Mississippi Construction Bidding Process

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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 Mississippi 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 Mississippi 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? 

1. Bid Solicitation: This is when the project owner or general contractor invites contractors to submit bids. 
2. Bid Submission: Contractors prepare and submit their bids with all necessary details, such as pricing, scope of work, and deadlines. 
3. 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. 
4. Contract Formation: Once the project owner chooses a bid, they will set up a contract with the winning contractor. 
5. 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 Mississippi Construction Bidding? 

Mississippi issues statewide contractor licenses through the Mississippi State Board of Contractors (MSBOC). A commercial contractor’s license is required for commercial work at or above $50,000. Residential builders must be licensed for new residential construction over $50,000, and residential remodelers for residential improvements over $10,000. Electrical, plumbing, mechanical/HVAC, and other trade contractors are licensed by classification through MSBOC. Residential trade subcontractors on home projects must also be licensed. Bidders on public projects over $50,000 must hold a current MSBOC Certificate of Responsibility. 

Before award, vendors should be properly registered to do business with the Mississippi Secretary of State (or qualified as a foreign entity) and must register as suppliers in the state’s MAGIC eProcurement/Supplier Self-Service system administered by the Department of Finance & Administration (MMRS). MSBOC also requires proof that corporations/LLCs are in good standing with the Secretary of State when applying for licensure. 

Bid security is set by the awarding authority. For state building projects, DFA’s Bureau of Building rules require bid security (bid bond or certified check) equal to 5% of the base bid. After the award, Mississippi’s “Little Miller Act” requires performance and payment bonds, each for at least 100% of the contract. For contracts under $25,000, a public owner may elect a lump-sum payment at completion in lieu of bonds. The statute also requires proof of general liability insurance of at least $1,000,000 for state contracts over $5,000 and local contracts over $25,000. 

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 Mississippi Construction Bidding Process

1. State-level credentials and business registration. Mississippi issues statewide contractor licenses through the Mississippi State Board of Contractors (MSBOC). A commercial license (Certificate of Responsibility) is required for commercial work at or above $50,000, including installed equipment. The contractor’s COR number must appear with any public bid over $50,000 (or a statement that the bid does not exceed $50,000). Residential builder licensing is required for new residential construction over $50,000, and residential remodeling/roofing licenses are required for residential improvements over $10,000. Electrical, plumbing, mechanical/HVAC, and other specialties are licensed by classification through MSBOC. State licensure is not required for residential trade work under $10,000, but local permitting may apply. All vendors doing business with the State must register in MAGIC (the state’s eProcurement/Supplier Self-Service system). Business entities should be registered with the Mississippi Secretary of State, and contractors that sell taxable goods/services must obtain a Mississippi sales/use tax permit. (Note: Mississippi also imposes a 3.5% contractor’s tax on most non-residential contracts over $10,000.) 
2. Building codes and plan review. Mississippi’s Building Codes Council and the State Uniform Construction Code require counties and municipalities (with limited statutory exceptions) to adopt as minimum codes one of the last three editions of the IBC and IRC, as amended by the Council. Jurisdictions may adopt newer editions (e.g., 2021/2024) and may amend locally. State-funded vertical construction is managed by the Department of Finance & Administration’s Bureau of Building under its policies and procedures. Separate statutes require certain Gulf Coast counties to enforce wind and flood-mitigation provisions. 
3. Environmental and water resource permits. Construction that disturbs one acre or more must obtain coverage under MDEQ’s Construction Stormwater General Permit before land-disturbing work. Work affecting waters/wetlands typically requires U.S. Army Corps of Engineers authorization and a corresponding Mississippi Section 401 Water Quality Certification from MDEQ. Floodplain development is permitted through local NFIP communities. 
4. Insurance requirements. Mississippi law requires workers’ compensation coverage for employers with five or more employees. For public construction contracts, proof of general liability insurance of at least $1,000,000 is required for state contracts over $5,000 and for local (county/municipal) contracts over $25,000. MSBOC also requires residential builder/remodeler license applicants to maintain general liability insurance (and workers’ compensation if applicable). Additional owner or lender requirements may apply by contract. 
5. Public works bidding and prequalification. For Mississippi public purchases/construction over $75,000, agencies must advertise once per week for two consecutive weeks. Construction bids may not open sooner than 15 working days after the last notice. The state posts awards and contract summaries to DFA’s website, and vendors submit/maintain profiles in MAGIC. MDOT conducts highway lettings on fixed dates via Bid Express and may require prequalification. Bidders must have their Certificate of Responsibility number on file before requesting permission to bid. 
6. Bid security and final bonds. For state building projects, DFA/Bureau of Building instructions require bid security (bid bond or certified check) equal to 5% of the base bid. After the award, Mississippi’s Little Miller Act requires performance and payment bonds, each for not less than 100% of the contract. For contracts under $25,000, a public owner may elect a lump-sum payment at completion in lieu of bonds. 

Mississippi Bid Network 

Contractors and suppliers looking for State and local work in Mississippi track two main platforms: 

• MAGIC eProcurement / Supplier Self-Service (MMRS/DFA). Mississippi’s statewide vendor portal lets suppliers register, maintain a profile with commodity codes, search active RFx (bid) opportunities, submit responses electronically when enabled, and receive email notifications of upcoming opportunities that match their products/services. Public bid and award information is posted through the state’s Procurement Opportunity & Public Notification Search. 
• MDOT Bid Lettings via Bid Express. The Mississippi Department of Transportation advertises highway, bridge, and maintenance lettings on its letting pages. Contractors request permission to bid and then submit electronically through the Bid Express service. MDOT publishes notices, addenda, bid results, and awards for each letting. 

Because MAGIC and MDOT’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 MAGIC and keeping company and commodity data current, vendors gain broad visibility into statewide contracting and can receive automatic notifications when new opportunities align with their profile.  

Succeed in the Mississippi Construction Bidding Process 

To succeed in the Mississippi 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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