ConstructConnect Blog

Whether you’re a roofing or concrete contractor, your bidding process likely involves lots of moving parts. While you may already be using a digital takeoff tool to eliminate paper blueprints, your estimating workflow may still include a mixed bag of supplier and vendor spreadsheets. Inevitably, this can make bid day a mad scramble—especially if you’re juggling last-minute addenda and change orders.   

It’s Bid Day and do you know how accurate your numbers are? Construction industry insider George Hedley estimates 80% of construction owners don’t know the true cost of doing business. Even if you have a backlog of work, bidding more does not always translate into winning the right projects—especially if you’re using bad numbers. 

Are you still performing your takeoffs manually? If so, you probably spend more time shuffling through papers and plans than putting together your estimate and chances are you aren’t alone. According to McKinsey Global Institute’s Industry Digitization Index, the construction industry is one of the least digitized, beating out agriculture to avoid being at the bottom of the list.

Estimating is one of the most difficult jobs in construction. It is also one of the most important. Profits are typically won or lost based on how accurate your estimates are and how closely they match up to your final project costs.

Here’s the scenario, you’ve spent the past two weeks studying the plans and specifications for a commercial construction project. You’ve attended the mandatory pre-bid conference, done all your takeoffs, gotten all your subcontractor and supplier pricing lined up and you’ve checked and double-checked your figures and finally, you seal everything up to be submitted. The bid opening comes around and, good news, you’re the apparent low bidder. The bad news is you’re the apparent low bidder and the second lowest bidder’s amount is 30% higher than your bid. Clearly, mistakes were made. Are you going to be on the hook for providing the work for the erroneously submitted bid amount? Will you be allowed to withdraw your bid or will you have to forfeit your bid bond? What recourse do you have?