Starting a construction company is exciting, but when it comes to bidding on jobs, things can get tricky fast. It’s not just about throwing a number out there and hoping for the best. You need strategy, preparation, and a bit of street smarts to land the right projects and keep your business profitable. Jeff Spencer and Jerry Work from ProfitDig have put together 10 crucial tips to help you navigate the bidding process like a pro.
1. Know Your Limits (and Your Bank Account)
First things first—don’t bite off more than you can chew. Make sure you’re bidding on projects you have the resources to complete. That means having enough capital to cover materials, payroll, insurance, and any unexpected expenses. If you’ve got $82 in the bank, maybe start with something smaller before trying to build a skyscraper.
2. Check Bidder Qualifications
Most projects have specific requirements for bidders—insurance, certifications, background checks, and more. Double-check that you meet these before wasting time on a bid you can’t win. Time is money, and you don’t want to burn through both on a dead-end opportunity.
3. Mind the Deadlines
Every project comes with a start date and a deadline. Make sure you have the crew, equipment, and bandwidth to hit those marks. Missing deadlines can lead to liquidated damages—fines that can range from $500 to $2,000 a day. Those numbers add up fast and can sink a new business before it gets off the ground.
4. Study Your Drawings (Then Study Them Again)
Know the job inside and out before you bid. That means reviewing drawings carefully and understanding the full scope of work. If the project is outside your usual area, factor in logistics like how you’ll get equipment and materials to the site. The devil’s in the details, and missing one can cost you big.
5. Visit the Job Site
Drawings can only tell you so much. Visiting the site gives you a clear picture of existing conditions, potential obstacles, and terrain variations. It’s a simple step that can save you from costly surprises down the line.
6. Know the Soils (or Protect Yourself if You Don’t)
If you’re doing excavation or utility work, check for a soils or geo report. Knowing what’s underground helps you plan for things like rock removal or soil replacement. If no report exists, protect yourself by excluding certain conditions from your bid—like rock or unsuitable soils—so you’re not stuck footing the bill later.
7. Take Your Time—Don’t Rush a Bid
Good work takes time, and so does a good bid. Don’t let anyone pressure you into rushing a bid in a day or two if you need more time to do it right. It’s better to pass on a job than to win a bid you’re not fully prepared for. Missing a key detail in a rushed bid can cost you more than you’d make on the job.
8. Know the Specs
Different municipalities and counties have different specifications for construction projects. Make sure you’re familiar with the specific requirements for each job you’re bidding on—what works in one city might not fly in another. Missing a spec can mean rework, fines, or worse.
9. Get Multiple Quotes from Suppliers
Don’t rely on just one supplier when pricing materials. Reach out to multiple vendors to ensure you’re getting the best prices on everything from stone to pipe to storm drains. A few extra phone calls can save you a lot of money in the long run.
10. Keep Up with Addendums
Project drawings and specs often change as engineers refine their plans. Always check for the latest addendums and make sure your bid reflects any updates. Missing an addendum can mean bidding on outdated information, which is a fast track to trouble.
Bidding on construction jobs isn’t just about winning—it’s about winning smart. By following these tips, you’ll be better equipped to land projects that fit your business and keep you profitable. Jeff Spencer’s been doing this professionally for over 15 years and learned these lessons the hard way—so you don’t have to.
For more tips and tools to help you grow your construction business, check out ProfitDig online. Good luck, and happy bidding!