Whether you’re preparing for a residential renovation or planning a commercial development, understanding the construction bidding process is essential. New York and Florida share many of the same foundational principles when it comes to bidding, but each state has its own legal requirements, licensing rules, and market conditions that shape how contractors prepare and submit proposals.

For clients, knowing what to expect can make the difference between a smooth project launch

The Bidding Landscape: NY vs. FL

While the general flow of bidding is similar nationwide, state laws dictate the “red tape” involved, especially for larger projects.

New York: 

In New York, public and many large-scale commercial projects are heavily influenced by General Municipal Law § 103. This law generally requires that contracts for public work involving an expenditure of more than $35,000 be awarded to the lowest responsible bidder.

• For Clients: This means the focus is often on the bottom line, but the “responsible” tag allows you to vet a contractor’s past performance, insurance, and financial stability.

Florida: 

Florida’s process is governed largely by Florida Statutes Chapter 255. For state-funded projects, any construction projected to cost more than $200,000 must be publicly advertised. Florida also utilizes the Consultants’ Competitive Negotiation Act (CCNA) for specific professional services, ensuring that qualifications—not just price—are part of the conversation.

• For Clients: Florida law emphasizes public notice. If you are a private client, you aren’t bound by these strict advertising rules, but the “sealed bid” culture of the state often influences how local GCs operate.

What the Process Looks Like for Clients

If you are interested in receiving bids, you will typically follow these four phases:

Phase 1: Bid Solicitation

The owner (you) or your architect issues a “Bid Package.” This includes your blueprints, project manual, and a Request for Proposal (RFP).

• Pro Tip: In the private sector, you can choose “Invitation Only” bidding to ensure you only hear from contractors you already trust.

Phase 2: The “Walk-Through”

Contractors will visit the site to identify potential “latent conditions” (hidden issues like bad soil or old wiring). In both NY and FL, site visits are crucial to prevent future Change Orders that can bloat your budget.

Phase 3: Bid Submission & Review

Contractors submit their “sealed bids” by a specific deadline. You will review:

• Base Bid: The cost for the core scope of work.
• Alternates: Costs for optional upgrades (e.g., marble vs. ceramic tile).
• Qualifications: Proof of licensure (especially critical in Florida’s highly regulated trade environment).

Phase 4: Selection and Contract Formation

Once you choose a winner, you move to the contract phase. Common formats include:

• Lump Sum: A fixed price for the whole job.
• Cost-Plus: You pay for actual costs plus a set fee for the contractor.
• GMP (Guaranteed Maximum Price): The contractor covers any costs over a certain limit.

Key Differences: Residential vs. Commercial

Residential: Often less formal. In New York, home improvement contractors must be licensed by the specific county or city (like NYC’s Department of Consumer Affairs). In Florida, residential GCs must be state-certified or registered. Commercial: Highly formal. Expect requirements for Performance and Payment Bonds, which act as insurance policies ensuring the project gets finished even if the contractor goes bankrupt.

 

John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: John@LIConstructionLaw.com or (631) 608-1346.

References:

New York State Senate: General Municipal Law § 103 – Advertising for Bids

The Florida Senate: Florida Statute 255.0525 – Advertising for Competitive Bids

NY.gov Office of General Services: Bidding 101 for New York Projects

Florida Department of Management Services: State Purchasing and Project Thresholds