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Public bid assembly: 7 checks on scope and securities

CostDay Editorial Team · Posted · 10 min read

Check filing place, prequalification, complete scope with named sub-bids, bond premiums, whole-project cost, sealing and bid security before you file a public construction bid.

Key takeaways for what should i check when assembling a public construction bid?

  • Treat filing, prequalification, scope, premiums, cost, sealing, and security as separate checks.
  • The General Court of the Commonwealth of Massachusetts prescribes one place for general bids and one for sub-bids, which need not be the same. That same source requires that the cost of requested subcontractor bond premiums is included in the bid amount. Do not conflate the bond premium with the bid bond itself.
  • Missouri Revisor of Statutes states that certain provisions do not apply when the engineer's estimate or accepted bid for total project cost is seventy-five thousand dollars or less. This threshold tests the whole project, not individual subcontracts.
  • Virginia Law caps the bid bond amount at five percent of the amount bid. This is a ceiling on the bond face value, not an insurance premium or purchase price.
  • The North Carolina General Assembly specifies that a deposit is retained if the successful bidder fails to execute the contract within 10 days after award or fails to provide satisfactory surety. This addresses post-award security, not bid submission deadlines.

Public bid assembly: the checks to match to your state

The seven checks below connect specific state provisions to the bid amounts and documents they affect. They are not a single nationwide checklist; each jurisdiction sets its own rules. Use this table to verify that your bid filing, prequalification, scope, premiums, total cost, sealing and security terms align with the applicable statute.

Check What to verify
1 Bid filing location The prescribed place for submitting the bid documents.
2 Required bidder prequalification Whether the bidder must meet specific qualification standards before bidding.
3 Scope and subcontractor amounts That the bid covers the complete work and lists named sub-bidders with their amounts.
4 Subcontractor bond premiums Inclusion of any requested bond premiums for subcontractors.
5 Whole project cost The total project cost, including paid work and purchased materials, with no division into contracts made to lower that cost below the threshold.
6 Sealed bid handling Proper sealing and handling of the bid prior to opening.
7 Bid security terms The specific terms, caps and forfeiture limits for the bid security.

Use the seven checks in this guide to reconcile one current bid's scope, subcontractor amounts and security terms against the supplied provisions that apply to its jurisdiction.

Before assembly, identify filing locations and prequalification

Start by confirming the prescribed filing locations where you must submit your documents. According to The General Court of the Commonwealth of Massachusetts, the awarding authority prescribes one place for general bids and one place for sub-bids. These two locations do not need to be the same. Verify the specific addresses provided in the invitation before you begin packaging your proposal.

Next, check whether the project requires prequalification for the general contractor. For projects where prequalification is required, or where the awarding authority has elected to prequalify general contractors, the authority requests bids only from general contractors who have been prequalified. This requirement applies pursuant to subsections (a) to (j) of section 44D1/2. If your firm is not on the prequalified list for the project under the cited provisions, you cannot submit a general bid.

Finally, verify the prequalification status for any subcontractors you intend to include. When prequalification of subcontractors is required, or when the awarding authority has elected to prequalify them, bids are requested only from subcontractors who have been prequalified pursuant to subsections (a) to (j) of section 44D3/4. Ensure every named subcontractor on your bid meets this specific prequalification standard.

Confirm these three items: the general bid filing address, the sub-bid filing address, and the prequalification status of both your firm and your subs. If any of these elements are missing or incorrect, the bid may not be accepted.

During assembly, reconcile scope, sub-bids and bond premiums

When assembling a bid under The General Court of the Commonwealth of Massachusetts, ensure the total price covers the complete work as specified. The bid must list the names of sub-bidders and the specific amounts of their sub-bids. The general contractor is selected based on these general bids. If the bid form lacks specific spaces for certain items, the bid is not rejected for missing prices or information on those items. However, this exception does not apply to prices or information required by the section.

Verify that your bid includes the premiums for performance and payment bonds furnished by sub-bidders as requested. The cost of all such premiums must be included in the amount set forth in Item 1 of the bid. The undersigned agrees to pay these premiums. Additionally, the undersigned agrees that each named sub-bidder will be used for the indicated work at the stated amount, unless a substitution is made. See Construction bonding checklist: 5 checks for bid pricing.

Check that your scope matches the specified work exactly. Do not omit sub-bidders or their amounts. Ensure bond premiums are calculated and added to the main bid amount. Confirm that the named sub-bidders are committed to the stated prices. If the awarding authority's form lacks a space for a required item, you must still provide it to avoid rejection.

During price review, establish Missouri whole-project cost

When your bid targets a Missouri public works project, the first check is whether the project falls under the exemption threshold. According to the Missouri Revisor of Statutes, the provisions of sections 290.210 to 290.340 do not apply to the construction of public works for which either the engineer's estimate or the bid accepted by the public body for the total project cost is in the amount of seventy-five thousand dollars or less. To determine if this threshold applies, you must calculate the total project cost based on the entire project, not individual projects within a larger project. This boundary ensures that the cost assessment reflects the full scope of the undertaking rather than fragmented components.

The calculation of this total project cost includes specific value components. The statute requires that the total project cost include the value of work performed on the project by every person paid by a contractor or subcontractor for that person's work on the project. Additionally, the total project cost shall include all materials and supplies purchased for the project. Therefore, your price review must aggregate both the value of work performed by every person paid by a contractor or subcontractor and the cost of all purchased materials and supplies to arrive at the correct total. See Public bid labor: 6 checks before you lock costs.

A critical restriction exists regarding how projects are structured. A public body shall not divide a project into multiple contracts for the purpose of lowering the total project cost below the threshold described in subsection 5 of this section. This prohibition prevents the artificial splitting of a single project into smaller contracts to artificially reduce the stated total project cost. When assembling your bid, ensure your scope and pricing reflect the unified nature of the project to comply with this requirement.

To apply these rules, verify that your project's total cost, including all labor and materials, is calculated as a single entity. The exemption applies when either the engineer's estimate or the accepted bid for the whole project's total cost is seventy-five thousand dollars or less. Confirm that no contract division has occurred to lower the cost below the threshold. Use this calculation to determine which set of bidding rules applies to your specific bid.

State bid assembly reference table

Use the table below to verify jurisdiction-specific thresholds before finalizing your bid documents.

Publisher Key Provision Threshold or Limit
The General Court of the Commonwealth of Massachusetts Prescribed bid filing locations The General Court of the Commonwealth of Massachusetts requires one place for general bids and one for sub-bids
Missouri Revisor of Statutes Project cost exemption Missouri Revisor of Statutes exempts a project from sections 290.210 to 290.340 when either the engineer's estimate or the accepted bid for total project cost is seventy-five thousand dollars or less
North Carolina General Assembly Deposit retention North Carolina General Assembly retains the deposit if execution fails within 10 days after award
Virginia Law Bid bond ceiling Virginia Law caps the bond amount at five percent of the amount bid

Check the specific filing location prescribed by the awarding authority for your project. Verify if the total project cost falls under the Missouri exemption threshold. Confirm the sealed bid handling and deposit terms for North Carolina projects. Ensure your bid bond amount does not exceed the Virginia cap.

After assembly, review sealing and bid security

The example row shows the seven checks in plain words.

Review point What to line up
Example Prescribed filing places, prequalification for the project, complete scope with named sub-bids, bond premiums inside the bid amount, whole-project cost, a sealed package, and bid security terms

For North Carolina projects, North Carolina General Assembly G.S. 143-129 requires bids to be sealed. The statute states that opening an envelope or package known to contain a bid, or disclosing its contents without the bidder's permission before the set opening time, constitutes a Class 1 misdemeanor. Verify that your submission package remains sealed until the designated opening time to comply with this handling requirement. See Sealed bid submission checklist: 6 checks to run.

For Virginia projects, Virginia Law § 2.2-4336. Bid bonds; construction contracts limits forfeiture under a bid bond. The limit is the lesser of the difference between the bid for which the bond was written and the next low bid, or the face amount of the bid bond. Check your bond face amount and the next low bid to understand the maximum potential forfeiture amount.

Read the example row against your bid documents before you submit.

Review the example row to ensure every jurisdiction-specific requirement is addressed before submitting the bid.

Illustrative example of the seven checks

File the general bid in one prescribed place and the sub-bids in one place. Leave the package sealed. Hold the bid bond to five percent of the amount bid. If the next low bid is 880, forfeiture stays at the lesser of that gap or the face amount.

Do this before you file

Today, write down the prescribed filing places, each named sub-bid amount, and the bid security face amount, then match them to the seven checks.

Related guides: Public construction bid requirements: 9 rules for prices · Check 8 public bid rules before you submit.

FAQ: public bid assembly and state applicability

What does public bid assembly need to include? According to The General Court of the Commonwealth of Massachusetts, general bids must cover the complete work as specified.

Does Massachusetts require prequalification for every public construction bid? The General Court of the Commonwealth of Massachusetts requires prequalification for projects where it is required or where an awarding authority has elected to prequalify general contractors pursuant to section 44D1/2. In those cases, the awarding authority requests bids only from prequalified general contractors.

How does Missouri define the total project cost for its prevailing wage exemption? Missouri Revisor of Statutes defines total project cost based on the entire project. It does not rely on individual projects within a larger project.

Can Virginia require a bid bond below its stated project thresholds? Yes. Virginia Law states that nothing precludes a public body from requiring bid bonds for contracts anticipated to be less than $500,000 for nontransportation-related projects. It also applies to contracts less than $350,000 for transportation-related projects authorized under Article 2 (§ 33.2-208 et seq.) of Chapter 2 of Title 33.2 and partially or wholly funded by the Commonwealth.

When can North Carolina retain a successful bidder's deposit? The North Carolina General Assembly retains the deposit if the successful bidder fails to execute the contract within 10 days after the award. It is also retained if the bidder fails to give satisfactory surety as required.

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