Pre-Construction Services Bidding Guide 2025: Win More CM/GC Contracts
Master pre-construction services proposals. Learn how to price preconstruction, demonstrate value, and win CM/GC and design-build opportunities.
Quick Answer: What Are Pre-Construction Services?
Pre-construction services are early contractor involvement activities before construction begins, including estimating, scheduling, constructability review, and value engineering. Common in CM/GC and design-build projects, preconstruction helps refine designs, control costs, and reduce risks. Fees typically range from 0.5% to 2% of construction value.
What Are Pre-Construction Services?
Pre-construction brings contractor expertise into the design phase:
Value to Owners
- • Early cost certainty
- • Constructability input during design
- • Value engineering savings
- • Risk identification and mitigation
- • Schedule optimization
- • Better coordination
Value to Contractors
- • Early project involvement
- • Influence on design decisions
- • Better understanding of scope
- • Reduced construction phase risk
- • Path to construction contract
- • Relationship building
Common Project Delivery Methods
CM/GC
Construction Manager/General Contractor
CMAR
Construction Manager at Risk
Design-Build
Single entity design and construct
Typical Pre-Construction Scope
Pre-construction services typically include:
Core Services
Cost Estimating
Progressive estimates at design milestones (30%, 60%, 90%, 100%). Quantity takeoffs, pricing, market analysis.
Scheduling
Preliminary schedules, phasing studies, milestone planning, critical path analysis.
Constructability Review
Design review for buildability, coordination issues, sequencing concerns, practical field issues.
Value Engineering
Cost reduction alternatives, material substitutions, system alternatives while maintaining quality.
Risk Assessment
Identify project risks, mitigation strategies, contingency recommendations.
Trade Coordination
Early subcontractor input, long-lead item identification, market outreach.
Additional Services
- • Site logistics planning
- • Permit strategy
- • Sustainability analysis
- • BIM coordination
- • Subcontractor prequalification
- • Early procurement
- • LEED/sustainability consulting
- • Life cycle cost analysis
- • Quality planning
Pricing Pre-Construction Services
Pre-construction pricing approaches vary:
Percentage of Construction
- • Simple to calculate and understand
- • Typically 0.5% - 2% of construction value
- • Higher for complex or smaller projects
- • Lower for larger, simpler projects
- • May adjust as scope changes
Lump Sum Fee
- • Fixed price for defined scope
- • Clear budget for owner
- • Risk of scope creep
- • May need change orders
- • Good for defined timelines
Hourly/Cost Plus
- • Bill actual time and expenses
- • Flexibility for changing scope
- • Usually with not-to-exceed cap
- • Requires detailed tracking
- • Owner has less cost certainty
Hybrid Approach
- • Lump sum for core services
- • Hourly for additional services
- • Common in government work
- • Balances certainty and flexibility
- • Clear scope boundaries needed
Pricing Considerations
Consider project duration, complexity, travel requirements, estimating workload, number of design phases, owner meeting frequency, and level of value engineering expected. Longer preconstruction phases require more sustained staffing.
Proposal Content for Preconstruction
Your proposal should demonstrate value, not just process:
Key Proposal Sections
Project Understanding
Show you understand the project goals, challenges, and owner priorities. Reference specific site or program issues.
Preconstruction Approach
Describe your process for each service. Show deliverables, meeting cadence, and how you add value beyond checking boxes.
Team Qualifications
Highlight preconstruction-specific experience of your team. Include estimators, schedulers, and project managers who will be involved.
Similar Project Experience
Show successful preconstruction on similar projects. Include outcomes: cost savings achieved, schedule improvements, risks avoided.
Differentiators to Highlight
- • Specific value engineering ideas for this project
- • Local market knowledge and subcontractor relationships
- • Innovative tools or technology (BIM, cost databases)
- • Track record of accurate estimates
- • GMP conversion success rate
Winning Strategies
Show Early Value
Include preliminary observations about the project in your proposal. Identify one or two value engineering opportunities or risks you have already spotted. Demonstrate you are thinking about their project.
Propose the Right Team
Preconstruction is people-intensive. Propose senior, experienced staff who will be hands-on. Owners want direct access to decision-makers, not junior staff.
Quantify Past Success
Provide specific examples: “Our VE process saved $2.3M on Hospital X without reducing scope.” Numbers are more compelling than generalities.
Address GMP Transition
Explain how preconstruction leads to a fair GMP. Owners want confidence that the GMP will be realistic and that there will not be surprises.
Transition to Construction
The goal of preconstruction is usually a construction contract:
GMP Development Process
Progressive Estimates
Develop estimates at each design milestone. Track changes and trends. Reconcile with owner budget and make scope adjustments as needed.
Subcontractor Input
Engage key subcontractors for pricing as design develops. May include early bid packages or prequalification.
GMP Proposal
At appropriate design completion (often 60-90%), prepare GMP proposal with defined scope, exclusions, allowances, and contingency.
Negotiation
Work with owner to finalize GMP. May involve value engineering, scope refinement, or phasing adjustments to meet budget.
If GMP Is Not Reached
Most contracts allow the owner to not proceed with GMP. Know what happens in this scenario — you typically keep the preconstruction fee but lose the construction opportunity. Build trust during preconstruction to maximize conversion to construction.
Frequently Asked Questions
Is preconstruction fee negotiable?
Yes, though competitive solicitations may score on fee. Focus on demonstrating value rather than undercutting on fee. A low fee that results in understaffing hurts both parties.
Can we bid on construction if preconstruction does not convert?
Depends on the contract. Some preconstruction agreements include exclusivity for construction; others allow open competition. Review the solicitation and contract carefully.
How much staffing is typical for preconstruction?
Varies widely. A $50M project might need a half-time project manager, quarter-time estimator, and access to schedulers and specialists. Larger or more complex projects need more dedicated resources.
What if the design changes significantly?
Major scope changes typically justify additional preconstruction fee. Include provisions in your contract for scope changes that require substantial re-estimating or re-scheduling.
Find CM/GC Opportunities
BidFinds helps you discover preconstruction and CM/GC opportunities that match your capabilities. Build relationships through early involvement.
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