What is the difference between a hard bid and a soft bid?

The distinction between a hard bid and a soft bid primarily lies in their pricing structures and the approach to estimating project costs. A hard bid represents a fixed price proposal where the contractor provides a specific, detailed price for completing a project based on the designed specifications. This type of bid is generally binding, meaning that the contractor commits to delivering the project at the proposed price, adhering to the terms laid out in the bid.

In contrast, a soft bid involves providing approximate pricing, often used in the initial stages of project discussions to gauge a client's interest without the obligation of a finalized offer. This allows for more flexibility and can help clients understand the range of potential costs before they commit to a project. Soft bids may not include the detailed breakdown that hard bids do, making them less formal and more of a preliminary discussion tool.

Understanding this distinction is crucial for professionals in construction cost estimation and bid package management, as it affects how contractors and clients negotiate, strategize and plan for projects.