5 ways you know you’re bidding on the right construction project

start bidding on only the best projects

Profit, profit, profit. You’ve probably heard it a million times – profit is the key to making your business successful. And it’s true. In the construction industry, making a profit can be a bit more difficult. With high overhead costs, increasing material prices, and paying for experienced labor. There may not be much left over to call profit.

It doesn’t have to be that way, though.

To begin seeing higher profits, you just have to start bidding on the right jobs. Here are some tips to help you know if a project is right for your business.

Invest in construction CRM technology: With construction CRM software like Thunderbolt Pipeline, you can track the project types you often work on. This will help you see what your niche and expertise is. Understanding what your hot jobs are and what makes your company the most money will help you the next time you are bidding on a project.
Is it the right time? Say you’ve used your CRM app to understand what type of project you want to bid on and an opportunity comes up. The only problem is all of your PMs and employees are busy on other jobs. In a case like that, you may want to avoid throwing your name in the hat. Doing so will only stretch you and your resources too thin. You definitely don’t want to dip into profits by hiring more help or accessing more tools.
Understand the location: Are you familiar with the area the project is in? If not, you may want to reevaluate submitting a bid. You don’t want to underbid or underestimate what the project will entail because you aren’t familiar with the surroundings. Plus, if it’s outside your usual service area, you have to make sure your team would be willing to travel and would likely have to pay for their travel expenses.
Don’t overestimate your abilities: It’s always good to aim high, but if your traditional job is $2M, taking on a $10M+ project is outside your means. You likely won’t have the resources to complete that job efficiently or in a timely manner. Stay away from the higher-budget jobs and stick to what you know!
Know your clients: Obviously a government project is significantly different than a residential one. Knowing not only who your best clients are, but who you will be working with ahead of time will let you know if the project is worth bidding on. If you traditionally work with government entities, you may want to avoid seeking out a residential job in case you aren’t prepared with the proper staff, materials, or resources.

So, start bidding on only the best projects and it won’t be long before business is booming!