Are bid packages the way to go?

A “bid package” typically combines the work of one or more related trades into a single proposal. For example, as a drywall contractor, you might submit a bid for framing and drywall, but you could also include insulation, acoustical ceilings, or painting in your pricing. When you do this, you’re bidding on a “bid package.”

Why Choose Bid Packages?

In my opinion, bid package bidding deserves a big “thumbs up.” Here’s why:

1. Improved Bid Win Ratio: Offering bid packages can make your proposal more attractive to general contractors (GCs), as they prefer dealing with fewer subcontractors.
2. Cost Efficiency: Bid packages often reduce mobilization costs, saving both you and the GC money.
3. Smoother Project Execution: Fewer subcontractors mean fewer scheduling conflicts and less finger-pointing between trades (e.g., between tapers and painters).
4. Increased Gross Sales: By bundling trades, you can turn a smaller job into a larger one, helping you hit your yearly sales goals faster.
5. Job Control: Managing multiple trades on a project gives you more influence over the pace and quality of work.

For example, if you’re bidding on an office building with drywall and metal framing, it makes sense to include the acoustical ceilings and insulation (between studs) within your drywall scope. The more trades you handle, the bigger the job—and the better your bottom line.

When Bid Packages Might Not Work

There are times when offering a bid package can backfire. Let’s say you’re bidding on a supermarket project with extensive acoustical ceilings. If your team lacks the labor force, expertise, or production capacity to compete with a specialized acoustical contractor, you’re likely to lose the bid—or worse, win it and face financial or scheduling challenges.

In such cases, it’s smarter to stick to your strengths and avoid overcommitting. Remember, trying to outbid a contractor who buys in bulk or specializes in a trade can hurt your margins and reputation.

The Final Verdict

After 40+ years in this business, I’ve observed that the most successful contractors are those who submit bid package pricing. General contractors prefer them, and they can significantly boost your business growth—if managed wisely.

That said, always keep this rule in mind: “Don’t bite off more than you can chew.” Start small, build relationships with other reliable trades (e.g., a reputable painting company), and scale your bid packages as your capacity grows.