🏗️ The Difference Between Public and Private Bids
🧱 Introduction
In the construction world, not all bidding opportunities are the same.
The way you prepare, submit, and win a public bid (for government projects) is entirely different from a private bid (for developers or private owners).
At Nail & Hammer Construction Corp, we participate in both — and understanding these differences is essential for success, compliance, and profitability.
Here’s a breakdown of how public and private bids differ — and how to position your company for the best results.
🏛️ Public Bids: Transparency and Regulation
Public bids — also known as government or public works bids — are funded by taxpayer dollars and must follow strict rules for fairness and transparency.
⚙️ Key Features of Public Bidding:
Open Competition: All qualified contractors can bid.
Formal Procedures: Bids must follow exact instructions, formats, and deadlines.
Lowest Responsible Bidder: Awards are often based on price, but bidders must also meet licensing, bonding, and experience requirements.
Legal Oversight: Governed by public contracting laws (e.g., California Public Contract Code, Federal Acquisition Regulations).
Public bids are designed to ensure fairness and prevent favoritism — meaning every submission is public record once bids are opened.
💡 Pro Tip: Public projects often require prequalification, including financial statements, safety records, and prior project history before you can even submit a bid.
🏢 Private Bids: Flexibility and Relationships
Private bids are issued by developers, corporations, or property owners, and their process is far more flexible.
🔹 Key Features of Private Bidding:
Invitation-Only: Often limited to pre-selected contractors or trusted partners.
Negotiable Terms: Pricing, timelines, and scopes can be discussed before award.
Value-Based Awards: Decision may weigh design ideas, timelines, or reputation more than price.
Confidential: Bid amounts are not made public.
Private bids allow greater creativity and collaboration — but they also rely heavily on relationships, referrals, and reputation.
At Nail & Hammer, our private bid clients value transparency, craftsmanship, and communication, not just numbers on paper.
📑 Required Documentation for Public Bid Packages
Public bid submissions require detailed documentation to prove qualifications and compliance.
🧾 Common Public Bid Requirements:
Bid Proposal Form – The official form provided by the agency.
Bid Bond – Typically 5–10% of the bid value, guaranteeing contract acceptance.
Non-Collusion Declaration – Confirms independent pricing and ethical conduct.
Subcontractor List – All major trades must be declared at bid time.
License & Registration Proof – Active CSLB license, DIR registration, and bonding capacity.
Statement of Experience – Demonstrating relevant past projects.
Addenda Acknowledgment – Confirmation of all bid addenda received.
💡 Pro Tip: Even a small omission — like a missing signature or unchecked box — can result in your bid being declared non-responsive and automatically disqualified.
💬 Private Bid Submissions
Private clients may request fewer documents, but professionalism still counts.
Typical Private Bid Package Includes:
Detailed scope of work and cost breakdown
Timeline and project schedule
Qualifications and references
Insurance and bonding certificates (if required)
Value engineering options (showing cost-saving solutions)
Private bids reward clarity, creativity, and communication — a chance to stand out beyond just numbers.
💰 Why Bid Accuracy Determines Success
Whether public or private, bid accuracy can make or break your company’s reputation.
🚧 Common Bidding Pitfalls:
Underestimating labor or material costs
Ignoring schedule impacts and permit delays
Misreading specifications or addenda
Leaving out required trade scopes
Forgetting taxes, overhead, or escalation
In public bids, errors can’t be fixed once submitted — prices are final. In private bids, mistakes damage credibility and lead to cost overruns.
At Nail & Hammer, our estimating process includes line-by-line takeoffs, vendor verification, and field input from our superintendents — ensuring realistic, profitable, and competitive bids.
🧰 Nail & Hammer’s Advantage
As a Los Angeles-based general contractor, we understand both sides of the bidding spectrum:
Public Projects: Compliance, certified payroll, and bonding.
Private Projects: Design flexibility, negotiation, and client relationships.
Our approach emphasizes accuracy, transparency, and value engineering — giving clients the best project results while keeping bids competitive and compliant.
✅ Conclusion
Public and private bids share one goal — securing the best team for the job — but they operate under very different rules.
By mastering submission requirements, maintaining accurate documentation, and focusing on precision, contractors can thrive in both markets.
At Nail & Hammer Construction Corp, we bring experience, compliance expertise, and a reputation for reliability to every bid — public or private.
📞 Call 424-800-3704 today to learn how our estimating and bidding process ensures accuracy and success from proposal to project completion.
