Looking to level up your multifamily construction bidding chops?
Knowing how to find new multifamily construction projects that are out to bid – and knowing how to secure the bids you want – is one of the biggest challenges you’ll face as a building product manufacturer.
Getting the jobs that will move your company forward means:
• Understanding the bid process
• Knowing how to find projects to bid
• Choosing the right projects to bid
• Putting your best bid forward
Read on to find our tips for finding and securing multifamily construction projects for your company.
How the bidding process works for multifamily construction
The bidding process begins with bid solicitation, which is often referred to as a request for proposal (RFP).
The project owner, manager or general contractor will release plans of the project and ask contractors whose services align with the project to submit their bids.
RFPs generally have specific guidelines for bids and usually call for project pricing, timeline, use of subcontractors, deliverables and payment schedule.
The RFP will have a bid submission deadline and will outline the project type and project needs.
The bids will be reviewed by the people in charge of the project and choose their top bidders – sometimes this is done in two steps, with a qualifying bid followed by a more detailed bid.
Once the contractor is chosen for the project, the contractor and project owner will draw up the final legal contract, and the contractor will deliver on the project.
How to find projects to bid
Often, the hardest part for contractors is knowing how to find multifamily projects that are out to bid.
While BuildCentral is not a bidding service per se, at BuildCentral, we can plug you into multifamily projects of interest across the country in the early planning stages, which means you can impact projects before they go to bid.
This saves you from the “chase-a-bid” rat race and helps you develop sales and marketing systems you can build upon.
How to know which projects to bid
Bidding is a time-consuming process. That’s one reason you want to do all you can to increase your success rates in earning the projects you bid. The projects you bid should fit within your goals for company growth, as well as with company capabilities.
As you strategize your company growth, you should create a list of criteria for your ideal project type.
When projects come up that you might be interested in bidding, weigh them against your project criteria. Considerations include project type, project size, owner reputation, delivery method, location, start date and timeline.
Of course, to know which projects fit your criteria, you will need to know as much as you can about the project and about the company.
Having as much information as possible will help you determine whether the project fits within your criteria and is worth bidding, and it will give you all of the specifications you need as you go through the bidding process.
How to earn a multifamily construction bid
While choosing the right projects to bid will increase your chances of earning the multifamily construction bids you want, there are some other things you should consider as you create your bid to increase your chances of success. They include:
• Meeting the bid deadline. Nearly all RFPs have strict deadlines for bid submission. Missing this deadline means missing out on the project award. Be sure to keep careful tract of the bid deadlines for the multifamily constructions projects you want to bid.
• Following the RFP specifications. Make sure your bid includes all of the elements required by the RFP. The RFP will outline which elements the bid should include, such as project costs, the project timeline, deliverables and payment schedule.
• Understanding the project. Before you bid, make sure you understand the project completely. You want to be sure that you are providing the most accurate pricing possible, and you want to be sure that you are equipped to deliver the project within the prescribed timeline.
• Providing accurate cost and time elements. Don’t confuse your bid with its less formal counterpart, the estimate. Estimates are preliminary and subject to change upon further examination of project criteria. Bids are considered the firm parameters for the project.
Your RFP will be the starting point for the project contract, the contract will include your bid cost and timeline. You will need to consider the cost of materials, the amount and cost of labor, any subcontractors and any special equipment you will need to formulate an accurate bid.
• Knowing the priorities of the person awarding the project. Different developers will have different parameters for awarding multifamily construction bids. In many cases, project clients – especially government clients – have policies that require them to choose the lowest bids. If your bid is too high, it will be automatically ruled out.
Other project managers, however, might be willing to pay a higher price for specialized skills, faster delivery or high-quality materials. You will need to know what your bid will be judged so you can align it accordingly.
Securing multifamily construction bids isn’t an easy prospect, but by understanding the right process, choosing the right bids and creating the best bids possible, you can land multifamily construction bids that will move your company forward.
How can I become better at construction bids?
It is possible to become better at bidding to earn more of the multifamily construction projects bids you want for your company.
First, select the right projects for your company. Know what your ideal project looks for, and look for projects that align most closely with that.
When you find the right projects, do as much research as possible so you understand the project fully, and know who will be making the bid decision and what their criteria are – some project owners will want the cheapest possible bid, while others will pay more for special services, more experiences or higher quality materials.
Who can tell me the new multifamily construction projects out for bid?
Bidding on construction projects won’t go away anytime soon, but at BuildCentral, we think that there’s a better way–our MultiFamilyData construction product.
Want to circumvent the bidding process altogether?
We’re not a bidding service, but because we specialize in early planning stage construction data, you’ll find out about the best jobs before they go to bid.
Even better, with the provided contact details you’ll even know who to call.
Warm up those cold calls easily with background information on about any company you call into, with historical details on relationships, personnel and project history.
And with real-time research ranging from senior and student housing, to condos, you’re covered regardless of your speciality.
Get a 7 day free trial at MultiFamilyData.com or by calling 866-316-5300.
Multifamily construction bid FAQs
What is a construction bid?
A construction bid is your opportunity to present a project manager or general contractor with your strategy and your cost for work on their building project.
A bid is more firm than an estimate; your bid, if selected, will be used to outline the cost, timeline, deliverables and process for the final project contract.
When creating a bid for a multifamily construction project, you will need to consider material cost, labor costs, overhead, special equipment and profit margin.
What is the construction bidding process like?
The bidding process begins with bid solicitation, often referred to as a Request for Proposal (RFP).
Project managers, developers or designers will publicize the details of their project and ask contractors to provide details bids that include cost, timeframe, deliverables, payment schedule and more.
Once bids are received, they will be reviewed and awarded by the project owner or manager.
A contract is then draw up, and the project is delivered.