The bidding process is challenging for many contractors and subcontractors. Some building companies still have difficulties when it comes to bid offers while another category of business representatives in the construction sector consider the preparation of bid invites also far from a simple stage. Both parties should know the peculiarities of the bidding process before entering this phase in the context of pre-construction arrangements.
For example, general contractors should pick sides with the priorities they will be ruled by when it comes to the best-matching candidate selection. At the same time, bid offers presented by subcontractors should be risk-free for potential performers of all the construction works. Overbidding together with underbidding can be excluded with the help of using software for bidding estimating.
Estimating is a critical aspect that has a direct impact on the bid offer you are going to present. Most project managers pay attention to the way all the candidates estimate everything required for successful work and the best price-quality ratio. The main mistake of many subcontractors is poor estimating. To solve this problem, digitize this pre-bid stage through construction pricing software and other digital tools for automation costing and budget planning.
Speaking about the most common mistakes in the bid process, there are four of them including inaccurate estimating mentioned below. Let’s take a closer look at all the challenges and solutions to improve your performance in the construction market.
4 Most Common Mistakes in the Construction Bidding Process
Start with helpful insights that you should know before contracting. For example, you need to know what type of construction contract you are going to sign with the general contractor. There are three variants of agreements to take into consideration. Some of them have fixed prices that require accurate costing from the very beginning. Cost-plus contracts are based on the contractors’ spending that is covered by the client together with the percentage of profits from the project. And the third type of contract is time & material agreements with hourly rates and the budget item for supply costs.
Note that your bid should meet the main concepts of construction contracting chosen for this or that tender. This way you can make an accent on your accurate estimating that shows your balanced planning and skills of task management through perfect timing.
Mistake 1: Missed Details of the Bidding Package
You should pay attention to all the requirements in the bidding package of your potential employer. For example, you can miss demands on the project deadlines. This way it will be difficult to schedule all the processes risk-free for the quality of on-site work. No rush should take place. Take a closer look at the construction documents and understand all the wishes and expectations of the customer.
Mistake 2: Skill Set Is Not Enough for the Project You Bid
Your bid offer can be perfect for the project. But your skill set might not meet all the specifications and requirements of the employer you are going to work with. Be sure that your experience, area of competence, and knowledge base are enough to bid the order and pretend to cooperate with the general contractor of your interest. Feel free to ask questions and unveil details of the project at the very beginning.
Mistake 3: Sending Bid Proposals Without Pre-Bid Meetings on the Site
You have a right to visit the site where all the building works are going to take place. Sometimes subcontractors can discover some hidden pitfalls that ruin their costing background. For example, the site can be located too far, so extra transportation costs are required. Or you can find some other issues like:
- Lack of specific tools, equipment, machinery;
- Insufficient landscape or too small territory for construction;
- Weather extremes can harm some materials, so extra storage costs are necessary.
- Only the pre-bid meeting can save you from unpleasant surprises on the site. Have a job walk with the general contractor to show your high-level responsibility.
Mistake 4: Inaccurate Estimating and Costing
To sum up, your successful bidding process depends on accurate estimates and costing. Your bid offer will be absolutely competitive if you have a win-win strategy with real costs and profit margins in the reports to show to the general contractor. As can be seen, the best way to improve your estimating and costing is to use special-purpose software to do away with complicated analytics and budget planning.
