When you’re working as an independent contractor, great bidding skills are a part of the job description. Many first-time bidders incorrectly assume that landing successful bids is about negotiation skills—but the reality is a little different.
Effective bidding is dependent on your extensive knowledge of several factors, such as market conditions, competitor rates, and material prices. The reason behind this is that bidding unreasonably high will likely result in no job at all, while bidding too low means that the costs will cut into your profit margins later.
To help you land successful bids, here are some tips from our construction cost estimation experts.
Tip 1: Conduct an Initial Assessment
When a potential client approaches you for a bid, ask them for some time to conduct an initial assessment. This means reviewing any blueprints and guidelines that the client has provided thoroughly.
Additionally, it’s also a good idea to conduct a physical analysis of the location, job setting, and access conditions. This should help you determine the feasibility of the project. For instance, long commutes and hazardous work environments can be deal-breakers because they require specialized equipment and extensive site preparation.
Tip 2: Itemize Material Quantities
Any materials required for the job should be carefully itemized and priced during the costing process. Make sure you leave room for waste and service charges for obtaining the goods. In some cases, clients might opt to source the materials themselves.
Tip 3: Use Past Experience
Use the invaluable experience you’ve gained over time to determine bids. Compare previous work that you’ve done and whether there were any additional costs that came up later during the job. Be sure to keep a healthy margin of error and cushion for possible contingencies when determining your bid.
Tip 4: Determine the Cost of the Job
There are some fixed costs that don’t vary, even if the job is on a small scale. Insurance, transportation, licensing, and construction permits are all overhead costs that you need to take into account when preparing your bid.
Outsource Construction Cost Estimation to the Experts
When planning a residential or commercial construction project, there are several costs that you need to keep in mind. To ensure you get the most reliable estimate possible, it’s best to outsource estimation to the specialists.
Remote Estimation offers accurate commercial estimating services and residential project estimation services that can help you ensure the profitability of your project. To get started, request a quote today.