Like the saying "You gotta be in it to win it," many construction firm owners submit many bids for local jobs to be in it.
But to thrive and survive, you need to do more than just be in the bidding process. Your firm must be able to submit bids that have a reasonable chance of approval. And your firm must win often enough to thrive.
There's no foolproof method for developing and submitting winning bids. Still, by following some basic principles, you can improve your chances.
Bidding is an art, not a science. Usually, the bidding process is reserved for the general contractor, but the architect and others might participate.
Although contracts may be awarded to the lowest bidder, the process often involves more than just cost. It also may involve the qualifications of the firm making the bid. Having an excellent reputation for quality and timely work may be just as important, if not more so, than offering the lowest price.
To help develop more successful bids, your firm might consider using some of the many bidding software programs available. Typically this software is used as part of the cost estimation and budgeting process. You also may subscribe to a database of construction costs, updated monthly. Although your firm may choose to maintain its own database to better reflect local pricing.
Materials and labor costs are critical parts of the equation. The software defines the materials and labor hours for a particular project and then calculates the job cost from the database. All you need to do is find a job defined in the database and the software does the "grunt work." This reduces the possibility of leaving out some costs.
The software also lets you compare final job costs to the initial bid and fine tune your final bid by, for example, inserting lower or higher costs for materials and labor.
Construction bid software is relatively inexpensive. The exact price depends on the features. Usually, the programs are designed to work with Excel spreadsheets, although some are stand-alone.
Among the multiple benefits of this software are that it:
Once you have acquired estimating software and become proficient at using it, you'll be better equipped to submit bids. Although the process may vary, partly because of regional differences, there are essentially five important steps.
Bidding can mean the difference between a successful business and going under. By using the latest software and other tools at your disposal, you can position your firm for the optimal opportunities.
Get in touch today and find out how we can help you meet your objectives.