Construction Project Bidding

Guide to Construction Project Bidding

Do construction bidding carefully to prevent mistakes from cutting into your profits
By Sue Darnell

Construction bid leads are the proverbial dangling carrot; creating excitement among associates and employees alike. Avoid jumping on construction bid leads too quickly though, before you’ve had time to count the costs.

Determining the costs of materials is crucial in the beginning of construction project bids. All components involved must be considered. Forgetting to figure the cost of hinges and hardware on cabinet jobs, for example, can eat away at your profit after construction bidding. Knowing some basics can help small construction bidding companies.

1. Calculate the cost of labor into construction project bids. Bidding for local construction projects allows you to use sub-contractors with which you’re already familiar. Knowing their rates, reputations and readiness makes bidding for construction projects simpler.

2. Factor in “inflation cost” of materials when bidding a job that won’t be started for 6 months or a year. Remember that material costs continue to rise.

3. Add in the cost of extra liability insurance. Bidding on jobs for large companies or corporations requires more liability insurance than small construction bidding companies do.

Action Steps

The best contacts and resources to help you get it done

Construct a construction bidding image Getting active in the construction bidding arena and bidding on as many jobs as possible gets you in the public eye and establishes you as professional. Jump on in nationally and attract more clients as you find construction bid leads.

I recommend:  Sign up for membership at NationalContractors.com and get exposure to online construction bids in both residential and commercial fields. See government jobs listed also. Other online tools to find construction bidding opportunities include BidClerk, ConstructionWire, Dodge and Onvia.

Write a constructive construction bidding cover letter Present yourself professionally. Putting your best foot forward catches attention.

I recommend:  Use a template to help you write a bid cover letter that will grab the attention of potential customers. Help yourself win more profitable bids when you check out a free demo of construction solutions software.

Indicate your efficiency when bidding for construction projects Being a good time manager, planning and tracking all aspects of a construction job from bid to bidding farewell will help you win bids and compete successfully with other construction bidding companies.

I recommend:  Check out software that can help you with planning and tracking jobs. Use a portfolio management tool to impress future clients. Create a professional-looking estimate for construction bidding with small business financial software.

Tips & Tactics

Helpful advice for making the most of this Guide

• Bidding for construction projects successfully requires time, patience and perseverance to accomplish consistently. Find a mentor in your particular field who has been bidding jobs successfully for years and learn all you can.