When bidding on a construction project, particularly if you’re an underground utility contractor, understanding the details of your job and how they impact your bonding limit is crucial. Ignoring the specifics can cost you jobs, money, and even your reputation. Here are some essential points to keep in mind during the bid process to avoid those pitfalls.
1. Understand Local Specifications and Regulations
The first step is to get familiar with the specifications of the project and the local regulations of the municipality or district where the work will take place. Every area has its own rules, and if you’re not aware of them, it can slow down your project, alter your methods, and create friction with inspectors. A bad relationship with an inspector can lead to delays and complications. So, do your homework and know the local specs and make sure you’re in sync with the inspectors.
2. Consider Accessibility
Think about how easy it will be to access the job site. Can you get your crews, equipment, and materials in and out smoothly? Will you be working around other contractors? If the site is congested, you may face additional challenges, such as needing to store materials offsite and bring them in bit by bit. This can slow down your production and increase costs, so factor this in when preparing your bid.
3. Know Your Materials
Materials can be a game-changer in your bid. For instance, if you assume you can use PVC piping but the project requires ductile iron, your costs could increase by 20 to 50 percent. Understand the material requirements outlined in the specs, and double-check that they align with your plans. If the materials change, you need to know that early on to adjust your bid accordingly.
4. Understand Backfill Requirements
Pay attention to the type of backfill required, especially if you’re working in areas that will be paved, like parking lots or streets. While you might typically use compacted spoil material for backfill, some areas may require 100% stone backfill, which is far more expensive. Stone can cost over $28 per ton, and for a sizable project, that can quickly add up. Make sure you know what’s allowed and plan for the extra cost if needed.
5. Coordinate Closely with Suppliers
Communicate clearly with your material suppliers to ensure you get the right materials approved by the local utility district or municipality. If you have a submittal package approved for a specific brand and then receive a different brand due to supply issues, this can cause significant headaches. You could end up having to remove and replace materials already in the ground, which is a costly mistake. To avoid this, make sure your suppliers know the approved brands and provide them to you.
6. Account for Changes and Re-Submittals
Sometimes, your submitted materials might be partially approved or require changes. Stay on top of these changes and communicate with your supplier to adjust the order accordingly. It might mean a price adjustment or finding an alternative product, but handling this proactively can prevent delays and additional costs.
7. Know Your Bonding Limit
A key takeaway here is to always know your bonding limit. Your bonding limit represents the maximum amount you’re allowed to work on at a given time, which directly impacts the jobs you can bid on. If you overextend yourself beyond this limit, you could lose out on the job or worse, face financial penalties. Keeping track of your bonding capacity is crucial to not only winning bids but also ensuring that your company doesn’t bite off more than it can chew.
In construction, being thorough and detail-oriented during the bidding process is vital. Understanding your job specifications, materials, and bonding limit can save you from costly mistakes. Make sure to coordinate closely with your suppliers, know the local regulations, and always account for potential changes. By doing this, you’ll position yourself better in the competitive bidding environment, protecting both your jobs and your money.
So, remember these tips next time you’re bidding on a project. A little extra effort upfront can prevent big headaches down the road.