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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 Kansas 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 Kansas 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 Kansas Construction Bidding?
Kansas, like many Midwestern states, does not issue a single statewide general contractor license. Instead, contractors must hold any trade-specific credentials that the state regulates—such as asbestos or lead abatement certifications issued by the Kansas Department of Health & Environment. They must also satisfy the licensing rules set by the city or county where the work is performed. Firms formed outside Kansas must also register with the Secretary of State and obtain a Certificate of Authority before transacting business in the state.
To bid as a prime contractor on any state-owned building project, you must hold an active pre-qualification issued by the Department of Administration’s Office of Facilities & Property Management (OFPM). Contractors submit Form DCC-840, which is evaluated for financial capacity, safety record, and past performance; approval must be on file before bid opening and remains in force unless suspended through probation or debarment.
The Kansas Department of Transportation (KDOT) requires annual pre-qualification for every firm (prime or subcontractor) that wants to bid on state highway work. Applicants file DOT Form 208 and must renew each year.
Most Kansas awarding authorities ask bidders to post a bid bond or certified check—typically 5% of the bid price—to demonstrate good faith and financial responsibility.
Kansas’ “Little Miller Act” commands a combined performance-and-payment bond equal to 100% of the contract amount on every public-works contract exceeding $100,000. The bond guarantees completion of the work and full payment to subcontractors, suppliers, and laborers; agencies may impose the same requirement on smaller projects at their discretion.
Taken together, local licensing rules, state pre-qualification programs, and statutory bonding safeguards ensure that Kansas public-works dollars are spent with qualified, financially stable contractors while protecting everyone down the payment chain. Partnering with an experienced surety-bond professional can help you navigate the pre-qualification process and secure bid, performance, and payment bonds at competitive rates—an important edge when margins are tight.
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 Kansas Construction Bidding Process
- Kansas issues no universal “general-contractor” credential. Instead, trade work that the state regulates—chiefly asbestos or lead abatement through the Kansas Department of Health & Environment (KDHE)—requires the appropriate KDHE certification. All other contractor licensing is handled by the city or county that controls the jobsite. Out-of-state firms must register with the Kansas Secretary of State for a Certificate of Authority, and any contractor that sells taxable goods or materials must obtain a Kansas sales-tax registration number through the Department of Revenue’s Business Tax Registration portal.
- Kansas is a home-rule state, meaning there is no mandatory statewide building code for private construction. Local jurisdictions adopt and amend the International Building, Residential, and Energy Conservation Codes to suit local needs. The State Fire Marshal does prescribe code standards for certain state-owned facilities and public schools; school construction, for instance, must meet at least the 2000 IBC as referenced in K.S.A. 31-150.
- Land-disturbing work that impacts “waters of the United States” cannot proceed until KDHE issues a Section 401 Water Quality Certification and the U.S. Army Corps of Engineers grants the companion Section 404 dredge-and-fill authorization. Separately, any dam, stream crossing, levee, or flood-plain fill usually needs a Stream Obstruction or Floodplain Fill Permit from the Kansas Department of Agriculture’s Division of Water Resources.
- The Kansas Workers’ Compensation Act requires every employer with an annual payroll exceeding $20,000 (in-state and out-of-state wages combined) to maintain workers’ compensation insurance, subject to narrow exemptions for certain agricultural and real-estate occupations. Kansas law does not compel contractors to carry commercial general liability coverage, but owners, lenders, and many local licensing boards make it a contractual or licensing prerequisite.
- Projects costing more than $100,000 are advertised and awarded through the Department of Administration’s Office of Facilities & Property Management (OFPM) using sealed competitive bids. Prime bidders must hold an active OFPM pre-qualification (Form DCC-840) before the bid opening, and major subcontractors may be asked to show the same. For highway and bridge work, every firm—prime or sub—must renew an annual KDOT pre-qualification (DOT Form 208) to appear on the letting list. Under K.S.A. 75-3739, any purchase (including construction) estimated at over $50,000 must be let by sealed bid with at least ten days’ notice in the Kansas Register.
- Kansas’ bonding statute requires contractors awarded a state or local public-works contract exceeding $100,000 to post a performance bond. Awarding authorities may impose the same obligation on smaller jobs. Standard OFPM front-end documents also call for a 5% bid bond or cashier’s check with each proposal. Together, these instruments protect public funds, guarantee contract completion, and ensure that subcontractors, suppliers, and laborers are paid in full.
Kansas Bid Network
In Kansas, contractors and suppliers find most state-level bidding opportunities on the State of Kansas eSupplier Public Portal, the PeopleSoft-based system run by the Department of Administration’s Office of Procurement & Contracts (OPC). The portal lists every competitive solicitation—Invitations for Bids (IFB), Requests for Proposals (RFP), Requests for Qualifications (RFQ), and Requests for Information (RFI)—along with amendments, bid-tab results, and contract-award notices. It also includes a “Contract Search” tile that lets anyone search executed state contracts and attachments in real-time.
Kansas’ e-procurement framework is anchored in K.S.A. 75-3739 and 75-37,102, which mandate open, competitive purchasing methods (sealed bidding or negotiated “best-value” procurements) unless a statutory exemption applies. OPC must publish notice of any sealed-bid event estimated above $50,000 in the Kansas Register for at least ten days. The director of purchases posts award information and handles protests in accordance with the same statutes.
While the eSupplier portal handles most state-agency and university needs, transportation and highway construction contracts are advertised and bid electronically through the Kansas Department of Transportation’s Bid Express site. KDOT posts proposal documents, plan sets, addenda, “as-read” results, historical bid tabs, and apparent-low-bid data. Contractors must maintain an active Bid Express account and meet KDOT procedures to submit electronic bids.
The system supports government-to-business (G2B) and business-to-business (B2B) transactions only; it is not designed for retail consumer sales.
Succeed in the Kansas Construction Bidding Process
To succeed in the Kansas 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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