Masonry Magazine February 2004 Page. 38
BIDDING
sound business. If it happens too much, that clearly signals that something is wrong and that a thorough re-examination of processes is in order.
Your Goals How Badly Do You Want To:
Work with this new owner. Sometimes, it's just good business to get your foot in the door. Yes, I know some people call it "low-balling," but let's face it, it's certainly no secret, it's done all the time and sometimes it works. The danger of course is that if it's only a one-time affair, you've only given a job away with little margin.
Work with this new architect. Particularly in commercial, A/E firms control the front end of many meaty construction projects and therefore it behooves the contractor to get in their good graces. In many locales, there are only one or two major architectural players who handle the majority of work and they keep a "preferred" bidders list that's handed out to the owners who bring them projects.
Beat a competitor who has taken the last four jobs away from you (admit it... you've done it!).
Do you want to increase sales volume, even if it may mean a decrease in profit? Depending on your business philosophy, there are some contractors who strive to reach a certain sales plateau before focusing on profit and processes alone. I find this a bit backwards myself, but I've known many contractors over the years who've taken just such an approach. With some it's worked tremendously, while others are out of business.
Closing
NOW THIS IS just a sampling and there's certainly more, but I think you get the picture. Clearly there's more to bidding than simply adding up numbers. We're in a service industry that is arguably more social than it is technical. Human intuitiveness and life experience is paramount to success and often spells the difference between being a winner and being an also-ran. I don't know about you, but for some reason, that's comforting. With the advent of computers, powerful software programs, and automation that does everything but dress you in the morning, it's nice to know that we puny humans still play some role in this whole thing. Good luck!
With over 25 years in construction, primarily as an estimator and project manager, Steve Saucerman now writes, speaks and consults for the construction industry. He also teaches part-time in the Building Construction Technology division for Rock Valley College in Rockford, Ill. He has published two books and over 350 articles to date and his writing is featured in construction periodicals all over the world.
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