What Is a Property Preservation Bid?

A property preservation bid is a formal cost estimate that a preservation vendor submits when the work needed on a property exceeds the standard allowable cost limits. Most property preservation work has pre-approved pricing — a grass cut, a lock change, a standard inspection all have set rates. But when the scope exceeds those limits, the vendor must bid the work and wait for approval before proceeding.

When Bids Are Required

• Large cleanouts exceeding cubic yard limits (typically over 15–20 cubic yards)
• Major repairs — roof work, structural repairs, HVAC replacement
• Mold remediation or environmental hazard abatement
• Full property rehabilitation or make-ready work
• Boarding that exceeds standard allowable amounts
• Any work exceeding the agency or servicer's pre-approved cost thresholds

What a Bid Includes

A property preservation bid typically requires supporting photos showing the condition and scope of work, a detailed line-item cost breakdown (materials, labor, disposal), measurements or quantities (square footage, cubic yards, linear feet), a description of the proposed work scope, and the vendor's timeline for completion. Some servicers require competitive bids — multiple vendor quotes for comparison.

The Bid Approval Process

After the vendor submits a bid, the servicer or their oversight company reviews it against the agency's allowable cost guidelines, checks the supporting photos for accuracy, and either approves, modifies, or denies the bid. Approved bids authorize the vendor to proceed. Modified bids adjust the approved amount. Denied bids mean the work is not authorized — the vendor must not proceed without authorization, or they risk non-payment.