The bidding process in construction is considered successful if the acquired work converts into revenue for the building company. But all its stages are performed well only if the contractor is attentive to the details and all the time-consuming tasks needed for the project. Remember that the well-thought strategy for your bidding process is the guarantee of increased revenues and 100% satisfaction of your customers.
It goes without saying that improvements in bidding, costing, and estimating are essential for your pre-construction phase. The best way to enhance all these constituents of the initial stage of construction is to implement digital solutions for automation and more accuracy in all aspects (reporting, calculations, financial predictions, etc.). Construction estimating software together with management and communication apps is a real thing for this purpose.
But first, let’s dive into the topic of the bidding process itself. When you understand all the peculiarities, it is easier to pick sides with efficient strategies, the best-matching construction bidding software, and other solutions to take into account for your risk-free performance in the markets.
What Is the Bidding Process in Construction?
It is worth noting that you need to consider all the bidding stages as some kind of pipeline that leads you to a profitable business in the construction sector. This way you will not only generate more profit but increase your clients’ networks and enhance your contractor’s reputation. Everyone wants to work with reliable building companies that provide precise data in the form of:
- Accurate reports;
- Error-free costing information;
- 100% ready permits and other documentation for tendering.
Note that trusted contractors are a desirable goal of most subcontractors who are searching for a perfect employer. To sum up, everything starts with bidding – the process when you acquire a new order and can convert it into real revenues.
Speaking in detail, the bidding process is a blend of various arrangements starting with the bid form (a proposal) and finishing with risk management reporting and other core documentation for construction. This way the potential subcontractors receive bid invites to take part as performers in the building project.
The general contractor and project managers pick sides with the best-matching candidates according to their offers. And the most attractive pricing of works is not the only criterion. Many GCs pay attention to the area of competence, experience, scheduling, and other factors. The main goal is to find subcontractors that meet the criteria of the best value for the project.
Tips for Subcontractors for Better Bidding Performance
Remember that the lowest bid is not about 100% winning. The task of the project manager is to reduce any risks concerning required work. Additionally, you should understand the profitability rate of your low-price bid. Thus, you can offer attractive rates and juicy scheduling for the general contractor but get poor revenues finally.
The bidding process is always about competitiveness and the low cost you might offer is not the top-priority reason to hire you for most reputable companies. Remember that your bid offer can be the final point with no negotiations for the general contractor. So, if you underbid or overbid, be ready either for unprofitable work or declined bids from customers of your interest.
Start with accurate estimating to get the order and increase your revenues. Only error-free estimates bring high-profit margins and pleased clients you are going to cooperate with. Consider delivery methods of your proposals to attract the project manager to your bid.
The design-bid-build model requires incredible modeling, designing, and visualization backgrounds before the bid offer. The design-build delivery method requires great estimates of everything from the very beginning with no room for discussions of your final bid offer.
To summarize, focus on your estimates and be sure that you have a win-win proposal. Additionally, visit the site before bidding, and do not forget to review all the document packages and tech requirements before performing your bid.