TO BID OR NOT TO BID? That is the question.

Jan. 11, 2013 - PRLog -- A subcontractor is invited to bid a project. A decision must be made. To bid or not to bid? A typical subcontractor will look at the contracting firm, the project, the competitive environment and it’s personnel in making its decision. When deciding to bid a project, time and money and other crucial factors must also be weighed appropriately.

Bidding a project is costly.

A typical subcontractor spends a considerable portion of time and effort to submit a properly thought-out proposal. As such, bidding opportunities must be interlaced among the normal high priority of running the company and managing and servicing current projects in the field. A contractor will not normally elect to risk and possibly waste their funds and time on a bidding competition unless the conditions appear advantageous. They will not ordinarily participate in all available bidding opportunities but will decide which to enter on the basis of numerous practical and subjective considerations.

The most crucial factor a subcontractor faces during the bidding process is its probability of getting the job.

The competitive environment
The number of bidders involved directly influences a subcontractor’s decision to bid. If the numbers of bidders is too excessive there is less incentives for a subcontractor to work up its best price or to accept the bidding invitation.

Reputation of the general contractors
There are general contractors who unfairly practice bringing in other subcontractors to bid their projects only to use their proposals as a bargaining chip to lower the proposals of the subcontractors they intend to use. Such general contracting firms can sometimes motivate reliable subcontractors to decline the bidding invitation based on their reputation.

A fair bidding process
Unfortunately, there are general contractors that bid shop their subcontracts or practice other improprieties and sharp practices that would impair a fair bidding competition.

Aware of the unfair practices among general contractors, it is imperative to maintain great working relationships with reputable general contractors that provide subcontractors solid and fair opportunities to bid and win projects.

– Frank Hernandez, CEO of FH Builders Inc.

The competitive construction market is not the only problem a subcontractor faces to a win job. With limited resources and personnel, amid current projects needing servicing and staffing, the decision to bid a project must be advantageous to the subcontractor.

The probability to win the job and the time and money needed to bid the job are the two most crucial factors a subcontractor must weigh when invited to bid on a project.

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FH Builders provides Project Owners, Architects and GCs with Contractor Estimating and Management Services™ from reputable contractors in exchange for solid & fair opportunities to bid & win jobs. A win-win for all construction participants. To learn more please call Frank at 212-795-0570