HOW TO BEST ACCOUNT FOR CHANGES IN YOUR BIDDING PROCESS
Over the years, we have come across different reasons for suboptimal bids. The most common reasons are all related to, you can probably guess it, changes! Many changes occur throughout a project's lifecycle. Sometimes they start as early as the bid phase. Changes to the project's scope that happen pre-bid are usually referred to as addendums. A few of these pre-bid changes come to mind.
3 Common Reasons for Bid Changes
Moving dirt as efficiently as possible during the bidding phase pays off
The first example is grading elevation changes. Sometimes, the grading plan elevation has to be raised or lowered to balance the site or account for a last-minute design change. Keeping optimal grading conditions front of mind will allow you to adjust your bids to accommodate these changes easily. Another frequent change is phasing. There are times when the original plans for each phase will be started, and in which order they will be done are altered. One reason prompting these changes could be that when the cut & fill analysis was reviewed, it made more sense to switch the order of the phases to maximize your resources. Moving dirt is costly; moving dirt more than once or further than needed is more costly. It costs you in labor, time, and fuel, so determining how to move the dirt as efficiently as possible during the bidding phase will pay off in the long run. We recommend that you always take a close look at your cut & fill analysis to assess what you have where and where it is needed to plan your phases in the best order possible. If you have to make changes upon further review of your cut & fill, then don't get frustrated, make the change, and adjust and be glad you caught it before any material was moved. A third typical example is configuration changes. These are sometimes more complex or major changes. It could be that the original plan had a parking lot in one location, and now it's being reconfigured to a different spot. It could be that the footprint size of the building drastically changed. These changes can seriously affect the scope of the project. They can change the quantities of your materials and result in significant grading changes. Though not as common as pre-bid, value engineering is best done while compiling the bid. In its simplest form, value engineering is a cost savings method implemented by the contractor to cut the overall cost of the project. Standard value engineering proposals include plans to balance the site by slightly altering the grading. Other submissions change the materials used or alter/simplify the design making the project more cost-effective. On a standard public bid project, you typically still bid the project according to the engineer's plans because you don't know if they will accept the changes you've proposed until after the bidding process is complete.
Bidding Competition Remains Fierce
When bidding on construction projects, there is never a shortage of competition. Many contractors bid on every project. Although getting your bid submitted quickly is essential, you should take the time to gather all of the necessary information needed to put together a realistic bid. You will lose money if you wildly underbid and won't win it if you drastically overbid. When you're putting your bids together, there will almost always be some unknowns. It is best to have a checklist or template that you can use as a starting point/basis for each project.
Putting together a realistic bid increases your chances of Winning
Speak with a Virtual Construction Engineer
In addition to adopting a flexible mindset when it comes to bidding, you can also reach out to our team. Our virtual construction engineers have the field experience and the analytical skills to review your takeoffs. They're equipped to work with you to create opportunities for value engineering. They can recommend specific techniques to improve your planning and, therefore, your bidding. Contact us to discuss how you can get more precise bidding!