Exclusions in Construction Job Bids

In the construction industry, every project starts with a bid, a detailed proposal that outlines the scope of the work, the cost of labor and materials, and the project timeline. While bids are designed to give clients a complete picture of the project costs, they often include a list of ‘exclusions’. These are items or services not included in the bid and hence, not covered under the quoted cost. Knowing these exclusions is crucial in managing expectations, maintaining transparency, and avoiding unexpected expenses. Let’s delve into the typical exclusions you might find in a construction job bid.

1. Permits and Fees: The need for permits and the associated costs can vary significantly from one locale to another. Often, these are excluded from a bid because it’s difficult to predict these costs upfront. This can include building permits, utility permits, and impact fees. It’s usually the client’s responsibility to understand their local permit requirements and cover these costs.
2. Site Preparation: Depending on the state of the project site, significant preparation work may be needed, such as clearing, grading, or even demolishing existing structures. While some bids may include basic site prep, more intensive or unforeseen work is usually listed as an exclusion.
3. Utility Connections: The process of connecting utilities (electricity, gas, water, and sewage) can often be complex and varies from one job to another. Many contractors exclude this from their bids due to the unpredictable costs and complications.
4. Landscaping and External Works: While the main focus of a construction bid is often the structure itself, there might be a need for landscaping or external works like fences, outdoor lighting, or paving. Unless specifically included, these tasks are usually treated as exclusions.
5. Contingencies for Unforeseen Conditions: The construction industry is full of surprises – unanticipated soil conditions, hidden asbestos, archaeological findings, or even errors in original building plans can drastically affect project costs and timelines. These contingencies are often listed as exclusions in a bid.
6. Fixtures, Fittings, and Equipment (FF&E): While the bid might include costs for major fixtures and fittings, it may not cover all types of FF&E. These can include items like appliances, window treatments, furniture, or specialized equipment, which are typically client-specific choices.
7. Design Changes Post-Bid: If changes are made to the design or the scope of work after the bid is submitted, these alterations are not included in the original quote. Any variation to the initially agreed-upon plans will usually incur additional costs.
8. Professional Fees: Many construction projects require the involvement of other professionals such as architects, engineers, or surveyors. Unless expressly stated, their fees are often excluded from the construction bid.
9. Hazardous Material Handling: The discovery and subsequent handling of hazardous materials, such as asbestos or lead paint, can be a costly affair. Due to the unpredictability of these findings, they are typically listed as exclusions in the bid.
10. Insurance and Bonding: Though construction bids usually include basic insurance costs, any special insurance or bonding requirements, such as performance bonds or increased liability insurance, are generally not included in the bid.

By understanding these common exclusions in a construction bid, clients can avoid unexpected costs and delays. Contractors, on the other hand, can ensure they provide a comprehensive and transparent bid, maintaining a good relationship with their clients. Always remember, the goal of a bid is not just to win a project, but to lay the foundation for a successful, profitable job, free from misunderstandings and disputes. This is where the fine print, in the form of bid exclusions, becomes invaluable.

ProfitDig makes it easy to add exclusions to your bids. You can even clone a bid multiple times or use it as a template for future bids with your exclusions language already in place. Try it today! No contract required. Cancel any time.