Construction Business: Bidding Badly

construction bidding

You can bid badly and win construction business that is bad for business. The construction business can be more a science than a crapshoot if you use technology tools.

Here are some tips for bidding badly:

  • Be ignorant about your equipment – Don’t keep records of maintenance; if you’ve got construction business machinery that’s due to fail, you’ll forget to pad the bid with rental equipment costs. Forget fuel and transporting your equipment to the project site expenses.
  • Bid fast – Put your bid together quickly without double-checking for mistakes.
  • Don’t pay attention to data – There are construction business software programs that factor-in employee turnover, injuries, and days off work but don’t bother with those numbers. Assume there will be no overtime.
  • Don’t seek clarifications before bidding – Making assumptions usually leads to disaster but you don’t want to look dumb. There’s likely a cut-off date for questions but don’t pay attention to it.
  • Don’t visit the project site – You’ll be unaware of conditions that affect the project, like accessibility and location.
  • Forget risks – Every project has risks, but don’t analyze the probability and potential for profit loss.
  • Make math errors – You’ve made math mistakes in the past but don’t ask someone to double-check the numbers this time. Avoid using software that does the math for you.
  • Make subcontractor assumptions – Assume your subcontractors can work for a certain price and are able to deliver what you want on-time and under-budget.
  • Miscalculate – Under- or over-estimate construction costs and the quantity of materials you need. Using square feet when you should have used square yards can definitely skew profits.
  • Never request competitive subcontractor bids – You’ve been working with your buddy’s construction business for 10 years.
  • Skip the pre-bid meeting – You’ll miss the opportunity to fully understand the job requirements. Someone else may ask questions and get the answers you needed before you won the bid.
  • Underestimate materials – Even though the material costs and supplies change almost weekly, lock yourself into costs that may be out-of-date.

Profitable bidding begins with you (And, yes, you need the right software program). Construction Monitor has the software data you need to grow your construction business.

Use it. Contact or email us to learn more.

Commercial Spending, Infrastructure Boosts Engineering and Construction Industry

construction industry

In 2020, while many businesses floundered, Dollar General’s sales increased by 16.3%, and operating profits grew to $3.6 billion. Dollar General announced it will add 1,050 stores in 2021, with plans to double the size of its current 17,000 stores. The two designs feature 8,500 and 9,500 square feet. In 2021, about 700 stores featuring the larger design will sell produce and meat. Self-checkout stations will also be included.

Dunkin’ Donuts opened its thousandth “Next Generation” restaurant in March 2021. The store’s design meets DD Green Achievement status for energy savings by using sustainable materials. Efficiency elements include LED lighting, low-flow faucets, and energy-efficient equipment.

And Shoe Carnival plans massive renovations for 2021.

“An uptick in public and commercial spending” could make 2021 a profitable year for the construction industry, says Deloitte. Retail expansions and development will feature prominently, but another factor influencing construction industry developments is digital investment.

Construction Industry To See $3-4 Trillion Infrastructure Proposal

President Biden was scheduled to release details of a huge infrastructure proposal on March 31, 2021. The proposal should include “significant investments to repair roads, bridges and railways, as well as other key elements of an aging and, in some places, dilapidated US core infrastructure system,” said CNN.

Digital Data and Your Construction Industry Business

Our software statistics were some companies’ first experience with the construction digital transformation process. David Mineer

National construction industry news impacts every one of us. Just as some companies are growing, expanding space and operations, some engineering and construction firms are thriving in their local markets. We believe those companies invest in digital information to develop marketing leads and better-manage projects.

We learned from 2008. We learned from 2020. If you aren’t sure how Construction Monitor’s presorted building permits and construction industry data can benefit your company, please ask us. That’s how you learn.

5 Habits of Effective Construction Business Teams

construction business teams

Do you know someone that attributes failure to “bad luck?” Have you also noticed those types of people rarely have “good luck?” Effective construction business teams don’t depend on luck. They plan for success and it usually happens.

Here’s how:

1. Automate To Save Time

You hear so much about “communication” being the most effective management tool. But project managers spend 80% of their time communicating.

The problem is DIY (do-it-yourself) face-to-face communications vs. automated communications. DIY communications involve meetings to discuss one topic, but every team member has a project-related issue or question that is important. So you deal with seven critical but off-topic issues. This extends your 30-minute meeting to two hours.

Software automation also saves time trying to track people down for signatures and approvals.

2. Create Accountability

“No excuses” should be the construction business team’s mantra. Ultimately, the project manager is accountable for the project. But every project team should identify a go-to for:

  • Cash flow/profits
  • Change order management
  • Customer care
  • Project costs vs. budget
  • Project status
  • Subcontractors

3. Employ Proactive Project Management

If you’re unsure you’re a proactive construction business project manager, ask yourself these questions:

  • Am I usually surprised by change orders and RFIs?
  • Are most days’ goals usually trashed by 10:00 a.m.?
  • Are my projects usually over-budget? Late?
  • Do I hit contingency funds early and often?
  • Do I spend most of my time putting out fires?
  • Do my project reports feature last month’s data?

“Yes” answers indicate you’re functioning in reactive, not proactive, mode.

4. Follow the DMAIC Approach

Seek continuous improvement on every project:

  • Define
  • Measure
  • Analyze
  • Improve
  • Control

5. Use Technology

Real-time project status is not an option. It’s a necessity. Cost-management software will track and control risks as soon as they are known. When you share this construction business information, project stakeholders can make faster, better-informed decisions.

Top general contractors deliver world-class facilities by hiring superior talent and improving productivity which in turn enhance construction productivity and competitive advantage.IndustryDive*

Building Better Construction Businesses Since 1989

Construction Monitor was one of the first technology-driven companies in the construction business. We take building permit information and customized it for project managers and construction company marketing developers.

Learn how to use data analytics for historic perspectives and business-building. We can customize your information, your way.

Contact us today.

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*Construction Monitor does not recommend nor endorse any technology company products (except ours). References are for informational use only.