Tips for Efficient Commercial Construction Bidding

Managing the bidding and vendor selection process is one of the most important roles of a construction project manager. During the bidding process, the construction project manager sends RFPs (requests for proposals) to qualified subcontractors for supporting the construction project. Upon receiving replies, the project manager vets and ultimately selects the vendors who will work on the project. Here are some tips for ensuring an efficient construction bidding process:

Get the blueprints/project plans: The first step to the construction bidding process involves reviewing (or creating) the project plan. The project plan shows the type of work the project needs (roofing, concrete, hvac, fire alarm, etc.), what the individual requirements are, and how the overall project should come together. This plan enables the project manager to gain knowledge on which types of companies to call and receive quotes from.

Reach out to qualified companies and sub-contractors: The next step for the project manager is to reach out to the qualified companies and sub-contractors for each type of work needed. The project manager should obtain numerous bids for each area of the project in order to find a suitable price for the overall project budget. Once all of the desired bids have been put together, the project manager can calculate the final estimate for the project.

Use construction estimating software to calculate the real costs of the job: These days, construction management consultants use powerful tools and construction estimating software to help reduce the guesswork that goes into creating a bid. Software makes it easy to adjust changing requirements or costs without redrafting the entire bid. This also gives subcontractors easy access to multiple large files when deciding whether they will bid or not bid on the project.

Make sure you make profit: Don't bid too low. Many commercial contractors make attempts to win the project by undervaluing their services. It’s not worth it. Overhead fees must be included in the bid.  If you just ask for the cost of the job, you will lose money. You must substantially mark up your final price to make sure it is a profitable project in which you will surpass expectations.

Explain the bid in person: Discussing in-person about costs, differing figures from another contractor, and the overall project vision. This will eliminate miscommunication about the proposal or project.

Many construction companies lose money on jobs when they try to go below margin to compete with other people’s bids. If done correctly, with the help of an expert project management service, builders can get the ideal bid for the project which works for all involved parties.