How to make a Go/No-Go bid decision in construction
A Go/No-Go, or bid/no-bid, decision asks whether a solicitation is worth estimating hours before you spend them. Score every package against the same weighted checklist: fit, contract risk, bonding and insurance, capacity and competitive position. Record the score, the cited findings and who decided, for the bids you chase and the ones you walk.
What goes on a bid/no-bid checklist?
Nine criteria cover most general contractor and subcontractor decisions. The weights are an example for a mid-size Texas commercial GC; set your own and keep them fixed for a quarter.
| Criterion | Weight | Score 0 to 5 | Owner of the input |
|---|---|---|---|
| Work type fit | 15 | 0 never done it; 5 several recent projects of this type | Precon lead |
| Geography | 10 | 0 outside service area; 5 home market | Operations |
| Contract value vs bonding capacity | 10 | 0 above capacity; 5 in the sweet spot | Finance |
| Liquidated damages | 15 | 0 uncapped or stacked; 5 capped or none | Precon lead |
| Indemnity and payment terms | 10 | 0 broad form or pay-if-paid; 5 limited form, timing-only payment | Precon lead |
| Bonds and insurance | 10 | 0 cannot meet; 5 standard and within program | Finance |
| Schedule and team capacity | 10 | 0 no PM or superintendent free; 5 right team available | Operations |
| Owner history | 10 | 0 slow pay or claims history; 5 strong repeat owner | Precon lead |
| Competitive position | 10 | 0 open bid, many strong bidders; 5 short list | Precon lead |
How do you score a bid/no-bid decision?
Multiply each 0 to 5 score by its weight, sum, and divide by 5 for a score out of 100. Set a threshold in advance, for example 70, and require a written reason to bid below it. Review the threshold against your win and margin results each quarter.
Which contract terms should change the call?
- Liquidated damages. The rate sits in the agreement (AIA A101-2017 4.5) and the cap, if any, usually in the supplementary conditions. Also check whether AIA A201-2017 8.3.1 time extensions were narrowed, which keeps LDs running through delays you did not cause. See the LD guide.
- Indemnity. A201 3.18 is limited form; edits toward broad form shift the owner's own negligence to you. On Texas projects, Insurance Code Chapter 151 voids much of that, but it still costs money to fight.
- Payment. Retainage (retention) terms, and for subs, pay-if-paid.
- Public compliance. Wage rates, bonds and participation goals change price and responsiveness. See the compliance guide.
Who should own the Go/No-Go decision?
A small standing group: the precon lead, the operations lead who would staff the job, and finance above a dollar threshold you set. The estimator presents the package; the group makes the call.
What does a defensible No-Go record contain?
- Package, owner and bid date.
- Score per criterion against the published rubric.
- The findings that drove the score, each cited to section and page.
- Decision owner and date.
- A revisit trigger, for example "revisit if an addendum caps LDs".
Clara, BAU AI's bids and RFPs agent, reads the whole package and drafts a Go/No-Go memo with reasons, each cited to its page, against your criteria. Your team makes the call. Clara at work includes a Go/No-Go memo.
Frequently asked questions
What is a bid/no-bid decision?
The decision whether to spend estimating time on a solicitation. Construction teams also call it Go/No-Go. It is made after a first read of the package and before detailed pricing.
Should every bid get a bid/no-bid score?
Yes, including obvious Go decisions. Consistent scores are the only way to learn later which criteria predicted wins and margin.
How long should a bid/no-bid review take?
Keep the meeting short, around 20 to 30 minutes for a routine package, by having the package read and the findings cited before the group meets.
Can AI make the Go/No-Go call?
No. AI can read the package, apply your criteria and draft a memo with cited reasons. The precon lead and the decision group own the call.