Bidding for roofing Jobs: A Complete Guide

Introduction 

Bidding on a commercial roofing project is an art. A precise bid will differentiate you from your competition and increase how many jobs you land. But then how do you strike the balance between competitive pricing and getting the profit right without committing mistakes that can tear your bottom line? In this guide, we’ll discuss exactly how to put together safe, accurate bids on roofing jobs and give you commercial roofing contractors some expert tips to help you win big.

Understanding the Roofing Job Scope

Before considering numbers, you need to know the job inside out. TPO roofing systems, EPDM roofing systems, and built up roofing (BUR) are all commercial roofing jobs. They all need different materials, different skills, different timeframes. For instance, a BUR is installed with many layers of materials and lots more labor than, say, a TPO or metal roof installation.

There are commercial roofing projects that typically pose large, complex roofs that, of course, require thorough inspections. And certain things need accounting for example HVAC units, skylights or particularly roof flashing around parapets and chimneys. You can easily miss out on these details, and your estimates can quickly get in the gutter and your profit margins right along with them.

Example: Suppose you’re in Dallas, TX and are working on a 50,000 square foot warehouse. As the TPO roof is responsible for the changes in interior and exterior temperatures, the building owner requires that they have a new TPO roof with reflective coating. But this job will take time (a two week window), material (more than just a re-roof on a smaller retail store) and a skilled crew to accomplish.

Common Factors to Consider:

• Roof Size: The more material and labor that’s needed to build a roof, the more a roof costs.
• Roofing Material: Asphalt shingles, roof flashing, as well as premium materials such as slate all have different cost and labor requirements.
• Roof Complexity: Roofs with more than one level or skylights or chimneys require more labor and materials to be used for accurate bidding.

Step-by-Step Guide to Bidding Roofing Jobs

1. Measure the Roof Area 

Accurate measurement is key to an accurate bid. This is really important for commercial roofs. The closer you can get to your measurements the first time around, the fewer surprises you’ll have down the road. 

Here are the best ways to do that:

• Manual Measurement: It’s a traditional step, but it’s slow and prone to error, particularly on large, high-rise roofs.
• Drone Technology: Today, many roofing contractors are taking advantage of drones to take pictures of roofing conditions and dimensions. Drones provide accurate imagery, which allows the contractors to safely measure complex roofs from the ground itself. 
• Satellite Imagery Tools: You can use different Satellite imagery tools like EagleView and RoofSnap to calculate highly accurate elevations — even before you see the site. 

Example:

For example, if you’re bidding for a job with McElroy Metal Roofing for a 30,000-square-foot commercial building. To eliminate any human errors, you can use real-time measurements with the help of drone or satellite technologies.

2. Estimate Materials Cost

The second big factor is material costs after measurements are taken. You should know what is going on in the market with price fluctuations every day. For example, TPO roofing may run you $5.50 – $9.00 per square foot, and EPDM roofing is in the $4.00 -$8.00 per square foot range. 

When considering material, don’t forget:

• Vents or HVAC units where flashing comes up around the roof.
• Whether roof insulation meets building codes and insulates the roof.
• Also, roof shingles, if needed for repair jobs.

In fact, labor and material prices jumped 20% in 2021 because of supply chain disruptions. If material costs take an unexpected jump, you’ll want to be prepared to toss out your bid.

Tip: To calculate quickly you can use software like BLDON. This tool will save you hours and hours of manual calculations and make sure your pricing stays competitive.

3. Estimate Labor Costs

Commercial roof jobs can call for bigger crews and specialized labor than most residential projects. On average, labor accounts for approximately 60 percent of the total roof bid. To get accurate labor estimates:

• Estimate labor hours: A structure like a 50,000-square-foot commercial building with a TPO roof would have a crew of 8 with 10 days to complete the job.
• Consider complexity: Costs will increase on jobs with steep roofs, many elevations, and extensive flashing requiring more skilled labor.
• Factor in taxes and insurance: The danger of roofing, and high workers’ compensation rates, make the business a dangerous one. Don’t forget to include these in your total labor costs. 

Example: Assume for example that your labor crew costs you $55 per hour both in taxes and insurance. For a 40-hour week, you would charge $22,000 per 50,000 sq. ft project. Down the road on a large commercial roof replacement, your labor could reach up to $45,000 by the time it’s done.

4. Account for Overhead Costs 

Overhead costs are part of the job at every roofing company, between rent for an office and tools, trucks, and insurance. To know how to cover these, you calculate your overhead cost per hour and put that into every bid. Here’s how to do it:

For example: 

• Total up your business’s monthly overhead (such as $10,000 for rent, utilities, insurance, etc.).
• Determine how many labor hours your company puts in a month (say 800 hours).
• Add up all your total overhead and divide by your hours worked ($10,000 ÷ 800 = $12.50/hour).

This overhead rate needs to be added to your labor costs. This way you are not just paying for materials and labor, but for the fixed costs of doing business.

5. Add Your Profit Margin

For commercial roofing jobs profit margins vary but roughly 15-20% is a good target. The more accurate your bid, the easier it is to justify your markup. Be clear about how much you cost your clients and always leave a bit of profit on your bids.

Tip: Pricing should always be played strategically. Research your competitors, for example, what Tecta America charges for the same project, and set out a price for the work that is worth underbidding for. This way you don’t fall behind on your profit. 

6. Submit a Competitive Bid

It can be tempting to bid low if you think you will win the job, but this usually ends up backfiring. You want to be competitive but also make a profit. Make sure you aren’t pricing yourself out of jobs by checking out the local market rates. Your bid should be comprehensive, offering all costs in the hope of building trust with your potential client. 

How much do roofing company owners make? 

The income for roofing company owners can vary based on several factors:

• Industry & Market Conditions: Commercial roofing services have high demand in the market so that owners can make much more if the market is competitive. The average rooftop company owner makes between $50,000 and $200,000 annually, however a company can easily top half a million dollars in larger markets based on company size and contract scale.
• Challenges: Roofing work is seasonal work, labor is always in short supply, and material costs change. If labor becomes expensive or materials become scarce, your profit margins will decrease.
• Size of Business: Small roofing companies generally don’t earn as much as large, well established companies that work on commercial work. Profits might be 5 – 10% for a small business and much higher for larger operations.
• Project Type: Commercial projects return a profit that is higher than residential work. For example, commercial jobs often make net 50% more profit of replacements than residential work.
• Owner Involvement: Owners who put more effort into operations tend to use fewer resources (especially in the staff, management, and overhead costs) and, hence, tend to make more money overall.

Roofing company owners can effectively scale their income based on a combination of three dynamics: market demand, company size, and how operations are managed.

Factors that Influence Bidding on Roofing Jobs

1. Local Climate and Roof Materials

Roofing material needs vary from one climate to the next. For example, roofing done in areas with colder climate conditions needs more durable materials like metal or thicker shingles, while warmer climate conditions may need reflective or lighter-colored materials​. 

2. Roof Flashing and Shingles

Don’t dismiss simple details, like roof flashing which is supposed to keep water out of joints. Roof shingles come in a variety of flashing and styles, as well as materials, all at different prices. But in the places where the roof meets the walls or a chimney flashing is needed, you’ll see shingles used more frequently. Moreover, The price is dependent on the quality and kind (asphalt, metal, or wood).

Roof Shingles Pro Tip: For most residential jobs, the most affordable of these is the asphalt shingle and they would always be the ‘go to’. While premium shingles like architecture or laminated shingles are a bit more durable, they come at a higher price.

3. Use Estimation Software

Preparing your bids can be a game changer with roof-specific estimation tools. These tools calculate everything, from the area to the pitch and materials necessary. A labor estimator or full-blown construction estimating software can take your bidding process to a new level of accuracy. Estimation software could give the difference between winning your bids or losing to your competitors. Let’s break down why such a tool is a must-have and how it can help you to put together more accurate, profitable roofing bids.

>> Automated calculations for precision. 

The days of manually calculating every element of the roofing job are gone. Using construction estimation software allows you to take out those tedious measurements, and work out material quantities and labor costs. With the software, the guesswork is gone — your estimates are as precise as possible.

With new AI feature-enabled estimating software, you can now automatically measure and markup your construction roofing plans and blueprints. By defining access levels, you can ensure that all your team members have access to the measured and marked-up construction plans and blueprints, so they understand the project specifications and requirements. In short, with a good estimation tool, you stay way ahead of many of your competitors in the roofing field.

>> Real-time material pricing integration

Real-time integration with suppliers is a big deal in roofing estimating software. It means you’ll be able to see the latest prices on roofing materials such as shingles, flashing, and underlayment all on the app. There’s no more guesswork or guessing at outdated pricing that could eat away at your profit margin.

With this feature, your bids are always priced based on the current market. Your cost of roof shingles themselves will increase if there are supply shortages, and so will your bid. It keeps your bids competitive while keeping your profit healthy.

>> Labor and overhead tracking 

Manually tracking labor costs and overhead can be a nightmare in being able to get it right. The estimation software makes this easier by taking your hourly wage, taxes, and overhead costs as input. Next, the software applies these rates to every job based on labor hours, so you get paid for each dollar spent.

In addition, this system prevents you from making the mistake of overspending labor costs. One example is that if a job requires a complex installation such as a roof flashing around a tricky corner, the labor hours are adjusted for the increased time required. This makes sure you’re charging enough for labor, but not too much, i.e. not inflating your bid beyond reason.

Why BLDON? 

BLDON provides a whole suite of services that will help you manage and grow your roofing company to the next level. BLDON can help whether you are a small business struggling with a huge amount of roofing contracts or a larger business trying to streamline operations.

Here’s why BLDON stands out:

• User-Friendly Software: BLDON provides an unbeatable construction and roofing business platform that is easy to use, don’t need to be a tech whizz to get the best from it.
• All-in-One Solution: BLDON takes care of all aspects of your work, from project management to bid tracking. It means no more juggling between multiple apps or paperwork.
• Real-Time Updates: Keep current with project status, material costs, and labor tracking, so you’re never guessing with real-time updates and accurate winning bids again.
• 24/7 Support: BLDON offers top-notch customer service so that you have the help you require when you need it, helping make your job easier and your company more efficient.

BLDON isn’t just a tool; we’re your partner to success. We can simplify your bidding process, increase accuracy, and put you at the top of the roofer line with BLDON’s powerful features. 

Conclusion 

Just tossing numbers together and placing those bids is not what accurate bidding on roofing jobs is about. It is a thoughtful and strategic approach where material costs, labor, overhead, and profit margins are brought into balance, as well as weather, roof condition, and market variables. With this in mind, and stocked with technology such as estimation software, you now have everything you need to develop precise, competitive bids that can help you to win more jobs and grow your roofing business.

The roofing industry is very competitive, but with preplanning, proper numbers, and the right tools in your toolbelt you will be able to stand out from the competition.

FAQs

Q: What can I do to improve my bidding for a roofing job?

A: If you want to secure a competitive bid, your bid should include all potential costs (materials, labor, and overhead) and be precise. You also want to use up-to-date market pricing and if possible, leverage estimation software to be more accurate.

Q: When bidding on a roofing job, what factors should I be concerned about?

A: Include such factors as roof size, materials costs, labor, local climate, the complexity of the job, potential repairs (like roof flashing or replacing roof shingles), and overhead costs (insurance and permits). This covers all aspects of the job and by including these you are ensuring your bid covers everything.

Q: Will using estimation software enhance my bid accuracy?

A: Absolutely! Many manual processes such as roof dimension calculation, updating material costs, and accounting labor are automated. This minimizes human error and improves accuracy with estimation software.