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Factors To Consider When Bidding Public Construction Projects In Florida


Private construction projects carry their own set of challenges, but the requirements and process for contracting with a government agency can be even more complicated. When the project is funded by taxpayer dollars, transparency is critical. Therefore, the Florida statutes that cover bidding on a public construction project are strict. Contractors will invest considerable time, money, and resources to prepare a competitive bid, so it is essential to pursue the projects that make the most sense for your company.

While every project is unique, there are several factors that contractors should assess whenever faced with the decision of whether or not to bid. A Florida public contracting attorney can offer customized advice, though you should consider the following questions.

Will the Project Bring Profit? You do not even need to address the additional factors if you cannot answer this question in the affirmative. There is no reason to invest resources in bidding when you have no or limited opportunity to profit from the project. A careful assessment of your labor costs, equipment overhead, and supplies expenses is still necessary, and make sure to include taxes, insurance, workers’ compensation, and other factors. Once you determine what it takes to complete, you can evaluate potential profitability.

 Can Your Construction Company Deliver? Even if you can make some money from winning the bid, you must confirm that your company is capable of doing the work. Analyze current projects and upcoming needs, so you know where demand for crews and materials will be most profound. You must be able to deliver in terms of manpower, office staff, and supplies, without jeopardizing existing projects. Also, take a look at your financial capability to perform, keeping in mind bond and cash flow requirements.

What Risks Could Affect Performance? There are risks with any project, but identifying and managing them early could affect your decision to bid or not. Pay close attention to common risks that become obvious through historical trends, such as:

  • Incomplete or flawed construction designs;
  • Safety concerns for your crew;
  • Unknown and unpredictable site conditions; and,
  • Delays and accelerations. 

How Does the Project Fit into Your Long-Term Goals? This factor raises many other questions about how you envision the future of your company – and whether public construction projects will be part of it. When seeking to expand, you may invert more resources upfront so you are prepared for the larger public projects that come along as business opportunities.

A Florida Public Contracting Lawyer Will Advise You on Bidding

These factors should help guide you in deciding whether to bid on a public construction project, but there may be others that are important for your company goals. The location, duration, and scope could also affect your decision making. For assistance with assessing whether or not to bid, please call Linkhorst Law Firm, P.A. at 561-626-8880 or go online to schedule a consultation with a member of our team. Our office serves Palm Beach County and South Florida in a range of construction law matters, and we look forward to hearing from you.

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