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materials – Even though the material costs and supplies change almost weekly, lock yourself into costs that may be out-of-date.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.

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