Everyone thinks the hard work in construction is in the actual building. But in fact, that’s the fun part—it’s what you signed up for when you first got involved in this industry. 

The real grind happens before a single shovel ever hits the dirt: the construction-bid-proposal process, in which you essentially apply for jobs over and over again, only to get “laid off” at the end of each project, left to find another employer. It’s a necessary part of the business, but that doesn’t make it any more fun.

For general contractors, a bid-to-win rate of one out of six is standard, and some see worse returns than that. Roughly 83 percent of your bid-proposal time is spent on the drudgery of paperwork, and when a client chooses the lowest bid from a less-qualified competitor, it can be maddening. But, take heart; there are a few simple things you can do to set your bids apart from the pack and make your potential clients take notice.

1. Move quickly

According to Honest Buildings, a capital planning and project management platform purpose-built for real estate owners, the median time it takes for the first bid to come in following a request for proposals is 8 days. That means there’s more than a week’s time between when the client begins to expect bids and when the very first contractor is able to talk to the client. This time gap is a huge opportunity for any construction business looking to win a bid.

Obviously, crafting a bid proposal isn’t like applying to a job ad on Craigslist. You first have to compile a huge quantity of data, measurements and budget figures to create a cohesive argument as to why the client should select you. That takes time. But take a good, hard look at your current timelines. Then decide: If you really tried, could you shorten it?

If you could turn that bid proposal around in, say, 4 days, think about the tremendous advantage that would give you. You’d most likely be the very first bidder to reach the client’s inbox. At this stage, clients are working through myriad questions in their minds—questions like, “Is this part of the project even feasible from an engineering standpoint?” and, “Is my cost expectation for the flooring reasonable?”

As soon as the client receives that first bid, they’re looking to find the answers to those burning questions. If you’re the first to move, your proposal becomes the standard by which they judge their project expectations. Don’t underestimate the importance of this aspect of your proposal. It’s a simple change that can have a gigantic impact on your ability to win bids.

2. Talk to the Client

Of course, being first won’t keep you on top of the client’s mental list forever. You must nurture the relationship you’re building and keep redirecting the client’s attention to your proposal. Don’t worry about the client comparing other proposals to yours—you’ve already set the standard. Just keep “teasing” your potential client with more information at each stage of the process. Here are a few ways you can do that:

• Anticipate your competitors’ bids—You probably have an idea of some alternatives your competitors might propose. Follow up with the client to discuss these alternatives and why your approach is superior. Otherwise, your potential client may give these alternatives equal footing with yours.
• Anticipate your client’s concerns—Research past projects on which the client has been involved, as well as what sort of issues were most important. Or, even better, ask them outright. For example, if a previous contractor badly underestimated heating, ventilation and air conditioning (HVAC) costs, explain how your company will avoid committing the same mistake.
• Create a one-sheet—A single sheet that lays out the basics of your proposal in a visual style is a great item to pass on to your potential client at a key point in the process. A perfect time would be on the twelfth day, after the request for proposal is released, and the client probably has a few bids in and is starting the process of figuring out which one to go with.

3. Work on Your Value Proposition

You may not think that a past competitor who lowballed you and won the job had a compelling value proposition, but actually, they did. They offered the client the opportunity to save a bunch of money at the outset. That’s the simplest value proposition there is. What you need to do is offer the next client a better value proposition than being the cheapest. That race to the bottom just means disappointed clients and razor-thin profit margins.

All clients want to save money, but most realize that they have to pay for high-value products and services. People pay for value over price all the time, whether it’s brand-name paper towels that do a better job than the generics or higher-quality electronics that offer more features and last longer than those of lesser quality.

our future clients are no different—they will pay for value if you can show, not tell, your value proposition to them. So, how do you show value? Take the hypothetical client with the previous HVAC disaster as an example. If you hired a competent HVAC specialist to work (successfully) on previous projects, that information is will render you more than enticing to someone who saw the budget of their past project balloon by tens of thousands of dollars because of the mistakes of an unqualified firm.

If you don’t have such a specific example to point to, focus on your customer service. Show how you treated your past clients when crises inevitably arose and how you kept their minds at ease. Whatever it is, there’s something you do better than anyone else. Identify that and then find ways to demonstratively communicate that to potential clients.

4. Put a Plan into Action

These are simple, fundamental ways you can increase your rate of bids won. Now it’s time to take action and come up with a plan. To begin:

• Hold a meeting with your team to figure out how you can shorten the bid-proposal timeline so that you can submit your bids first.
• Carve out some time to research your potential client after the initial bid is in so that you can begin crafting a follow-up strategy.
• Create a simple, succinct value proposition that will separate you from the pack and then figure out ways you can demonstrate that to the client.

Source: https://www.constructionbusinessowner.com/technology/how-win-construction-bid-proposals

How Was The Construction Sector Affected By Covid?

There’s no doubt that the ongoing pandemic and crisis have affected nearly every aspect of our lives. This kind of global shutdown and panic hasn’t been seen with a health crisis in living memory, which is saying a lot. However, this doesn’t mean that the world has to stop turning. There are tons of everyday operations that can be carried out despite the effects of the pandemic. Let’s take a look at how that this pandemic has impacted construction cost estimation and its related processes.

How Is Inflation Impacting Construction?

How the Pandemic Affects Construction? Sitework estimation and quantity takeoffs are two of the main factors associated with construction cost estimation. Before we get into how these have changed, we must understand how construction itself has changed direction. Global health experts and epidemiologists are arguing that our existing methods of conducting work, current building infrastructure, and even homes are incompatible with social distancing guidelines. This means that contractors will have to evaluate the possibilities of social distancing during construction work, architects will rethink how they design commercial spaces, and residential projects will be realigned. Amid all this, we’re also dealing with an economic crisis, which means investment in large projects is volatile and, in some cases, has dried up.

What Is the Current Construction Inflation Rate?

How New Construction Procedures Can Affect Costs? With our previous methods for construction designed to lower costs and raise efficiency, it’s time to re-evaluate how labor is utilized and construction tasks are completed. The kind of social distancing required means that labor costs could rise because of longer completion hours. Moreover, as with any workplace where people are collaborating to finish projects, the risk of the space turning into a transmission hotspot is very real. This means that health insurance costs, days off, and demanded wages can be higher. If we’re talking redesigns from scratch for commercial spaces that are purpose-built to allow social distancing, then metal and lumber quantity takeoffs are likely to look different. This is because essential design priorities are changing for good.

Why That Makes Construction Estimation a Harder Task?

Essentially, all of these factors mean that construction estimation services are walking a new path. With previous methods of estimation, there were certain ground rules that were taken for granted. With high labor costs, material shortages, raised prices, and extra design costs, estimating total costs is a dicey task right now. Even construction cost estimation software may fail here, since taking the larger climate into account isn’t a system capability. Instead, the need of the hour are expert construction estimation companies that have experience with manual calculation as well as digital calculation to ensure that no detail is missed. At Remote Estimation, we can help you get an accurate cost estimation in the USA, including both residential and commercial estimates

Quantity Takeoff and Cost Estimating

Quantity takeoffs are complicated numbers to calculate and handle, but their main purpose is really straightforward. Also known as construction takeoffs, this segment of construction estimation is essentially a list of all the materials needed for a project. The appropriate quantity of each material is usually listed as well as the per unit and the corresponding total cost. Although this sounds simple, construction projects are extremely complex and accurately estimating the use of each kind of material isn’t all that easy.

How a Quantity Takeoff is Calculated

Quantity takeoffs are created with an extensive assessment of project requirements, plans, blueprints and possibly 3D models. Construction estimation specialists use their expertise, critical thinking and judgment to estimate the total amount of material. After that, the market price for said materials can be applied and the total cost calculated. This process can take some time, especially given the different kinds of subcategories in quantity takeoffs. Metal and lumber takeoffs are just two examples of commonly used construction material that will be included in the list. These days, intelligence software has taken over a large part of that process, leaving the technical compilation and calculation aspects to the application.

How Digital Takeoffs Are Calculated?

Unlike manual takeoffs, the process for calculating digital takeoffs does not involve compiling long lists of construction components. Instead, the cost estimation software requires blueprints and drawings to be scanned for the system to analyze the material requirements. With additional options to customize the software’s calculations, professional estimators can add or reduce the takeoff produced automatically. At this stage, factors like human error, wastage, or requirements that drawings don’t account for can be added. Digital takeoffs are preferred these days not only because of the lower error rates, but also because of the easy additions and accountability they provide.

Why Quantity Takeoffs Matter in Construction?

Quantity takeoffs are one of the most important segments of a total construction cost estimation. Other parts of a complete quote include labor costs, sitework costs and rental costs.

These quotes are often a crucial part of negotiations between project owners and contractors, especially if the project is bid upon. In that case, construction tenders are often won based on estimates presented by contractors. The takeoffs especially help set accountability between all stakeholders, which helps prevent potential conflicts over the way a construction project is being executed. To make sure that your commercial and residential projects estimation is accurate, enlist our team at Remote Estimation. We provide expert sitework estimating services, like masonry estimating, rebar estimating, drywall estimating and takeoff services for contractors, subcontractors, suppliers and project owners.

New Drywall Installation Cost Estimation

Rapid changes in material costs can make it difficult to determine the cost of your next drywall project, especially since the cost of a drywall installation can fall anywhere between $955 and $2547. The geographic location, job specifications, and labor costs all have a substantial impact on the final price. Plus, if you’re adding specialty material such as Class X drywall or greenboard or installing elements that require expertise such as archways, then you can expect the price to go up further. Clearly, there’s a lot that goes into a drywall project estimate—which is why choosing a reliable drywall estimating service can help you avoid the headache and enjoy accurate estimates that land you successful bids. Here are some key aspects a professional construction estimation company takes into account:

1. Material Costs

While this one is quite obvious, the tricky part is managing different requirements. For instance, are there any special projects that require quarter-inch drywall? Or do damp areas require greenboard installation? What about fire-prone areas that need heavy Class X drywall sheets? The second part is keeping track of material prices that fluctuate rapidly. An accurate estimate of current material costs can help you land an agreement with the supplier and lock in prices for the future.

2. Labor Costs

Having the right crew on hand can make or break your project—it can make a significant difference in the efficiency, cost, and profitability of the job. Experienced drywall hangers and tapers might charge more, but they’re better equipped to handle specialty projects and often work at a faster pace too. The specification of the job will determine the level of expertise you require.

3. Job-Related Costs

Additionally, drywall estimating service providers will look at miscellaneous costs that you’ll incur for a specific project. This includes permits, prep work, and possible rentals that you might require. Even smaller expenses, such as providing lunch to your workers on a fast-track project, will eventually burn through your profits. Hence, it’s critical to understand the nature of the job and consider every potential expense.

Looking for Reliable Drywall Estimation Services in the US?

With several decades of combined experience in the construction industry, the team of expert cost surveyors at Remote Estimation can develop reliable cost estimates for your project. Choose our precise drywall estimating services to save time, effort, and money. For further details, call (630) 999-6501 or request a quote now.

Like many other industries, construction has also taken a hit following COVID-19. Although the pandemic has undoubtedly made it more difficult for contractors to operate, it’s important to note that construction profit margins have been plummeting since 2014. Recent statistics from the Journal of Building Engineering indicated that profit margins were down to 0.38% in 2019. In light of the situation, operating in the construction industry seems nearly impossible—but before you decide to throw in the towel, we suggest taking a look at the advantages of construction estimating services for contractors.

What Cost Estimation Companies Can  Do?

We know what you’re thinking: What can a construction estimation company do to improve my bottom line? Why outsource estimation when I can do myself for less? Well, it’s all about ensuring your construction business operates profitably, rather than incurring a loss. Inaccurate cost estimates are the primary reason why contractors lose significantly more bids than they win. In many cases, even when contractors win a bid, they still ending up losing out because the actual costs are more than the estimate. Designing a detailed and precise material takeoff or construction estimate isn’t an easy task—and an inaccurate estimate determines the fate of your project. While outsourcing estimation might seem like an added expense, it’s an investment that helps you determine exactly how lucrative the project will be.

What Are The Benefits of Cost Estimation?

Both commercial and residential construction estimating services can take advantage of these five great benefits: 1. Win more bids: Fast, accurate, and detailed estimates increase your chances of winning bids. 2. Eliminate overheads: Avoid overheads that cut into your profit margins. 3. Save money: Stay within budget and ensure better margins. 4. Eliminate wasted time: Avoid the downtime and hassle associated with going over-budget. 5. Grow your business: Win profitable bids and expand your construction business.

Find Reliable Construction Estimation Services in USA

Outsource the estimation process to the experts at Remote Estimation and focus on other tasks that’ll get you winning bids. Our team of experienced takeoff estimators can save you time, effort, and money. ParagraphWith over ten years of experience in the industry, we offer high-quality cost estimation services to clients in over 20 states. Our extensive list of offerings includes residential projects estimating services, concrete estimating services, sitework estimating services, and much more. For further details, call (630) 999-6501 or request a quote online.

Quantity Takeoff in Construction

Quantity takeoff in construction emerges as key factor. As digital transformation continues to disrupt the construction industry, we see many contractors opting to outsource ancillary departments and focus on what they do best. Construction companies that are leveraging digital technology to become more agile seem to be reaping substantial benefits—firms report that costs fell by 4-6% while construction productivity went up by 14-15%. Among other solutions, construction estimating services have become highly popular with contractors in the United States. The reason being that cost estimation helps builders improve profitability, win successful bids, and maintain critical cashflow needed for long-term growth and success. Let’s break down exactly how.

1. Win More Bids With Accurate Estimates

Fast and accurate estimates from industry experts can help you break down material needs and related costs for the project. Details are critical here as they can help ensure a more precise material takeoff. For instance, when clients use our flooring estimation services, we offer estimates for various materials such as LVT floors, VCT tiles, rubber tiles, wood floors, etc. The cost of installation can also vary depending on the material so we provide specific labor costs as well. This specificity helps our clients win profitable bids.

2. Eliminate Overheads That Lower Margins

When the estimate is closer to the true cost, contractors can avoid the cost of going over-budget. Additionally, when you outsource cost estimation, you no longer have to maintain a team of professional estimators in-house. You can just avail services whenever you have a project on hand, and avoid the overheads associated with an idle team.

3. Prevent Hassle and Wasted Time

Material prices can fluctuate significantly, especially when to you take into account larger projects that take 4-5 years to complete. As contractors, you don’t have the time to chase prices, spend hours trying to track rates in your region, and manage price sheets from your vendors. Instead, you can hand over the grunt work to a dedicated team that offers quick and accurate results—saving you time, effort, and money.

Work With Cost Estimation Experts Now

With several decades of combined experience in the construction industry, our team of expert cost surveyors can develop reliable cost estimates for your project too. Our list of satisfied customers includes general contractors, subcontractors, architects, managers, and developers in the construction industry. Our extensive list of offerings includes residential projects estimating services and concrete and rebar estimating services. For more information, call (630) 999-6501 or request a quote online.

Developing a construction estimate is one of the most crucial—and difficult—aspects of a project because it directly impacts the profit margins. This is also why it’s imperative for the estimate to be precise and accurate. The entire project budget can be affected if the estimates are off by a considerable amount, leading to costly delays and project losses.

With the help of a construction estimating firm, general contractors and sub-contractors can keep projects on schedule and put together a budget that ensures project success.

Professional estimators keep track of the actual labor costs, equipment and material costs, subcontractor expenditures, and other budgetary matters while also taking into account the realities of the site, including the soil conditions, environmental protection, weather, site layout, etc.

With an accurate construction estimate at-hand, contractors can determine exactly how long the project in question will likely take and how much it will cost them.

Let’s look at some other components that go into creating a comprehensive and precise construction estimate:

1. Quantity Takeoff

Quantity takeoff is the process of converting information from structural engineering drawings, architectural drawings, plumbing drawings, and electrical drawings into a list of items whose quantities can be measured.

A construction estimator determines the actual costs, measurement of material, and labor needed to complete a project. Quantity takeoff is a crucial part of the process since it helps the contractor determine if the project is profitable.

2. Labor Hours and Rates

Professional estimators use their experience to estimate the labor hours required and the rates at which they’ll be paid.

Additionally, the labor productivity at each stage is also taken into consideration, along with the possibility of overtime work and the cost associated with those hours.

3. Direct and Indirect Costs

Expenditures of the project are classified into direct and indirect costs.

Direct costs are the labor, material, and equipment costs that directly account for a specific activity in the project.

Indirect costs or overhead costs, on the other hand, are expenses of items that aren’t directly allocated with construction activities. These overhead expenditures include security costs, administrative costs, quality control, legal fees and permits, and costs of temporary structures.

Outsource Construction Estimation Today!

Cost estimation not only helps contractors determine the profitability and feasibility of a construction project, but it also ensures that all the involved parties deliver the project within budget and on time.

At Remote Estimation, our quantity surveyors and estimators take into account the market trends and current construction standards to provide accurate bids that allow construction projects to move forward successfully.

From drywall, flooring, and lumber estimation to sitework estimating services, we offer it all. Get in touch with our team to request a quote.