).

• Guaranteed Maximum Price (GMP) – Caps project cost, shifting risk to contractors.

👉 OwnerDeveloper advantage: We negotiate fair, transparent contracts that protect both budget and quality.

🚀 Strategies to Win More Bids (and Avoid Losing Them)

• Be Selective: Don’t chase every opportunity; align bids with your strengths.

• Submit Complete Documents: Missing forms or unclear inclusions = instant rejection.

• Demonstrate Value Beyond Price: Showcase expertise, safety, and past performance.

• Use Technology: Estimating software, bid platforms, and cost databases improve accuracy.

• Follow Up: Seek feedback on lost bids to refine future proposals.

🏆 Why Partner with OwnerDeveloper?

At OwnerDeveloper, we’ve mastered the construction bidding process across Sydney, Brisbane, and beyond, helping clients from first-time developers to seasoned investors. Our role is to:

• Guide you through feasibility, tendering, and contractor selection

• Provide independent superintendent services to oversee delivery

• Reduce risks of budget blowouts, disputes, and delays

• Leverage 25+ years of industry experience and $400M+ in developments

Whether you’re building your first duplex or managing a multi-unit development, our team ensures your bidding process delivers value, transparency, and confidence.

💡 Free Resource for Developers

Want to make sure your next project runs smoothly from start to finish? 

Download OwnerDeveloper’s Property Development Due Diligence & Project Management Checklist — your step-by-step guide through every phase of development, from feasibility and planning approvals to construction management and final handover. 

Packed with actionable insights and practical checklists, this eBook will help you minimise risks, stay on budget, and deliver high-quality results. 

👉 Download the checklist here and take the guesswork out of your next project.

📌 Final Thoughts

Construction bidding is more than just numbers — it’s about strategy, trust, and execution. With OwnerDeveloper by your side, you’ll not only navigate the complexities of tendering but also secure outcomes that grow your wealth and protect your investment.

👉 Ready to take the next step? Book a free consultation with OwnerDeveloper today and let’s make your project a success.