Construction is a competitive business and every company is trying to outbid every other company out there. While there is nothing really wrong with that, there are certain things that you never want to do when you are bidding on a project.
Here are 4 common mistakes that people make when bidding on a project:
- Forgetting about indirect costs: Direct costs are always easy to remember, it is the indirect ones that always seem to cause issues. Some of these indirect costs will include the depreciation of your equipment, the insurance for your equipment, maintenance for your equipment, and other costs that come into play when using your equipment.
- Shortchanging your profits: You may be considering lowering your profit margin, so that you have a better chance of being awarded the project. This is a tricky situation, because yes, you may get the project, but you may also find yourself losing money at the end of it. We recommend that you stay up to date with current labor rates as well as the prices for all the materials. Also note, that sometimes it is better to not bid on certain projects, especially if they are not going to turn a profit for your business.
- Not using the most up to date technology: Construction programs are continuously changing and you will want to make sure that you are using the latest version, so that you can be as competitive as possible in your field. Many of these programs show you larger details of the project you are bidding on, which means that you will not miss any minute detail that can keep you from earning the most profit.
- Forgetting about the competition: Every company has competition and in the construction world, there are always two or three companies that seem to have a competition going with each other. We recommend that you keep this in mind as you are preparing your bid, especially if you are not one of these two or three companies. Their little (or big) mistakes could cost them the job and make way for you to have the winning bid.
Bidding on construction projects is an art and you need lots of patience to fill in all those blanks on the forms. Don’t make the mistakes that we listed above, so that you have a better chance of winning the project and making a name for yourself in the business.
The project managers here at CMS Bush are well-versed in the bidding process. We will always make the best call to protect your investment and ensure that your project will go off without a hitch. Call us at 407-316-8544 to discuss ways to improve your upcoming construction project in the Orlando area or in other areas of central Florida.