Bidding on a plumbing job isn’t just about throwing out a number and hoping for the best. It’s about knowing your costs, understanding your client’s needs, and ensuring your business stays profitable. A well-calculated bid helps you earn more money, build customer trust, and complete work efficiently.
Today, you will learn how to bid a plumbing job correctly. We will cover different pricing models, how to estimate costs accurately, and how to write a bid that wins clients. Whether you are just starting the plumbing business or looking to improve your bidding strategy, this step-by-step way will help you bid smarter and grow your business.
What is a Plumbing Bid?
A plumbing bid is a price estimate that plumbers give customers before starting a job. It tells the customer how much the work will cost, including materials, labor, and other expenses.
Bidding is necessary because customers want to know the cost before they agree to the work. If you bid too high, they might look for a cheaper plumber. If you bid too low, you could work hard without making enough money. A reasonable bid finds the right balance.
How to Bid on Plumbing Job?
To get more plumbing work, the following procedure will help you to bid successfully.
Conducting a Detailed Project Assessment
A detailed project assessment helps you avoid surprises, plan your work better, and give an accurate bid.
Every plumbing work is different. Some are simple, like fixing a leaky faucet, while others are complex, like installing plumbing for an entire house. Before you bid, you need to define the scope.
Start by talking to the client. Ask what they need and what problems they’re facing. Do they need a quick repair, a complete replacement, or a new installation? Understanding their expectations helps you plan properly.
Next, think about special conditions. If you’re working on an older house, the pipes might be outdated and require extra work. If it’s a commercial building, you might need special permits or additional manpower. Defining these details upfront prevents mistakes and helps you set a fair price.
Perform Quantity Takeoff
To create a fair and profitable bid, you must divide costs into three categories: materials, labor, and overhead.
Material Costs
Plumbing jobs require different materials, from pipes and fittings to sealants and water heaters. Start by listing everything needed and checking current supplier prices as costs change. Buying in bulk can save money, and many suppliers offer discounts for large purchases or loyal customers. Comparing quotes ensures you get the best deal.
Labor Costs
Instead of guessing labor time, break down each task. If installing a sink, estimate the time for removal, installation, pipe connections, and leak testing. Calculate labor rates by including wages, taxes, and insurance. Experienced plumbers charge more but work faster, while complex jobs require extra time.
Overhead & Profit Margin
Many plumbers forget overhead costs like insurance, permits, tools, and vehicle maintenance. Whether you have one job or ten, these expenses exist, so include them in your pricing. Once total costs are set, add a profit margin, typically 20-50%, to ensure your business stays profitable and competitive.
Requesting Supplier Quotes
Once you’ve completed your material takeoff and compiled a list of required products, send it to your suppliers and the necessary bid documents. Request a quote as soon as possible since suppliers may take time to finalize their pricing.
Remember that some suppliers delay releasing quotes until just before the bid deadline. This practice helps prevent bid shopping, where contractors seek lower prices from competing suppliers after receiving an initial quote.
Write a Bid Proposal
Once you’ve found a plumbing work opportunity, the next step is to submit a firm bid proposal. A well-written proposal shows professionalism, builds trust, and increases your chances of winning the job. You will list everything including the materials needed, estimated labor time and cost.
Review Your Proposal
Before submitting, have a second set of eyes review your proposal, including all calculations. Verify quantity takeoffs and double-check formulas, especially if using a spreadsheet with sum functions—missing a single cell could result in an incorrect quote.
Compare your pricing with past projects of similar size and scope to ensure consistency. If there is a significant difference, re-evaluate your calculations for possible errors. Additionally, proofread your proposal and check the formatting to provide clarity and professionalism.
Submit Your Proposal
Once your proposal is finalized, submit it using the required bid form specified in the bid documents or Division 01 specifications (if applicable).
After submission, you may be asked to qualify your bid, meaning the general contractor or project owner will verify the scope of work included and excluded in your bid. You might also need to adjust the scope or pricing to align with their contract structure. These requests are common and nothing to be concerned about.
How to Price on Plumbing Work?
Pricing a plumbing job correctly is just as important as doing the job itself. If you charge too much, customers might not hire you. If you charge too little, you won’t make enough money. That’s why choosing the right pricing is essential.
Most plumbers use either hourly pricing or flat-rate pricing to charge for their work. Each method has its benefits, and knowing when to use them can help you stay competitive and profitable.
Hourly pricing means you charge customers based on the length of the job. You set an hourly rate, track the hours worked, and bill the customer for the total time. This method works well when the job is unpredictable, like fixing a complex pipe issue.
In Flat-rate pricing, you charge a fixed price for the entire job, no matter how long it takes. Instead of billing by the hour, you give the customer a final price upfront. This works best for jobs you have done many times before, like installing a new water heater or unclogging a drain.
When to Use Each Pricing Model
Use hourly pricing when the job has many unknowns. If you are dealing with an old plumbing system or a hidden leak, it’s hard to predict how much work is needed. Charging by the hour offers you get paid for all the time you spend.
Use flat-rate pricing when the work is straightforward. If you know how long the work will take and how much materials will cost, a flat rate makes it easy for you and the customer.
Conclusion
You must constantly look for new work opportunities to run a successful plumbing business. Networking and online bidding platforms like PlansBid make finding work and connecting with contractors in your area easier. Once you secure a project, follow the steps mentioned above to create a strong, competitive bid.
If you’re a plumbing subcontractor looking to grow your business, see how PlansBid can help you find and win more jobs. Contact us today!
