Competition in the construction industry has gotten fierce in the past few years. Individual companies have to be exceptional during a project, from beginning to end. One of the hardest adversary to overcome is and will always be the bidding process. There are ways to ensure that your company is succeeding.
1 – Not Paying Attention To All Costs
Construction management software is your best friend when it comes to the bidding process. The software not only helps you realize your direct costs, it helps you find the hidden, forgotten costs to include in the bid.
As an example we will consider a piece of equipment that you own out-right. It would be obvious to estimate the fuel usage on the job, but the software will help you consider depreciation, insurance payments, scheduled maintenance and any other costs it incurs. Those are the hidden costs that must be included in your bid.
2 – Failing To Project Profitability Correctly
When there is a shortage of jobs to bid on, it can be hard to refuse any and all bids that come along. Although figuring out your profit margin can be difficult, it’s vital that your company doesn’t undermine it’s profitability just to stay busy. When preparing a bid, be sure to have all the most recent information about labor and material costs. Be ready to walk away from the table if the numbers just don’t mesh.
3 – Keep Up With Advancing Technology In Your Field Of Work
Technology can be your company’s saving grace if you take full advantage of what’s available. Upgrading your construction software can help you pull together accurate estimates. Building Information Modeling (BIM) is now included in quality software platforms so that the people who are doing the estimating are able to see more than they have ever before. For example, construction parts can be separated from the comprehensive view of the structure to individually thoroughly examine.
3 – Not Paying Attention To Your Competitors
Paying close attention to how your competitors bid will help you decide if your company should change the way you bid, or even if some projects are worth bidding on. If you competition is consistently under-bidding you, it might be time to re-evaluate your costs.
Some construction companies use strict guidelines when bidding, look at the numbers a million times and only follow those numbers in front of them. Other companies fly by the seat of their pants and often “go with their gut.” The best way to succeed at bidding is to find that sweet spot somewhere in the middle of those extremes.