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What is the Bid Process in Construction?
The construction bidding process involves five steps: bid solicitation, bid submission, bid selection, contract formation, and project delivery. For a contractor in Nebraska to achieve success in the construction bidding process, you need to plan and improve in each of these areas.
If you’re a new contractor or are looking to secure more bids more often, follow our guide below.
What Should a Construction Bid Include?
Successful construction bids generally contain the total cost of building the structure, including expenses for subcontractors, general contractors’ costs, overhead profit, and scope of work. A bid will also need to contain information such as company details, the date, a clear definition of the work, and a project name. Without all of these elements combined, you may not meet the necessary standards.
How Do You Estimate a Construction Bid?
An accurate estimate is not only vital for winning a bid, but it can also determine which Nebraska Construction bonds you may need. A professional estimate will include:
- Direct costs: This includes materials, labor, and equipment expenses tied directly to construction activities.
- Indirect costs: Consider costs that don’t involve direct construction work, like permits, utilities, security, quality control, administration, and legal fees.
- Labor hours: Wages paid to construction teams should be factored in, including potential overtime.
- Subcontractor expenses: Don’t forget to calculate costs associated with hiring subcontractors for specialized tasks like plumbing, electrical work, or HVAC installation.
What Are the Five Steps in the Process of Bidding?
- Bid Solicitation: This is when the project owner or general contractor invites contractors to submit bids.
- Bid Submission: Contractors prepare and submit their bids with all necessary details, such as pricing, scope of work, and deadlines.
- Bid Selection: The owner of the project will look over bids, including the contractor’s costs, qualifications, and the scope of work suggested. Based on this information, they will choose a bid they believe is best.
- Contract Formation: Once the project owner chooses a bid, they will set up a contract with the winning contractor.
- Project Delivery: At this phase, the contractor will begin work on the project and secure any further surety bonds they may need.
What Licenses and Bonds Do You Need for Nebraska Construction Bidding?
Nebraska does not issue a single statewide “general contractor” license. Instead, most construction firms must register with the Nebraska Department of Labor under the Contractor Registration Act (this is registration—not a trade license—and is tied to workers’ compensation compliance). Sole operators with no employees are still subject to the Act if they “contract or subcontract” to perform construction, but they do not file workers’ comp certificates for themselves.
Electrical contractors and electricians are licensed and permitted through the Nebraska State Electrical Division; plumbing licenses are administered (often locally) under city/board programs recognized by the state (e.g., Omaha/Lincoln boards). Nebraska does not license HVAC/mechanical contractors at the state level, but many requirements are set by cities (e.g., Omaha/Lincoln). For solar PV, there is no separate “solar contractor” license; PV work requires electrical permits/inspection via the State Electrical Division or the local authority having jurisdiction, plus any local building/zoning permits (e.g., Lincoln’s streamlined residential PV process). Foreign (out-of-state) entities generally must obtain a Certificate of Authority from the Nebraska Secretary of State before transacting business.
Doing business with the State of Nebraska. Statewide goods and services solicitations are posted by the Department of Administrative Services (DAS) – Materiel, State Purchasing Bureau. Bids are listed publicly on the Bid Opportunities page; no vendor portal login is required to view or submit a response. Agencies may also post program-specific opportunities (e.g., DHHS links to State Purchasing for vendor registration).
Highway and bridge lettings (NDOT). The Nebraska Department of Transportation (NDOT) conducts lettings on published schedules and requires contractor prequalification before bidding (subcontractors are not required to prequalify). Proposals are submitted electronically via AASHTOWare Project Bids/Bid Express.
Bid security. For NDOT lettings, each bid must include a bid bond for at least five percent (5%) of the amount bid, issued by a surety authorized in Nebraska, on the Department’s bond form. Other public owners set bid-security requirements in their solicitation documents.
Performance and payment bonds (Nebraska Little Miller Act). Performance and payment bonds are required on public construction for the state, counties, cities, villages, school districts, or other public entities. Statutory exceptions apply only to small contracts (generally ≤ $15,000 for state projects and ≤ $10,000 for local projects). Coverage must be at least the amount of the prime contract.
Electrical permits/inspections are handled by the State Electrical Division where the state has jurisdiction; cities with their own programs (e.g., Omaha, Lincoln) issue and inspect locally.
Common Mistakes Made While Bidding
Even a well-prepared contractor can be rejected for a bid. Some common reasons this might happen are:
- Incomplete documentation, such as proof of bonds and licenses.
- Inaccurate cost estimates, where your estimate is much higher or lower than average.
- Lack of experience, unproven track record.
- Simple mistakes, like not following the guidelines for the bid strictly or missing paperwork.
- Ambitious timelines, if your proposed timeline does not align with the average timelines submitted you may face rejection.
State vs. Federal Bids?
Understanding the difference between state and federal bids can help you stay compliant when you submit your bid.
| Topic | State | Federal |
|---|---|---|
| Procurement Laws and Regulations | State-specific procurement laws and regulations, varying by state. | Must comply with the Federal Acquisition Regulation, which is stricter and more rigorous. |
| Bonding Requirements | Often need state licensing and bonds like bid bonds and performance bonds. | Also needs bonds but is often required from a federally approved surety company. |
| Project Scope | Projects can range from small repairs to large public works in a specific area. | Contracts can be large-scale, spanning multiple states. |
| Set-Aside Programs | Some states have set-aside programs for small businesses, minority-owned, or veteran-owned businesses, but this varies. | The federal government has many set-aside programs for small businesses, veteran-owned, women-owned, and disadvantaged businesses through programs like 8(a) or HUBZone. |
| Competition | Often limited to nearby areas, reducing competition. | Open to contractors nationwide, increasing competition and opportunities. |
Unique Aspects of the Nebraska Construction Bidding Process
- State-level credentials and business registration. Nebraska does not issue a single statewide “general contractor” license. Contractors and subcontractors doing business in the state must register under the Nebraska Contractor Registration Act with the Nebraska Department of Labor (NDOL); registration is not a professional license. Electricians/electrical contractors are licensed by the Nebraska State Electrical Division. Plumbers are licensed at the state/local level (notably via local programs such as Omaha/Lincoln). Nebraska does not license HVAC/mechanical contractors at the state level, but many cities require local HVAC licensing/registration and permits under adopted mechanical codes. For solar PV, there is no separate “solar installer” license instead electrical work must be performed/overseen by a Nebraska-licensed electrical contractor under an electrical permit. Business entities (domestic/foreign) register with the Nebraska Secretary of State before transacting business.
- Building codes and plan review. Nebraska maintains a state building code, and local jurisdictions that adopt/enforce codes must keep them updated to conform generally with the state code within two years of each update. The State Fire Marshal adopts and enforces the State Fire Code and conducts plan reviews/inspections in its jurisdiction or where authority is delegated; local jurisdictions that adopt codes enforce them locally.
- Environmental and water-resource permits. Construction activities that disturb one acre or more require Nebraska’s NPDES Construction Storm Water General Permit before land disturbance. Work that places dredged/fill material in waters or wetlands requires U.S. Army Corps of Engineers Section 404 authorization and a state Section 401 Water Quality Certification from NDEE. Many routine activities may qualify under Corps Nationwide Permits with corresponding state 401 actions. Development within mapped floodplains requires a local floodplain development permit.
- Insurance requirements. Most Nebraska employers must carry workers’ compensation insurance that generally covers employees, not independent contractors. NDOL requires a current workers’ comp certificate on file for registered contractors with employees. Nebraska does not impose a universal statewide general-liability mandate for all contractors, though owners—especially public owners—often require it by contract.
- Public works bidding and prequalification. State goods/services solicitations are posted publicly by the State Purchasing Bureau (no vendor login required). The Nebraska Department of Transportation (NDOT) runs highway/bridge lettings on set dates via Bid Express/AASHTOWare and requires contractor prequalification (submit at least five days before the intended letting); NDOT provides bid/plan documents and results online. Agencies may also post contract opportunities on their own pages (e.g., DHHS).
- Bid security and final bonds. Nebraska’s “Little Miller Act” requires performance and payment bonds on state public construction contracts over $15,000 and on local public construction contracts over $10,000. Bond amounts must at least equal the prime contract price. NDOT solicitations commonly require a 5% bid guarantee (bid bond) with proposals.
Nebraska Bid Network
Contractors and suppliers looking for State and local work in Nebraska track two main platforms:
Nebraska DAS State Purchasing Bureau (SPB). Nebraska does not use a login-based statewide vendor portal. The SPB posts all statewide solicitations publicly on its Bid Opportunities pages, where vendors can view IFBs, RFPs, RFIs, addenda, and award info without registering. Individual agencies (e.g., DHHS) may also post/announce opportunities and offer email subscriptions for notices. Vendors should monitor the SPB site and relevant agency pages to track opportunities.
NDOT lettings via AASHTOWare Project Bids / Bid Express. Nebraska Department of Transportation (NDOT) advertises all highway/bridge lettings and accepts electronic bids through Bid Express (bidx.com) using AASHTOWare Project Bids. NDOT requires prime-contractor prequalification, with complete packets due by 5:00 p.m. at least five days before the intended letting; subcontractors are not required to prequalify. Letting schedules, plan/proposal documents, addenda, and bid results are posted online. (
Because SPB and NDOT/Bid Express workflows are designed for government-to-business (G2B) transactions, they don’t facilitate direct consumer sales. For broader coverage, especially local work, vendors should also check city/county e-bid portals, where registering under the right commodity/service codes enables automatic email alerts when matching events are posted.
Succeed in the Nebraska Construction Bidding Process
To succeed in the Nebraska construction bidding process, you need accurate estimates and documentation as well as a solid grasp of the requirements and nuances of state vs federal bids. However, one of the most important components of your bid is securing the right surety bonds, such as bid bonds, performance bonds, and payment bonds.
When you choose a reliable surety bond agency, you can feel confident that your bond will meet all legal and regulatory requirements. At Surety Bond Professionals, we know the challenges you may face and are here to support you with all your bond needs. Contact us today for a quote.
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