Accessory Dwelling Units (ADUs) represent one of the fastest-growing segments in residential construction. For a General Contractor, these projects are attractive because they are predictable in scope and have a shorter lifecycle than ground-up custom homes.
However, because ADUs are smaller, the Administrative Overhead per project is higher. Managing 30 subcontractors for a $200k ADU takes nearly as much time as it does for a $1M home. To be profitable in the ADU market, you must have a standardized, high-speed bidding process.
If you are running multiple ADU projects simultaneously, your inbox will quickly become a bottleneck.
ADU projects are highly standardized. Create a “Master ADU Division List” (e.g., Site Prep, Utility Hookups, Shell, MEPs, Finishes). Every project should follow this exact structure, allowing you to compare costs across different ADU builds instantly.
In the ADU space, you tend to work with the same core group of subcontractors. Stop sending individual emails. Use a system that allows you to “Push” an invitation to your preferred ADU subs with one click, ensuring they all receive the plans and the deadline simultaneously.
Do not waste time manually typing sub-bids into a spreadsheet for a small project. The administrative cost of the labor will eat your profit. You need a system that parses the bids the moment they land in your inbox.
The single biggest source of budget overruns in ADU construction is the Utility Connection. Unlike a primary residence where the street connection is often straightforward, ADUs require complex tie-ins to the existing home’s electrical, sewer, and water systems.
Often, a plumber will bid for the ADU’s interior piping but exclude the “trenching and tie-in” to the main line. Similarly, an electrician might bid for the ADU panel but not the upgrade to the main service panel required to handle the extra load. To standardize your bidding, you must create a dedicated “Utility Integration” category in your budget. By separating the ADU’s internal costs from the integration costs, you prevent “hidden” scope gaps that often occur where the two structures meet.
Standardizing your process also requires distinguishing between “Site-Built” and “Modular” (Pre-fab) ADUs.
If your firm does both, your bidding templates must reflect this. A modular ADU budget will have 10 line items, while a site-built ADU will have 30. Using a system like Bid Bench allows you to switch between these templates instantly, ensuring that you aren’t carrying unnecessary categories for pre-fab jobs, while still maintaining the rigor required for site-built projects.
To ensure consistency, every ADU bid should be categorized into these 10 core buckets:
Q: How many bids do I really need for a small ADU? A: Even on small projects, you should aim for 3 bids for major trades (Electrical, Plumbing, Framing). Because ADU scopes are tight, prices can vary wildly based on a sub’s current workload.
Q: Should I use ‘Allowances’ for ADU finishes? A: Use them sparingly. Because ADU clients are often budget-conscious, it’s better to get “Hard Quotes” for flooring and cabinets early. This prevents the end-of-project “bill shock” that can ruin a client relationship.
Q: How do I manage the ‘Owner-Builder’ client? A: Many ADU clients want to “help.” Your bidding system should clearly define which items they are handling. Use Bid Bench to mark those line items as “Owner Supplied” so the financial liability stays on their side of the ledger.
Bid Bench provides the structural framework required to scale an ADU firm.
Turn your ADU bidding into a machine.
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