Alfa Builders
How to Compete in a Tight Bid Market
Today’s commercial construction market is extremely competitive. Many companies are discovering that their previous means and methods for bidding projects won’t work.
So what can we do?
Expand Your Sub and Supplier List
We all get in a rut of calling on the same companies to bid on upcoming projects. I know in the commercial construction market in Montgomery, Alabama it is easy to get stuck in that pattern.
But if you want to have a chance, you need to cast a wider net and ensure you get the best coverage. Low prices are coming out of the woodwork, so do all you can to ensure you get them.
Consider Self-Performing More of the Work
In the market conditions that existed just a few short years ago, general contractors could subcontract almost all of the field work and still land their share of the projects available.
But with an ever tightening bid environment if you don’t have the option to self perform any work, you are most likely going to be on the outside looking in.
Evaluate Your Overhead and Profit Margins
Sharpen your pencil and take any unnecessary overhead items out of your estimate. If you aren’t going to need a line item, delete it.
Also, take a hard look at your profit margin. If you drop it a percentage point or two, you could be in the drivers seat on your next bid.
In Conclusion
Following the same practices and hoping for a better result in futile. So take some proactive steps to improve your changes to compete in today’s market.
If you have any thoughts about the steps you can take to be a more competitive bidder, please comment or feel free to contact me.
