To boost your chances of crafting a winning construction bid, it's essential to plan meticulously, know the project inside and out, and implement systems that ensure accurate estimates.

“According to the Australian Bureau of Statistics, the construction sector generated $360 billion in revenue in 2021.”

The construction industry significantly contributes to Australia's economy so competition can be fierce. A professional and accurate construction bid can give you a leg up on your competitors. 

The following post explores precisely what to cover to increase your chances of a successful bid.

Understand the project scope

When you understand the full scope of a project, you can better identify the intricacies and potential hurdles ahead, including budget overruns, labour shortages, site conditions, and more.

Here are a few things that can help you fully grasp a project’s scope:

• Review project documents: Ensure you have all the necessary plans, specifications, and contract documents. These documents can include architectural drawings, engineering plans, bid forms, and scope of work documents. The last thing you want to do is to be waiting on documentation which may hold key information that will affect your bid.
• Conduct site visits: You identify potential challenges and opportunities by physically inspecting the site.
• Consult with people involved in the project: Consult with architects, engineers, and clients to obtain answers to any questions or clarification about the specifications. You’ll be surprised what these conversations may uncover.

Make accuracy your best friend

By accurately calculating your costs, you can accurately understand your margins. An accurate takeoff is key to understanding all the materials and labour you'll need. Get this part wrong, and you risk blowing the budget or losing the job. 

Some tips for accurate takeoffs include:

• Use digital tools: Traditional methods like pen, paper, and highlighter are notorious for leading to human error. Tools like estimation and takeoff software drastically reduce the chances of mistakes by accurately measuring quantities directly from your plans.
• Double-check measurements: Double-checking your own work can help to avoid messy mistakes in the future. Always verify your measurements to ensure accuracy. 
• Update regularly: Regularly update your takeoff with any project scope or design changes.
• Use integrations: Using software like Simpro or Quickbooks alongside construction takeoff software can help you push your estimates to quotes, track expenses, customise invoices, and run reports. 

Strike a balance between competitive pricing and making a profit

When pricing your projects, balance maximising your profits with maintaining competitive pricing. Here are some things to consider:

• Material Costs: in 2021 alone, home building material costs in Australia rose by 7.3%. Prices constantly fluctuate, so it’s crucial to keep an eye on them to stay ahead.
• Labour Costs: Ensure your labour costs are current with current market rates. 
• Overheads and Profit Margins: Don’t forget to include your overheads (salaries and wages, equipment, insurance, etc.) and desired profit margins (gross profit, net profit, etc.). 

Wow potential clients with a detailed and clear proposal

A proposal needs to be clear and straightforward. Here’s what you should include:

• Executive Summary: Give a quick overview of your bid, highlighting why your company is the best choice.
• Scope of Work: Spell out exactly what you’re covering in your bid so there are no surprises. Your scope of work should include the project overview, drawings and plans, a project schedule, roles and responsibilities, and a cost breakdown.
• Cost Breakdown: Lay out all the costs in detail. This cost breakdown can include labour costs, materials costs, equipment costs, and more.
• Timeline: Map out the project timeline with key milestones. Let everyone know when to expect what.
• Terms and Conditions: Outline any terms and conditions. Keep things clear from the beginning.

Leverage technology with construction takeoff software

Leveraging tech can give your bids a competitive edge. Using tools like Groundplan’s estimation and takeoff software, you can quickly and accurately measure quantities and compile estimates, share and collaborate on project documents with your team in real time, and reduce the risk of errors with automated calculations and updates.

Win a construction bid by using takeoff software. Sign up for a 14-day trial with Groundplan today and see the difference it can make for your next project.