Construction firms make money by bidding on construction projects. However, most of these companies began their careers in the industry by costly mistakes on their part and missing out on multi-million projects. Contractors learn about bidding the hard way—by experience—but it doesn’t need to be that way. This guide will discuss some useful tips on how to bid the right way and win more of these projects.
Inspect the Site
Organise a tour of the construction site to see the needs of the project. If the project is going to require a void former, make sure that you can source that material. From here, you can make a list of the materials you need, how many of them you need, and the time it will take your team to complete the whole project.
Contact Your Suppliers
Now that you have a list of materials needed, contact your supplier so that you can talk about pricing and availability. Come up with the total cost of the materials, but make sure to negotiate with your supplier to give you a special discount if you’re purchasing tons of materials from them. Include transportation in the costing, as well as an allowance for damaged goods and lost materials.
Estimate Labour Costs
Labour costs are composed of wages, benefits, compensation, and insurance for your workers. You might need to mark up this part of the contract because this is where you are going to get your gross profit. However, make sure that your offer will remain at a competitive level because the project owner will prioritise the construction company with the lowest bid.
Look for Subcontractors
If you need to subcontract out some part of the job, do not be wary to do so. Start your bidding process. As the general contractor, you are allowed to subcontract a portion of the project to worthy bidders. However, if the project gets awarded to your construction company, you will be fully responsible for the actions of your subcontractor.
Create a Schedule
One of the things that the project owner will look for is the timing and the delivery of the completed project. When creating a schedule, take into consideration the availability of the materials and workers, weather conditions, delays due to the clients, back orders, and other scheduling difficulties. While you want to finish the project as quickly as possible, your clients should understand that hastening a construction project might compromise its quality and the safety of those who will use it.
Write the Bid
Make your bid proposal as professional as possible by printing it on good paper and binding it like a book. More importantly, be as detailed as possible in your proposal. Clear out any aspect of the proposal that may be hard for the prospective client to understand. In the proposal, include photos of the past project and a list of referrals. You can also provide documents showing that you are financially capable of completing the project and that you and your subcontractors are properly insured. The proposal should also include the estimated completion date.
You should also try to suggest alternative materials for the construction project if the owner has a limited budget. The owner will appreciate the efforts that you have taken in researching possible alternative materials. That’s why it is also advisable to prepare a second bid proposal for a low-cost construction project just in case the project owner gets surprised by the first bid.