Bidding on construction projects is a necessary but sometimes tedious and labor-intensive part of being a successful builder. Creating and submitting successful bids takes careful planning, a thorough understanding of the project being offered, and a comprehensive knowledge of what your company can accomplish.
Here are some of the pitfalls to avoid when bidding on a construction project.
- Imprecise calculations: Successfully bidding on a construction project requires accurate figures and realistic accounting of costs, expenses and profits. Rule-of-thumb estimates may provide a good starting point, but the formal bid itself needs to contain detailed numbers and realistic financials. In most cases, it’s a good idea to use sophisticated financial software or bidding programs to handle the complex calculations. These programs will let you make changes and should automatically recalculate the bid. Be careful if you do make these types of changes; one small difference in a crucial area could throw off the numbers for the whole bid.
- Inconsistent standards: Whether you’re doing all of your estimating and bidding in-house or you’re hiring other companies and estimators to help, you need to develop a consistent set of standards for developing and submitting bids. Multiple factors need to be taken into consideration, from the most basic services provided to specialized labor or equipment needed for the job. Bidding standards should also be formulated to allow close adherence to the requirements of the contract. This ensures that your bid completely meets the customer’s needs while ensuring you have the resources to do the job properly.
- Impatience in bidding: If you’re too impatient when approaching bidding on a construction project, you could easily end up bidding too low or unnecessarily slashing your profits on the job. Give the estimating and bidding process the time it needs while also meeting all required deadlines for bid submission.
Construction Monitor helps construction industry managers, business owners and related professionals with the latest information on building permits, housing starts and industry trends. Contact us today for more information on bidding on a construction project and how to make your bids successful more often.
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