Surety Bond Professionals is a family-owned and operated bonding agency with over 75 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your construction bond needs.
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 Nevada 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 Nevada 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 Nevada Construction Bidding?
Nevada requires a statewide contractor’s license from the Nevada State Contractors Board (NSCB) for most construction over $1,000. However, there’s a limited “handyman” exemption below that amount, which applies only if no permit is required and no electrical, plumbing, HVAC/refrigeration work is involved.
Note: every Nevada contractor license must carry an NSCB license bond (amount set by the Board, typically $1,000–$500,000 based on monetary limit and other factors).
Solar installations. Nevada does recognize solar as a specialty. Photovoltaic installers must also hold a Nevada OSHA PV Installer license in addition to the appropriate contractor license. Local building/electrical permits are required.
Core trades. Trade contractors (electrical, plumbing and heating, and refrigeration and air conditioning) are licensed by the NSCB under specific classifications. Separate local/journeyman credentials may apply depending on the city/county.
Doing business with the State of Nevada. Vendors register in NevadaEPro, the State Purchasing Division’s e-procurement portal, to receive notices and respond to solicitations for goods and services. Out-of-state entities generally must qualify with the Nevada Secretary of State (via SilverFlume) before transacting business.
Highway and bridge lettings. The Nevada DOT conducts electronic bidding through its E-Bidding Portal; contractors must be prequalified (typically for projects over $250,000) before bidding.
Bid security. Nevada public works solicitations commonly require a bid bond of 5% of the total bid (or equivalent security) as stated in agency instructions. Check the specific bid documents for the exact requirement.
Performance and payment bonds. For public works, the contracting body must require both a performance bond and a payment bond. Each bond’s amount is set by the public body but may not be less than 50% of the contract amount (many Nevada bid documents specify 100%).
Other public-works particulars. Nevada’s public-works statutes include rules on subcontractor listing and “best bid” awards for projects over $250,000. Agencies may also require bidder qualification with the State Public Works Division for building projects.
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 Nevada Construction Bidding Process
- State-level credentials and business registration.
Nevada issues a statewide contractor’s license through the Nevada State Contractors Board (NSCB). Most construction work over $1,000 requires licensure. The “handyman” exemption below $1,000 does not apply if a permit is required or if electrical, plumbing, HVAC/R work is involved. Solar work is licensed under C-37 (Solar Contracting) or C-2 (Electrical); local building/electrical permits are required. Business entities, domestic or foreign, must register with the Nevada Secretary of State (SilverFlume). - Building codes and plan review.
Nevada’s building codes are adopted and enforced locally for state-owned projects. The State Public Works Division (SPWD) adopts and enforces codes (currently listing 2024 I-Codes/UPC/UMC and 2023 NEC for state projects). Separately, Nevada’s energy code is adopted statewide and, as of 2024, references the 2024 IECC; local jurisdictions enforce it through their permitting. - Environmental and water-resource permits.
Projects disturbing one acre or more generally require stormwater coverage under NDEP’s Construction Stormwater General Permit before land disturbance. Activities placing fill or structures in waters/wetlands may need U.S. Army Corps Section 404 authorization plus Nevada Section 401 water-quality certification from NDEP. Work on state-owned sovereign lands (e.g., structures on the bed of Lake Tahoe) requires authorization from the Nevada Division of State Lands. Development in mapped floodplains requires a local floodplain permit. - Insurance requirements.
Nevada’s Industrial Insurance (Workers’ Compensation) laws require employers with one or more employees to maintain coverage (with limited statutory exemptions). Proof of coverage is commonly required on public works. There is no universal statewide general-liability mandate for all contractors, but owners (especially public owners) and prime contracts often set minimum GL limits. - Public works bidding and prequalification.
State goods/services solicitations are posted and conducted via NevadaEPro (State Purchasing). SPWD requires qualification of bidders for state building projects before bid. NDOT conducts electronic highway/bridge lettings through its E-Bidding Portal (AASHTOWare/ Bid Express) and requires contractor prequalification—typically for projects over $250,000—before bidding. - Bid security and final bonds.
Nevada public works solicitations typically require bid security (often 5%) as stated in the agency’s instructions; always check the specific bid. After award, performance and payment bonds must be furnished under NRS 339—each in an amount set by the public body but not less than 50% of the contract (many owners require 100%). Sureties must be authorized to do business in Nevada.
Nevada Bid Network
Contractors and suppliers looking for State work in Nevada track two main platforms:
- NevadaEPro (State Purchasing Division). NevadaEPro is the State’s e-procurement portal for vendor registration, maintaining company profiles and commodity codes (NIGP), viewing/responding to online solicitations, and managing awards. Vendors must register in NevadaEPro to submit quotes/bids and can opt in to email notifications when opportunities matching their profile are posted.
- NDOT Bid Letting via AASHTOWare Project Bids/Bid Express. All highway, bridge, and maintenance lettings for the Nevada Department of Transportation (NDOT) are advertised on NDOT’s Contract Services pages. Bidders prepare proposals with AASHTOWare Project Bids and submit electronically through Bid Express, including electronic bid-bond verification. NDOT requires contractor prequalification—generally for projects over $250,000—before bidding. Letting schedules, addenda, bid results, and award information are posted online.
Because NevadaEPro and NDOT’s Bid Express workflows are designed for government-to-business (G2B) and business-to-business (B2B) transactions, they do not facilitate direct consumer sales. By registering in NevadaEPro and keeping your vendor and commodity data current, you gain statewide visibility and automatic alerts for matching State solicitations. For local government opportunities, many Nevada cities, counties, and districts use the Nevada Government eMarketplace (NGEM), a no-cost registration that centralizes notices from participating local entities.
Succeed in the Nevada Construction Bidding Process
To succeed in the Nevada 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.
Call Us Today
Our surety bond professionals will help you grow your revenue by maximizing your surety capacity. Call us today!
