Subcontractors bidding for work on construction projects face a number of challenges to submit a winning proposal. Effective bidding requires confirming the client’s requirements and budget while also ensuring your costs and profit margin are fully covered. Overbidding risks losing the job to a low-balling competitor. Conversely, a bid that is below your actual expected costs eliminates profit potential.
Here are ten tips to increase your chances of a successful, profitable bid:
- Meet with or speak to the prospective client/contractor. Discuss requirements and what will be necessary to fulfill expectations.
- If blueprints are available for the project, inspect them. If the job site is accessible, conduct a walk-through.
- Estimate the days involved to complete the work and look for special circumstances or complications that could impact the cost of getting the job done on schedule.
- Figure costs of materials and work hours involved as well as any other likely overhead. Allow for unexpected expenses. Estimate daily costs then multiply by the expected number of days to completion.
- Determine your preferred profit margin and add that figure into the total.
- The formal written bid must include name, business address, and other relevant contact info. Summarize the work to be done and state expected start and completion dates. Include payment terms as well as the terms of any warranty.
- Itemize all estimated costs for materials and labor. These figures may be subject to negotiation with the client, so allow for changes, if necessary.
- Arrange for a meeting with the client to present the bid. Be prepared to verbally describe all details of your planned work.
- Expect to negotiate terms, including completion time and costs, if required. Decide in advance what your negotiated limits will be.
- Following the presentation, provide the prospective client with business cards. Arrange a follow-up call or other meeting to provide additional information or answer further questions.
Get an edge when bidding on construction projects by utilizing data from building permits. Contact the professionals at Construction Monitor for more information.