Costly Bidding Mistakes to Avoid

A successful construction project is more than just building a structure with the proper materials and specs. There’s another matter you can’t overlook: money. In order to make money on a project, you need to bid it properly.

A good bid includes labor, materials, equipment, permits, and other expenses. You should not be intentionally coming in low in order to win a project. After all, what’s the point of working if you’re losing money instead of making it?

Don’t lose money on your next construction project. Here are some bidding mistakes to avoid.

Bidding on the Wrong Projects

Just because you’re a contractor doesn’t mean that you should bid on every construction project. You likely have specialties or types of construction that you enjoy doing. Focus on them. Before placing a bid, take a look at the scope and requirements. Can you handle the job based on your experience and workload? If not, then don’t be afraid to pass.

Not Visiting the Site

Don’t place a bid based on plans alone. You’ll want to visit the site in person to look for any unique situations. For example, a steep location could pose a challenge for delivering materials. Always attend the pre-bid meeting to get an idea of the requirements so you’re not in the dark.

Not Getting Clarification

When preparing a bid, you need to make sure you have all the information you need to make an informed decision. This means fully reviewing the plans and specifications to make sure you can complete the work. If you are unsure of any aspect of the project, you need to seek clarification from the point of contact. Do not ever make assumptions. If you can’t get your questions answered, then don’t bid on the project.

Not Properly Calculating Labor Costs

You need to be able to pay for manpower to complete your project. This means calculating the number of man-hours required and multiplying that by an hourly wage. You will have to take into consideration the experience of your workers as well as their productivity levels. You will also need to consider turnover, absences, injuries, and overtime. These factors all cost extra money.

Math Errors

Math errors are a common issue, Don’t rely on your brain alone. Always use a calculator or construction software to make accurate calculations. On top of that, always make sure you are inputting numbers correctly. Double-check and even triple-check your work to make sure. You don’t want to underbid or overbid the job.

Contact Us Today

Bidding appropriately is important in the construction business. The process takes a lot of time and effort and is much more than just throwing out a number.

A poor bid can lead to legal issues. Seek legal help from the Florida bid protests, bid disputes, and public contracting lawyers from Linkhorst Law Firm. We have the experience to help you challenge low bids as well as defend you against challenges to your own bids. Schedule a consultation today by filling out the online form or calling 561-626-8880.

Source:

constructconnect.com/blog/13-costly-construction-bidding-mistakes-how-to-avoid-them