When to Bid for a Construction Project

Well the answer to this question lies in the agut feeling of the contractor and also on what prospects does he see in that project. But this gut feeling does not come on its own, there are a few parameters which needs to be checked while making a decision. These are;

• Competition: Who else is likely to bid this job? How many bidder will there be? Are the bidders equal, or are they smaller contractors with lower overhead?

• Nature of the job: Is the firm capable of building the project? Has the company done any similar work in the past? Do the firm’s superintendents and project managers have the right kind of experience to handle the job?

• Market conditions: Is the job extended over a long period? Will there be many unknown factors such as labor rates, material prices, or other prevailing economic conditions which may upset the project?

• Firm’s previous experience with the owner or architect: Has the company done any work with them in the past? Has the relationship been satisfactory? Are they a good client or a good architect? Would it be prudent to work for them again? Is the company obliged to submit a bid due to this past relationship?

• Cost to prepare a proposal: Does the probability of getting the job warrant the cost of preparing the proposal? What are the chances of winning the job at a reasonable profit?

All of these factors should be considered in a logical way in order to reach a decision to bid or not bid a job. It is also important that the contractor pursue this thinking as early as possible and reach a firm decision in order to allow as much time as possible for the estimating staff to prepare an accurate bid.