How to Create More Successful Construction Bids
Bidding for construction jobs is becoming increasingly competitive. Just since January of 2021, we have already seen a 36% increase in bidding activity, often spurring a war to scrape in at the lowest possible price.
But a greater number of bids doesn’t mean that they are all high-quality bids. Many contractors approach their construction bids by prioritizing lowest cost and bidding on any project that comes along, but this isn’t always a recipe for success. If you desire for your contracting business to stand the test of time, the challenges and complexities of construction bidding require a much more strategic approach.
As global construction demands rise to $94 trillion, it’s true that contracting companies must remain competitive. But while winning construction bids is important, your primary goal should be choosing projects that suit your team’s abilities and show great potential for profitability.
Remember, bidding low isn’t always synonymous with bidding competitively, and a higher bidding volume could only dwindle away your time and resources. Instead, read on to learn more about how you can create more successful bids by choosing better projects, assessing risks, and accurately estimating your projected cash flow.
Choose the Right Projects
When you’re in the process of deciding which construction jobs are best for you, don’t rush to bid on every project available. Take your time creating thorough and detailed proposals for the projects that your team is best equipped to complete. When you reduce the number of proposals that you submit, it enables you to choose higher-quality projects and present better bids.
Decide what you’re best at, and select jobs that align with your niche. By excelling at particular projects, you form relationships with clients that will provide you with a steady stream of repeat business for long-term success.
Furthermore, if you don’t have the skillset to complete a job adequately, it’s in your best interest to forgo placing a bid. Set yourself up for success by leaning into your own team’s talents and specializations.
Identify Potential Roadblocks
As you get started on your next project, make sure that you understand the prospect’s organizational structure. Get in touch with the primary decision-makers and take time to earn their trust. If there’s an aspect of the project that you’re unsure how to approach, discuss your concerns in-depth. You will want to do this early on because it can be costly and time-consuming to fix mistakes later on in the project. Plus, your honesty and eye for detail will lend you credibility with the client.
Know Your Limitations
A critical element of creating successful construction bids is knowing your limitations. Much like you shouldn’t fight for projects you can’t adequately complete, don’t pad your bid with bells and whistles that you can’t deliver.
Also avoid overpromising in regard to budget, timeline, or other metrics. While it may be tempting to bid on a promising project, winning the bid will mean nothing if you cannot adequately fulfill the job as specified. As such, avoid bidding on projects with unrealistic demands or completion dates. Even if it’s not the fault of your crew, any project that appears to drag or go astray may tarnish your reputation and make it more difficult for you to acquire construction bids in the future.
Visit the Site
Of course, to know for sure whether a construction project is feasible as proposed, you need to develop a clear picture of the variables. The truth is, theoretical knowledge does not always suffice. Visiting the site beforehand allows you to become familiar with the conditions and potential challenges. This will enable you to develop a detailed plan, put together an accurate idea of resource allocation, and evaluate the required work scope. With this information, you can create a more accurate bid price.
Assess the Cost of Development
When you submit a bid, you’ll need to do more than arrive with a projection for a lump sum. Before you begin your project, your bid must carefully calculate and account for the potential costs involved. Fortunately, tools like Pre-Construct by BlackVector can streamline this process, empowering you to easily build work packages, track estimates, and compare bids.
Quantifying your projected costs and profit with adequate data will give your bids the advantage of credibility and professionalism. And for each project you win, Pre-Construct shares detailed, cloud-based budget data that will keep your bid on track when you move into the building stage.
Now you have the principles to craft more successful construction bids, but you will need the tools to put it all together. Enter BlackVector, a software solution that synthesizes project data to reduce risk from start to finish. With integrating modules built by construction professionals for construction professionals, BlackVector is ideal for both Specialty and General Contractors.
No more time wasted on repetitive data entry, no more data lost between software platforms that won’t work together, and no more important reports that are inaccessible from the field. From estimating to execution, with BlackVector’s cloud-based project management tools, you can have accurate, continuous, and up-to-date project information always at your fingertips.
Are you ready to revolutionize your contracting business? Contact BlackVector today, and let our team streamline your processes for projects that are smoother, faster, and more profitable.
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