Do you want to win more Construction Bids this year?

We bet you do. Who wouldn’t want more business? Whether you’re aiming to grow your brand or improve your estimating and bidding skills, we all want to succeed and do our best. 

It doesn’t matter if you’re a large construction company, a small business, or a solo tradesperson; anyone can bid smarter by following a few easy steps. We’ve gathered them for you. So, what does it take to win more construction bids? Take a look at the steps below.

Find Quality Construction Leads

Don’t bid on every opportunity that comes your way or wait for project leads to find you. You need to focus on finding the right quality leads. Here’s how:

Start by identifying the owners and general contractors you want to work with. Promote your business by showcasing your experience and expertise in your trade. Let them know the types of projects you want to bid on and the skills you bring. Building these relationships is essential; respect and trust can lead to more invitations to bid (ITBs).

Reach out to your network to learn about new and upcoming projects. If you’re new to networking or don’t have a network yet, we have some tips for you. Your subcontractors and suppliers can also be great sources for finding upcoming projects. You can join organizations like the Association of General Contractors or groups specific to your trade or location. A quick Google search can help you find one.

Find the Right Projects to Bid

Now that you know how to find quality projects, it’s important to choose the right ones for your business. Winning a bid for a project your business can’t handle is just as bad as losing the bid.

• It’s never too late to drop a bid, even if you’ve started working on it.
• If you realize the job won’t be profitable, walking away and finding another project is better.
• Balancing how many jobs you bid on and win is important.
• You don’t want to take on too much work and miss deadlines or too little and not make enough money.
• Choosing the right projects to bid on helps you increase profits.
• That’s why having a strong bid/no-bid decision process is essential.

Review Profitability 

Once you know which projects to target, it’s time to consider how much profit they can bring. Start by tracking the actual costs for materials, labor, and equipment. Then, compare your actual costs to your estimates and ask these questions:

• Was my contingency budget sufficient?
• Did I correctly factor in my profit and overhead mark-up?
• Were my estimates for labor and materials accurate?
• Did I include all job costs in my estimate, like bonding, supplies, and equipment?

If your profit margins aren’t what you expected, it could be because your estimates were too low or there were productivity issues on-site that increased costs. No matter the cause, it’s important to address these issues to improve your profit margins. By combining data from your bid-hit ratios and profit margin analysis, you can better target the projects that you’re likely to win and make the most money on.

Conduct a Bid/No-Bid Review 

Before investing time in a bid proposal, do a thorough bid/no-bid review for each opportunity. Here’s how:

• Get all the project documents, plans, and specifications. Read them carefully.
• Run calculations to check if you can make a decent profit.
• Ensure you have the workforce and equipment to complete the job on time.
• Confirm you can handle the project’s size and scope.
• Look for any “red flags” that might cause problems if you win the project.

Consider these additional factors in your review:

• Project location
• Duration of the project
• Other companies you’ll be competing against
• The client or project owner

Doing a bid/no-bid review and deciding which of these factors are most important to your company will help you choose the best opportunities.

Identify and Manage Risks 

Finding and managing risks is often overlooked when preparing a bid. If you spot potential risks, you need to address each one carefully. Think about how likely each risk is and how it could impact the project. It might be easier to handle if a risk is unlikely or has a minor impact. However, a risk that could really affect the job could hurt your profits.

You’ll be a better bidder if you can identify the risks connected to a project. It also helps you be better prepared if something goes wrong. Starting this process early lets you avoid projects that won’t be profitable. It helps you make more accurate bids and contingency budgets. This will make project management run smoother and save you time, money, and resources as the work progresses.

Don’t Assume, Ask for Clarifications

Besides your equipment and workers, make sure your bid includes everything the project owner or architect might require. These things can include:

• Specific bonds
• Using certain brands of materials
• Participation goals for minority business enterprises (MBEs)

Go through all the plans and specs to check for any specific requirements. If you’re unsure about anything, contact the architect, owner, or their representative right away. There are usually deadlines for asking questions, and missing these deadlines can delay any changes or updates to the plans. Making guesses and not getting clear answers won’t help you win a bid. If you’ve asked questions but aren’t getting useful responses, it might be time to rethink whether you should keep bidding. Most bids offer a pre-bid meeting and a chance to visit the job site, and sometimes these are required. This is important because each site is different, and not knowing what to expect can lead to unexpected problems and extra costs during construction. During a site visit, make sure to:

• Take measurements.
• Check the land’s shape and, if needed, take soil samples.
• Look at how to access the site and the traffic around it.
• See how much space is available for equipment and materials.
• Find out if you need any environmental protections for construction.

If you skip the pre-bid meeting, you might miss the best chance to get details about the project and see the site. If attending the meeting is required and you miss it, you won’t be able to submit a bid.

Ensure Accurate Takeoffs & Measurements 

Your takeoffs are the basis for your estimates. If they’re inaccurate or incomplete, your estimates will be off. Accurate takeoffs help you determine the right amount of materials, hire enough workers, and get the right equipment. Missing items or wrong measurements can lead to overestimating and losing the bid or underestimating and winning a project that doesn’t pay well. Using takeoff software can help ensure accuracy and save time compared to manual takeoffs. Whether using software or doing it by hand, keep these points in mind:

• Use the correct units of measurement and scale.
• Follow any specific dimensions mentioned in the plans.
• Review the plans and specs to ensure your measurements and takeoffs are accurate.

Include All Material and Equipment Costs

Consider These Points for Materials and Equipment Costs:

• Material and supply costs can vary by location. Ask local suppliers for current prices if you’re unfamiliar with the area or materials.
• Ensure you have all necessary equipment, and consider renting or buying if needed.
• Verify that your owned equipment is available and not in use elsewhere.
• Check that equipment is in working order and doesn’t need repairs that could cause delays.
• Include fuel costs for equipment and transportation to the job site.

Evaluate Subcontractors and Their Pricing

To simplify subcontractor pricing:

• Get bids from at least 3 companies for each trade to ensure competitive pricing.
• Clearly define the scope of work for each subcontractor.
• Review each bid carefully to confirm the prices are accurate.
• Consider a prequalification process to evaluate subcontractors based on their past work.

Tips for Preparing a Competitive Bid Proposal

Preparing a competitive bid takes time. Rushing can lead to mistakes.

• Read and understand the plans and scope of work.
• Gather and review subcontractor bids carefully.
• Double-check all measurements and costs, and consider having an estimator review your work.
• Ensure you have all required documents and paperwork; missing any can cost you the bid.
• Use a checklist to track required paperwork.
• Accurate estimates are crucial; underestimating can significantly impact your profit.

No matter your company size or location, follow these steps to win more construction bids in 2024. Good luck, and see you on the job site!