Bidding your first public tender

Plenty of public construction work is small: a washroom renovation at a library, a roof section on a fire hall, a few hundred metres of sidewalk. Cities, school boards and federal agencies have to post it publicly, and a small, well-run contractor can win it. Here's what you usually need. The tender documents always have the final word.

1. An account on the buyer's portal

Most buyers want you registered on their portal (for example their bids&tenders page, CanadaBuys or SEAO) to download the documents. Registering is usually free. Download through the portal, not from a colleague, so you get the addenda: changes the buyer issues before closing that you must acknowledge in your bid.

2. Insurance

Expect to show commercial general liability insurance. Smaller municipal jobs often ask for $2 million per occurrence; bigger or riskier work asks for $5 million or more. You usually only need the certificate if you win, but check the amount before you price the job.

3. Workers' compensation clearance

Buyers ask for a clearance certificate from the workers' compensation board in the province where the work is: WSIB in Ontario, WorkSafeBC, WCB in most other provinces, CNESST in Quebec. If you're registered and paid up, it's free to download.

4. Bonding, only on some jobs

A bid bond or bid deposit (often 10% of your price) shows you'll sign the contract if you win. A performance bond and labour and material bond (often 50% each) protect the buyer while the work is done. Bonds come from a surety company through an insurance broker, who will look at your financial statements and track record. Many small jobs, quotations and repair work don't ask for bonds at all. BidBoard tags notices that mention bonding or bid security so you can spot them.

5. Prequalification and source lists

A prequalification (RFPQ, RFSQ) is a round where firms show their experience first; only those that qualify can bid later. A source list or standing offer is a list of contractors the buyer calls for small jobs over a year or more. Getting on a list is often the easiest way into public work for a small firm, because each job is small and there's less competition. BidBoard tags these too.

6. Read the notice for the rules that sink bids

• The closing time is exact. A bid one minute late is rejected.
• Acknowledge every addendum on the bid form.
• Mandatory site meetings are mandatory. Missing one usually disqualifies you.
• Fill in every line of the price form, even if the price is zero.

7. Start small, or start as a sub

If you're not ready to bid as the prime contractor, price your trade to the general contractors bidding a job. Public tenders for renovations and new buildings almost always need electrical, mechanical, roofing, drywall, flooring and finishing subs.

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This is general information, not legal or insurance advice. Requirements vary by buyer and province.