Bid Price Calculator

Frequently Asked Questions

How to calculate bid price with GST?

Bid price = (Cost + Markup) + GST. First add your markup to the base cost, then apply the applicable GST slab (0%, 5%, 12%, 18%, or 28%).

What GST slab applies to construction tenders?

Construction and works contract services attract 12% GST in India.

What is CGST and SGST?

For intra-state supplies, GST is split as CGST (Central) and SGST (State)—each half of the total rate. For inter-state, IGST applies.

When to use IGST vs CGST+SGST?

Use CGST+SGST when supplier and buyer are in the same state. Use IGST when they are in different states.

How much markup should I add to tender bids?

Typical markup ranges from 10–25% depending on sector. Construction often 15–20%, services 15–25%.

What is TDS deduction in tenders?

Under Section 194C, 2% TDS is deducted from contract payments. Under 194J, 1% applies to professional fees.

How to quote for works contract?

Works contracts typically attract 12% or 18% GST. Calculate cost + markup, apply GST. Consider composite supply rules.

What is reverse charge mechanism?

Under RCM, the recipient (government) may pay GST instead of the supplier. Check tender terms.

How to calculate profit margin in tenders?

Profit margin = (Bid Price - Total Cost) / Bid Price × 100. Include all direct costs and overhead in your cost base.

Should GST be included in bid price?

Yes. Government tenders typically require GST-inclusive rates. Your quoted bid price should include GST.

What factors affect mark-up?

Key factors: competition level, project size/type/duration, location, season, hazard, owner reputation, time for bid prep, labour and material availability, subcontracting, insurance, supervision, construction method, estimate uncertainty, economic conditions, and your risk attitude. See our markup factors checklist.

How do Indian contractors estimate cost?

Surveys show 82% use first-principle estimation (material + labour + plant from bottom up); 18% refer to schedule of rates. 55% use statistical tools for cost and win-probability. 68% apply correction factors for uncertainty; 18% adjust markup instead.

Should I use markup on cost or on bid price?

Markup on cost: Bid = Cost × (1 + M%). Use when profit is expressed as % of your cost. Off-top: Bid = Cost ÷ (1 − M%). Use when profit is expressed as % of bid price. Our bid price calculator supports both—switch with the "Switch" button.

How do contractors distribute mark-up across items?

Indian surveys: 43% distribute evenly across all items, 5% front-load (higher in early items), 33% use uneven distribution, 19% have no fixed policy. Choose based on cash flow and tender format.