Bidding on construction projects involves more than just playing around with numbers. Without the right construction bidding software, this might turn out to be a frustrating ordeal. While you won’t prefer quitting the race, you would end up draining your energy, resources, and time.
Successful construction bidding calls for a lot of preparation. You should have a proper understanding of the costs involved in equipment, materials, and labor. An apparently negligible blunder might prove to be the difference between winning and missing out on a project.
The experts at GoBridgit have come up with this guide, briefing on how to bid construction jobs the right way.
Why Do Successful Construction Firms Use Bidding Software?
A dedicated, intelligent, and customized bid management software can significantly improve your bid-to-win ratio. Successful construction firms use advanced bidding tools to win more contracts. After all, you would perceive every bid as a viable stepping stone to your company’s growth. Losing a bid implies a potential loss of business. Using specialized bidding software, construction firms can streamline the process.
Bid managers working with construction firms can organize the commercial elements using the software. This helps them secure tenders successfully, as these tools generate efficiently processed and accurate bids. This justifies why the leading construction firms prioritize bid management tools.
Mistakes To Avoid While Bidding For Construction Projects
Here are some mistakes you must avoid while bidding on your next construction project:
1. Bidding On Every Construction Project
Firstly, make sure that you refrain from bidding on the wrong projects. Trying to get into every project would be a waste of time and resources. Instead, you need to be judicious about where you channel your efforts.
Eliminate the projects that lack profitability. Besides, it would be logical to skip the ones that you won’t be able to tackle, considering resource constraints. This way, you can deploy quality time and resources while preparing bids for the right projects. This would ensure that you get suitable construction projects to work on.
2. Skipping Site Visit
Preparing your bid without visiting the site makes it impractical and unrealistic. Make sure to schedule a walk-through when you are in talks with the respective authorities. Although many firms use Google Earth, it doesn’t provide a transparent picture that you would gain through a first-hand visit.
On visiting the construction site, you can clearly see its size and scope. You can phase the project accordingly and plan the placement of cranes and other equipment. In some places, you might need permits to operate around the site.
Moreover, it’s crucial to have a clear understanding of the regulations of the existing structure. Preparing a bid without considering these aspects would make it unrealistic.
3. Incomplete Bid Forms
Incomplete bid forms happen to be a primary reason forbidding rejections. You need to be meticulous while carrying out the paperwork and documentation. Once you start using bid management software, the tool helps you detect possible mistakes. You need to scrutinize the checklist and not miss out on any information.
While filling up the forms, make sure to put the dates and other information related to deadlines accurately. Deploying intelligent software for construction bidding significantly helps in mitigating these flaws.
4. Making Mathematical Blunders
The last thing you would expect to crop up on your bid is a mathematical blunder. Errors in calculating the job’s overall cost might prove to be devastating. Moreover, a minor mismatch in price might reflect conspicuously in the overall bill. This explains why global construction companies use bidding software or calculators to ensure accuracy.
Although you won’t have any arithmetic errors when you use these tools, take care of inserting the correct figures in the first place. Ensure that you double-check your inputs for accuracy.
5. Wrong Estimation For Equipment
While preparing a bid, make sure to factor in the cost of equipment you would deploy to complete the project. Whether you purchase or rent them, you would bear an additional expense.
In case your firm already owns the equipment, check out whether you would need them at any other construction site. In a nutshell, the necessary equipment should be available for the project under question. Accordingly, you need to make the necessary arrangements, maintenance, and repairs.
If you find some of the equipment not working optimally, you need to rent them at an additional expense. In case you don’t have all your equipment delivering the best performance, project delays would mess up your schedule.
6. Overlooking Overtime Expenses
While working on your bid, you need to factor in associated expenses like overtime. Wage rates largely differ from state to state. If you have construction bottlenecks, delays, or equipment issues, you need to make provision for excess wages.
A dedicated construction bidding software would provide you with the scope to calculate the overtime. Accordingly, you can determine the final wages you need to pay the laborers. Again, overtime wages are calculated differently, as you need to pay more than the average rate to workers. Unless you have a robust tool, it becomes challenging to estimate the real cost.
7. Last-Moment Bids
When it comes to preparing something as serious as a construction project bid, you cannot afford to rush through the calculations. Refrain from submitting these bids on the last day of the tender.
Overlooking crucial aspects might lead to miscalculations. Take enough time to scan through the tentative cost that you are about to pitch. It makes more sense to refrain from pitching a wrong bid than to place it at the last moment.
Given that mistakes in construction bids can prove expensive, make a calculated approach while you expand your business. In case you haven’t got bid management software yet, make sure to purchase one of the powerful tools.
This would save your firm from committing common construction bidding mistakes. A transparent and organized bidding mechanism would give you an edge over your competitors.