The recent surge in construction projects across the nation has made the playing field a bit more competitive. Contractors have to adapt their bidding strategies to these conditions, but still avoid coming on top of a bidding battle with a price too low to sustain their crew. Every contractor and construction firm owner needs their business strategy to achieve both short- and long-term goals. If you bid too low, you may win, true, but then you can’t pay your crew or even yourself. What then?
While the new economic up spin in construction is worthy of applause, leaders in this industry must develop business strategies that allow them to gain new projects, while avoiding the pitfalls of a bidding war.
Avoid a Climate of Suicide Bidding
Analyze past jobs – how much you spent and how much you made – to see if you’re throwing out sustainable bids. Getting the project means nothing if you can’t afford it. Do any of these jobs fall into the realm of suicide bidding? If you can’t pay your workers, – permanent, temporary and contract – then your reputation as an employer is on the line. If you don’t have workers or equipment to complete the project, then your reputation as a construction business could be tarnished. Bidding below the cost not only hurts your business, but it hurts the industry as a whole. It can drop the quality of work other firms are able to offer, as well as reduce the average rate clients are willing to pay.
Take Advantage of Construction Bidding Software
This is the era of the technological revolution, and the construction industry has made good use of some of these advances. From new and better equipment, more precise tools and advanced administrative software, running a job site has most certainly been impacted by the digital age. Technology not only has an influence on the job, but before the job, as well. Bidding software lets contractors enter in the facts and figures to help calculate the true cost of a job.
Know Your Market
Whether you’re primarily a residential or commercial contractor, you need to have a solid grasp of your market. What is the economic climate facing other construction companies in your field? What types of jobs are coming up most frequently and what are the average costs? It is equally important to know what kind of skilled laborers and tradesmen will you need to complete your next job. Having a thorough understanding of your market allows you to come up with bids that are both fair and profitable.
If your company is looking for skilled and reliable workers in the Southeast U.S., CCS Construction Staffing can help you find the people you need. We have the expertise, experience and network to fit the right people into the right job. Give one of our experienced recruiters a call today.