Accepting Or Denying A Bid Request
We've covered how prospective clients can search for a contractor and how to submit a bid so now it's time for us to let you know how we decide who to work with.
Metro Nashville has a population of about 1,272,000 with an estimated 82 people moving into the city each day.
With that many folks in town comes A LOT of requests for bids on construction projects. There's no feasible way any one company could offer legitimate, accurate bids for each request. This is why we carefully review each inquiry and see if it will fit well within the scope of the current project calendar we have in progress. This brings us to our first point:
1. Bids require multiple steps and communication with several other subcontractors, builders, suppliers and architects.
Let's say we've reviewed and accepted your request for a bid. Now we have to study your plans. Which cabinets, flooring, fixtures, countertops and appliances have you chosen? Will there be a lot of electrical or plumbing work? Framing and drywall? From here, we have to contact each supplier and installer to see what their costs are and what their availability is.
The subcontractors will also have the option to choose whether to accept the request for a bid and submit their own to the General Contractor or pass. Once all of these are ready and returned to us, we carefully review each one to make sure it will fit within the preferred timeline before we send the compilation back to you for your review.
This process can take days (and even weeks) to ensure you're getting the most accurate and contract-ready proposal. It's also rather time-consuming and costly for the GC, which brings us to our next point:
2. Pre-pandemic, material costs were fairly stable. Nowadays, a single 2'x4'x8' could cost $7 on Friday and $16 on Monday.
With current material cost inflation and shortages, a bid is only good for a short time before the budget will need to be adjusted to keep in line with actual, fluctuating costs.
When deciding which clients to work with we not only look at the type job, location, and size, we also have to evaluate if the client is ready for construction or is "window shopping" for a future date.
Estimates are a terrific idea for prospective clients in the browsing phase because they're fast, free and can give you a great starting point to know what to expect. Estimates are also an excellent tool so that you can get to know potential contractors before signing a deal. On the other hand, bids are better suited for those who are ready to commit to breaking ground.
3. Does your project fit well with our current projects?
This has less to do with appearances and more to do with location and availability of teams best suited to the type work you're requesting to have done.
If your preferred GC is doing a lot of commercial work on the north side of town and your residential project is 45 miles away, it probably isn't the best fit at the current time. In this scenario, the mileage is less of a concern as it is the teams. If we have the option to rotate teams through different stages of multiple projects it ensures a more seamless construction project for each of our clients.
Sometimes, we have several mixed-type construction projects going at once but since they're all located within a certain radius, we're still able to successfully rotate subs and other workers. This provides consistency for our employees as well as yourself.
4. Are we the best suited to the type work you're requesting?
We started as a small painting company and through the years we have evolved from handyman work all the way to large commercial and residential construction.
Do we still do "handyman" type jobs? Absolutely! Though, they're usually for past clients or clients we're serving in another area on a larger-scale project. The reason for this is that most of these jobs don't require a GC and to do them could take away valuable attention from existing clients with more complex builds.
Many of these projects can be done more efficiently and for a better bottom-line by directly hiring the proper outfit or sub. We are always more than happy to offer recommendations to reputable businesses and people that specialize in this type of work.
5. How many other contractors are bidding on the same project?
This pertains mostly to prospective clients who submit bid requests through agencies online like Angi/ Home Advisor. While we sometimes will use these, we typically stay away from them. The reason being that there are so many people jockeying for the same part, we don't feel the desire to compromise quality and integrity to "win" a bid. To us, that wouldn't be staying true to our core values and most definitely wouldn't be "winning."
As I've mentioned before, the bidding process can be very involved and multi-faceted. We could easily throw out a low bid to appease a client, but that wouldn't be conducive to completing a fantastic project. We can, however, offer alternatives to bring your final cost down without sacrificing things you absolutely love. There are always ways to save money while maintaining high standards. There aren't as many feasible ways to correct cheap work.
It is our hope that by following us you will gain a better understanding of who we are, and what to expect from the construction industry as a whole. As always, full transparency, education, and pride in a job well done is our goal.
Are ready to make your project a reality? If so, call us today at 615-642-4477 or visit www.allprocms.com to schedule your free estimate!
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