You've got the plans. Now it's time to find out what it will actually cost to build them.
You've spent months planning your future home, making decisions, and working through the design process. Your construction drawings are complete, and you're ready to find someone to build it. So, what's next?
You could email your plans to a few builders with a quick "How much would this cost?" and hope for the best. But chances are, you'll receive estimates with different levels of detail, different assumptions, and numbers that are nearly impossible to compare.
There's a better way to approach this: a Request for Proposal (RFP).
An RFP is a formal request asking qualified builders to submit pricing and other information for your project based on a consistent set of documents and expectations. It doesn't need to be complicated, but a little organization now can save you quite a few headaches later.
What Is an RFP, and Why Do You Need One?
An RFP outlines what you're asking a builder to price, what information they should provide, and when you expect a response.
Think of it as giving everyone the same assignment. If you ask three people to bake you a cake but don't specify the size, flavor, or decorations, you shouldn't be surprised when you get three wildly different cakes—and prices.
Construction is a little more complicated than cake, but the principle is the same.
A well-prepared RFP helps you:
Give every builder the same project information.
Establish clear expectations for pricing and scheduling.
Identify what's included and excluded from each proposal.
Compare builders based on more than the final number.
Reduce misunderstandings before construction begins.
An RFP is especially useful when you're seeking competitive bids from multiple builders. If you've already selected a builder and worked with them throughout design, you may instead use a negotiated pricing process. Either way, clearly documenting the scope and pricing assumptions is important.
Step 1: Make Sure Your Plans Are Ready
Before requesting bids, make sure your construction documents are sufficiently complete for accurate pricing.
Ideally, your plans should identify the building's dimensions, structural systems, exterior materials, major equipment, fixtures, and finishes. Product selections and specifications should be documented wherever practical.
The more decisions you leave unresolved, the more assumptions your builders will need to make.
Those assumptions often appear as allowances, which are budgeted amounts for items that haven't been fully selected or priced. Allowances aren't inherently bad, but they can make bids difficult to compare and lead to unexpected costs later.
For example, if one builder includes a $10,000 cabinetry allowance and another includes $25,000, their total prices aren't directly comparable.
My preference is to complete as many design decisions as possible before bidding. Construction is expensive enough without treating it as an extended shopping trip.
If you've purchased a set of house plans rather than working directly with an architect, confirm that the drawings have been adapted as necessary for your site, local building requirements, and intended construction methods. Purchased plans are not automatically complete, permit-ready construction documents.
Step 2: Identify Qualified Builders
Before distributing your RFP, develop a shortlist of builders who are appropriate for your project.
I recommend starting with approximately three to five qualified companies. You want enough proposals to compare, but not so many that you're managing a small administrative circus.
Look for builders who:
Have experience with homes of similar size, complexity, and budget.
Work in your geographic area.
Can provide references from recent clients.
Carry appropriate insurance and meet applicable licensing requirements.
Have the availability to take on your project.
Contact each company before sending the full RFP. Briefly describe the project, anticipated schedule, and location, and ask whether they're interested in submitting a proposal.
If they aren't interested or available, that's useful information to learn early.
And if your architect has worked with local builders, ask for recommendations. Architects often have firsthand experience with how builders communicate, coordinate, and respond when problems arise.
Step 3: Assemble Your RFP Package
Your RFP doesn't need to be a 50-page document. In most cases, a concise cover letter or project summary, accompanied by the relevant drawings and supporting documents, is sufficient.
I recommend including the following:
Project Overview
Provide a brief description of the proposed home, including:
Project name and location.
Approximate square footage and number of stories.
General construction type.
Anticipated construction start date.
Any unusual site conditions or project requirements.
Construction Documents
Include the current drawing set, applicable specifications, and relevant supporting information such as surveys, geotechnical reports, or site documentation.
Every builder should receive the same documents and revisions.
If the drawings are updated during bidding, issue the revised information to everyone so that pricing remains consistent.
Scope of Work
Clearly identify what you're asking the builder to include.
For example, are they responsible for site preparation, utility connections, landscaping, driveways, and final cleanup? Will you be purchasing any materials or hiring specialty contractors directly?
Don't assume an item is included simply because it seems obvious.
Pricing Requirements
Ask builders to provide an itemized breakdown of their proposed construction cost, including:
Base construction price.
Allowances and their associated amounts.
Exclusions and assumptions.
Optional alternates.
Applicable taxes, overhead, and profit.
Proposed payment structure.
You can provide a standardized bid sheet to make comparisons easier.
Schedule and Qualifications
Request the builder's anticipated start date, estimated construction duration, relevant experience, project management contacts, and references.
Submission Instructions
Establish a deadline, the preferred format for responses, and a single contact for questions.
Allow enough time for builders to review the documents, contact subcontractors, and prepare meaningful estimates. The appropriate bidding period depends on the project's complexity and the builders' availability, so discuss timing with the companies you're inviting.
Step 4: Distribute the RFP and Manage Questions
Once your package is assembled, send it to your shortlisted builders.
A shared digital folder or individual email with clearly labeled attachments usually works well. Make sure everyone can access the documents and knows which version is current.
During the bidding period, builders will likely have questions.
Some may ask about a missing dimension, a specified product, or an unclear construction detail. Others may suggest alternative materials or construction methods that could reduce costs.
These questions are normal, and they can be valuable.
However, if a question affects the scope or design, make sure the clarification is documented and shared with all bidders.
Your architect can be particularly helpful here. Depending on their agreement with you, they may answer technical questions, issue drawing clarifications, or prepare formal addenda to ensure everyone is pricing the same work.
An addendum is a formal document issued during bidding that clarifies or changes the original bid documents.
Keeping a written record of questions and answers helps prevent misunderstandings when the proposals arrive.
Step 5: Review the Proposals
Once the bids are returned, resist the temptation to immediately circle the lowest number.
The lowest price is not necessarily the best value.
Start by reviewing each proposal for completeness. Did the builder respond to all requested information? Are allowances clearly identified? Are there exclusions or assumptions that significantly change the scope?
Compare the proposals side by side, paying particular attention to:
Total proposed construction cost.
Allowances and exclusions.
Proposed construction duration.
Payment structure.
Warranty provisions.
Experience and references.
Communication and overall responsiveness.
If one bid is significantly lower than the others, investigate why.
The builder may have identified a more efficient construction method, have favorable subcontractor pricing, or simply be missing a substantial portion of the work.
Ask questions before making assumptions.
And remember, you're selecting someone you'll be working with for months. Communication, organization, and trust matter just as much as the initial price.
Step 6: Clarify the Scope Before Signing
After identifying your preferred builder, review any outstanding questions and confirm the scope before entering into a construction contract.
This is the time to resolve discrepancies, confirm allowances, and document any agreed changes.
If pricing exceeds your budget, work with your architect and builder to identify potential adjustments. Changes to the design or specifications should be evaluated and documented before construction begins whenever possible.
Your architect may also assist in reviewing proposals, evaluating substitutions, and confirming that the proposed construction scope aligns with the drawings.
Bidding assistance isn't always included in an architect's original design agreement, so ask what services are available.
Final Thoughts
A well-organized bidding process won't guarantee that your project comes in under budget or that construction will be entirely free of surprises. I would be suspicious of anyone promising either.
What it can do is help you understand what you're purchasing, compare builders more effectively, and enter construction with clearer expectations.
And that's the real goal: fewer assumptions, fewer surprises, and a better working relationship with the people building your home.