Overview

To access the Bid Pricing Strategy tab, navigate to the Estimate area and select the Bid Pricing Strategy tab.

The typical bid closing process involves three estimate tabs:

1. On the Bid Pricing Strategy tab, you determine values for bond, overhead, profit, and in some cases, indirect costs.
2. On the Distribution Strategy tab, you choose the pay items where the previously calculated values are to be distributed, and specify a method of distribution to be used.
3. On the Item Pricing tab, you perform the distribution, and make any necessary manual adjustment to your item prices.

The Bid Pricing Strategy tab is the first step in the bid closing process. Here, you can determine values for indirect cost, bond, overhead, profit, and bid level taxes. You can also enter Adds/Cuts, and specify unique distribution schemes for each (provided you are cutting direct cost).

Setting Calculation Methods

The Determining values area contains a tree view that displays the types of values that you can calculate in your current estimate. The settings that specify the manner in which these values are calculated within your current estimate are stored in Estimate Options.

If necessary, you can change the calculation methods for the following values:

Change the calculation method for indirects

1. On the Estimate command tab, select Options > Estimate Options.
2. Select the Estimate Properties folder, select the Bid Pricing folder, then select the Indirect Cost Settings page.
3. Specify your preferred method of indirect calculation for your current estimate. Your choices are described here.
4. Select OK to close Estimate Options.

Change the calculation method for overhead

1. On the Estimate command tab, select Options > Estimate Options.
2. Select the Estimate Properties folder, select the Bid Pricing folder, then select the Overhead Settings page.
3. Specify your preferred method of indirect calculation for your current estimate. Your choices are described here.
4. Select OK to close Estimate Options.

Change the calculation method for profit

1. On the Estimate command tab, select Options > Estimate Options.
2. Select the Estimate Properties folder, select the Bid Pricing folder, then select the Profit Settings page.
3. Specify your preferred method of indirect calculation for your current estimate. Your choices are described here.
4. Select OK to close Estimate Options.

Determining Values

Once you have chosen the methods for calculating indirects, overhead, and profit within your current estimate, you can proceed to determine the actual dollar values for the following:

Indirects

1. Select the Indirect Cost node on the tree view. (This node is not visible if you are using indirect items to detail your indirect cost.)
2. The way that you determine the indirect cost value for your current estimate depends on the settings stored in Estimate Options, on the Estimate Properties | Bid Pricing | Indirect Cost Settings page:

   Setting in Estimate Options	How to Determine the Value
   By entering a dollar value	In the Total indirect cost field, enter a dollar value.
   As a percentage of direct cost	Enter the percentages that will be used to calculate the total indirect cost for your current estimate. The types of percentages that you can enter are also determined by your settings in Estimate Options.
   Multi-level percentage entry by phase, alternate, or work type	Enter unique percentages for individual phases, alternates, or work types. This feature is described in more detail below.

Bond

1. Select the Bond node on the Determining values tree view.
2. To select a different bond table, use the Bond table dropdown to choose the appropriate bond table for your current estimate.
3. To customize a bond table for your current estimate, change the Contract Amounts or Percentages currently shown, or use the New and Delete buttons to add or remove "levels" of calculation. Notice that the bond table now displays a title of "Custom," to reflect that you have made these changes.

B2W Estimate always calculates bond values using an estimate's Target Bid Price, not its Current Bid Price. This is one of the many reasons why it is important to ensure that your bid is always in a balanced state, with as little difference between target and current prices as possible.

Overhead

1. Select the Overhead node on the tree view.
2. The way that you determine the overhead value for your current estimate depends on the settings stored in Estimate Options, on the Estimate Properties | Bid Pricing | Overhead Settings page:

   Setting in Estimate Options	How to Determine the Value
   By entering a dollar value	In the Total overhead field, enter a dollar value.
   As a percentage of total overall cost	Enter the percentage that will be used to calculate the total overhead for your current estimate.
   As a percentage of direct cost, indirect cost, and bond	Enter unique percentages that will be used to calculate overhead, based on the direct, indirect, and bond costs of your current estimate. Depending on the setting specified in Estimate Options, you can also enter unique overhead percentages for your direct and indirect cost categories.
   Multi-level percentage entry by phase, alternate, or work type	Enter unique percentages for individual phases, alternates, or work types. This feature is described in more detail below.

Profit

1. Select the Profit node on the tree view.
2. The way that you determine the profit value for your current estimate depends on the settings stored in Estimate Options, on the Estimate Properties | Bid Pricing | Profit Settings page:

   Setting in Estimate Options	How to Determine the Value
   By entering a dollar value	In the Total profit field, enter a dollar value.
   By entering a dollar value per Man Hour	Enter the dollar amount that will be used to calculate the total profit for your current estimate.
   By entering a dollar value per Crew Day	Enter the dollar amount that will be used to calculate the total profit for your current estimate.
   As a percentage of total price	Enter the percentage that will be used to calculate the total profit for your current estimate.
   As a percentage of total price less subcontracted cost	Enter the percentage that will be used to calculate the total profit for your current estimate.
   As a percentage of total price less bid-level taxes	Enter the percentage that will be used to calculate the total profit for your current estimate.
   As a percentage of total price less bid-level taxes and subcontracted cost	Enter the percentage that will be used to calculate the total profit for your current estimate.
   As a percentage of total overall cost	Enter the percentage that will be used to calculate the total profit for your current estimate.
   As a percentage of direct cost, indirect cost, and bond	Enter unique percentages that will be used to calculate profit, based on the direct, indirect, bond, and overhead costs of your current estimate. Depending on the setting specified in Estimate Options, you can also enter unique profit percentages for your direct and indirect cost categories.
   Multi-level percentage entry by phase, alternate, or work type	Enter unique percentages for individual phases, alternates, or work types. This feature is described in more detail below.

Bid-Level Taxes

1. Select the Bid-Level Taxes node on the tree view.
2. Configure your current estimate's tax schemes as follows:
   • Add a Bid-Level Tax: Select Add, place checkmarks next to the Bid-Level Taxes you want, and select OK.
   • Create a new Bid-Level Tax: Select New and enter a Tax Name and Tax Percent.
   • Delete a Bid-Level Tax: Select the record selector for the tax, select Delete, and select OK.
3. In the Calculate bond using field, choose whether bond in your current estimate should calculate on Total Bid Price Including Bid-Level Tax or Total Bid Price Excluding Bid-Level Tax.
4. To indicate that certain portions of your estimate are exempt from bid-level tax calculations, place a checkmark next to Exempt specified direct costs from bid-level taxes, then select from the following two options:
   • Exempt cost of specific cost categories - Choose this option to exclude entire cost categories - such as subcontracted, trucking hired, or trucking owned - from your bid-level tax calculations within this estimate. This option is useful when subcontractors have already included bid-level taxes in their quoted prices.
   • Exempt cost of individually selected items and tasks - Choose this option to exclude only the direct costs from specific items from your bid-level tax calculations within this estimate. When this option is selected, a "Tax exempt" check box will appear on the Estimate Detail tab when viewing any estimate item or task.

If you choose to exempt cost categories, items, or tasks from bid-level tax calculations, the total tax dollar amount as shown on the private bid form may not appear to be the mathematical extension of {total bid price * tax percent}. This is to be expected, as the exempt portions of your estimate do not contribute to the bid-level tax calculation.

Entering Percentages at the Group Level

If you have specified in Estimate Options that your current estimate will allow multi-level entry of percentages for the calculation of indirect costs, overhead, or profit, then you can enter those percentages at the group level as follows:

1. Select the {Indirect Cost, Overhead or Profit} node on the tree view, and proceed to set a default calculation scheme as described above.
2. On the tree view, select the plus sign near the value type node that you configured in step one. Group nodes will appear as children of the parent value node, representing the {phases, alternates, or work types} that are present in your current estimate.
3. Select one of the child nodes mentioned in step 2.
4. Specify whether the calculation scheme for this child node is the same as the parent's scheme (as configured in step 1) or a unique scheme of its own. If you choose a unique scheme, you can configure that scheme now.
5. Repeat steps 3 and 4 for all child nodes within your value type. Note that the icon for each child node reflects the type of calculation scheme assigned to it:
   • indicates that the child node is using the parent node's calculation scheme.
   • indicates that the child node has been given a unique calculation scheme.

Adds/Cuts

The Adds and Cuts feature allows you to make adjustments to your current estimate by adding or subtracting dollar values for direct cost categories, indirect cost, overhead, profit, and bond.

Learn more about adds/cuts