Are you frustrated to keep on bidding without signing a single contract?
All the contractors out there have to work hard on estimating, but they don’t spare any time to follow up on the submitted bids. We offer a customized estimating package for you, we can prepare accurate construction estimates for you and maintain a follow up directory as well.
Most of the contractors don’t follow up, or make price changes or meet the project owners. We can help you resolve this issue.
Bidding Professionals LLC is a New York based cost estimating company that works with over 500 clients and prepare 200-250 estimates every month.
Let’s discuss the steps necessary to grow a construction business.
Meet Project Owners
Most of the construction projects are being awarded to the contractors who have a good relationship with the developer/builder. That is why, it is imperative to meet the developer/builder, build a healthy relationship and assure him that his funds are in safe hands. This is essential to survive in construction industry. Here is how Bidding Professionals can help you with that.
First of all, you have to prepare a list of potential clients nearby whom you can contact and meet up with. It is mandatory for you to find enough time every day to meet at least 3-4 new people. In the beginning, it might not work but it is just a matter of time when you start securing good amount of work.
An easy method to find leads to just google it. You will have a list of potential prospects right there. You need to copy the contact information along with the address and you have the list of prospects ready.
Get to know them:
When you have the prospects list ready, decide who to meet first. Meeting in person is preferred as it aids relationship building. But set an appointment on the phone or email before going to engage with them professionally.
Schedule a Meeting
Before visiting the project owner, it is advisable to set an appointment preferably on the phone, if not possible, then on the email. Here is an example of how you should start the conversation:
I saw that you are working on [name of the project], I am interested to bid on [name of the trade you want to bid on]…… “
It gives them a heads up about your visit. Repeat this process with everyone on your list.
When it comes to estimating/bidding a job, it is strongly recommended to approach your regular clients. These are the people who already have trust in you and your work. You can depend on them to get awarded on your bids.
Find a Good Estimating Team
After you get your hands on the project drawings, find an experienced estimating team to outsource the estimating to. Most of the contractors try to do the estimating themselves and it appears to be tiresome and time consuming. Hiring an estimating company is cost effective and allows you to focus on construction itself.
What is a good estimating team?
A good estimating team has the expertise to handle General Contractors and Subcontractors. Estimating team has to cover each and everything for a GC, like Masonry, Concrete, Drywall, Steel, MEP, Sitework etc so it is essential to have enough knowledge and experience to deliver a perfect GC estimate.
Similarly, a subcontractor has to focus on a specific trade. A subcontractor estimate is even more accurate because he has to focus on that single trade and make a good profit as well. He has to be extra careful with the bids because of the following factors:
Let’s take an example of steel contractor:
- He should be 100% accurate with the takeoffs.
- His price should be at least 20% less than GC so it won’t compromise GC’s profit.
- He should have an updated knowledge of market prices for steel.
- His price should be right on target. If he is on the higher side, he’ll lose the job. On the lower side, he’ll lose money.
This is why an experienced and well reputed estimating team is necessary to help GCs and subcontractors prepare precise estimates. If you are interested in hiring an estimating company, feel free to visit us at biddingprofessionals.com.
Find out Who Else is Bidding on the Project
In Construction industry, building relationships is the key to success. After bidding on a job, make sure to contact the architect, introduce yourself and ask them about other contractors interested on the job. Project Owners usually ask the architects to recommend any contractor so it is a good practice to build good relationship with architects.
FYI, Name of the Architect on any project is listed on the cover page of the project plans.
Optimize your pricing
After bid submission, you have to keep following up until they give a feedback on your bid. They might ask you to give a better price.
If the prospect tells you that your bid is too high, you can ask for other bids to double check and see if you can prepare a better price. We, at Bidding Professionals, tell our clients to go for negotiation, if possible, because it helps a lot to optimize the prices in future projects as well.
Another aspect to look into, is to discuss the scope of work. You might have included a few more items then the other bidders which help you adjust your bid.
We recommend our clients to not submit the bid a few days before the due date. Submit it on the bid date. The builder might use your price to get a better number from other contractors.
Follow up on every project
After submitting the bid, it is essential to keep following up on your bid. You have to present yourself so active with your bidding and follow ups that the contractor considers your bid. You have to build a strong relationship with him, as I mentioned earlier. Another strategy is to show your past work, this is crucial to build your trust.
From owner’s point of view, the lowest bidder is not always the best option. The best option as a contractor is one who equip himself with construction knowledge and management to execute the project on time. The owner is confident in him as he expresses his willingness to deliver the best.
To sum things up, there are 6 steps to bidding and winning jobs.
- Prepare a list of clients
- Build a relationship by meeting and talking about the projects
- Hire an expert estimating company
- Contact the architect to get the information about other bidders
- Optimize your pricing and negotiate
- Keep following up on all the projects