Introduction
Wondering how to place a bid using construction bidding software? You don’t need to bust your buns for that. Just follow this simple 3-part process to place your bids like a pro:
- See that all your materials are in place.
- Estimate the cost of the project for accurate bids.
- Send out the bid to your client.
How to place a bid – Part 1: See that all your materials are in place
A. Use the directory to check for available materials
Before you get into the nitty-gritty of how to place a bid, make sure you have all your materials in place.Â
With Construction Estimation software you get to use the directory features. Use this feature to toggle through all the available materials. You can also check for material details and the vendors supplying each item.Â
B. Compare the prices from different vendors
It is very important to compare prices before buying a product, isn’t it? It is the same with construction materials.
Again, with a construction bidding tool, you can easily gauge all the vendors supplying a specific inventory. This way you can compare the cost of the materials you want to purchase. You can also check the lead time of the items you have ordered.Â
C. Use the pre-built assemblies feature
What are pre-built assemblies? Pre-built assemblies contain commonly used materials and components all grouped together.
As you have the required materials grouped together, you can directly jump to the estimation process. Remember to pull out these assemblies when you perform takeoffs.
D. Calculate labor costs, installation time
With a good Construction bidding tool, you can:
1) Calculate the cost of materials
2) Estimate the labor costs of your projects.Â
You can also calculate the installation time (estimate how much time will go working on the project)
Learn more: RFI Vs RFQ Vs RFP
E. VE Options
The world runs on discovery and innovation. Why not the construction world? The VE options feature is a million-dollar feature, as it gives you the freedom to explore alternative materials, methods, or designs. You can choose the materials that offer quality and performance at optimum costs.
This means a successful project at the lowest cost possible.
With this, you’re all set to move to the next phase – The Estimation phase.Â
How to place a bid – Part 2: Estimate the cost of the project for accurate bids.
A. Create an estimate (first step to place a bid)
Done gathering material info?
Now it’s time to create an estimate:
1) Give the estimate a name.
2) Mention the Opportunity you are creating the estimate for.
3) Assign the estimate to a team member.
4) Add the start and end dates.
5) You can also add the bidding date so that you’re notified to place the bid.
6) Finally, mention the Workflow Status of the estimate to track the process.
With BLDON, you can also fetch the estimated information from your Salesforce account, as it is integrated with the software.
B. Upload/View your plans
You can upload and view your plans using the Construction Bidding tool. View your plan and perform material takeoffs with just a few clicks. This is where you can pull out the Assemblies (you can always make changes to the items mentioned in the assemblies). Perform your takeoffs to understand the exact quantity of materials required for the project.  Â
What are material takeoffs?
Material takeoffs aka quantity takeoffs or simply takeoffs mean listing and measuring all the materials required to complete a construction project. This process mainly includes:
Detailed Measurement: Quantifying the specific amount of each material needed (e.g., cubic yards of concrete, linear feet of lumber, number of bricks).
Categorization: Organizing the materials by type, size, and specification.
Cost Estimation: Using the quantities determined to estimate the total cost for the materials, often factoring in waste, delivery, and other relevant costs.
Planning and Scheduling: Providing essential data for project planning and scheduling by indicating the material requirements at different stages of the construction process.
D. Use markups
Once you’ve calculated the amount of material required on a project and the cost of materials. Add markups so that the bid is ready to be submitted.Â
What are markups?
In construction, markups refer to the percentage added to the cost of materials, labor, and other expenses to cover overhead and profit. This additional charge ensures that the contractor can cover business expenses and generate profit from the project. Markups are crucial for the financial health of a construction business and are typically included in the final bid presented to the client.
Key aspects of markups in construction include:
Overhead Costs: These are the indirect costs associated with running the business, such as office rent, utilities, salaries for administrative staff, insurance, and other operational expenses. The markup helps cover these ongoing expenses.Profit
Margin: The markup includes a percentage that ensures the contractor earns a profit on the project. This is essential for the sustainability and growth of the business.
Contingency: Sometimes, a portion of the markup is allocated as a contingency to cover unexpected costs or risks that might arise during the project.
Calculation: Markups are usually calculated as a percentage of the direct costs (materials, labor, and equipment). For example, if the direct costs of a project are $100,000 and the contractor applies a 20% markup, the total price quoted to the client would be $120,000.
E. Go to the final estimate page (just like your calculator or Excel sheet – but better)
Brace yourself, you’re almost there!
Now go to the final estimate page. Tons of numbers, aren’t there? Don’t worry, let us guide you. This stage offers you a snapshot of the assemblies, materials, labor costs, and every other detail that you’ve filled in or calculated so far. These are customizable fields. You can add or delete items and change or edit calculation formulas just like you would in an Excel sheet. Review your estimation and make the necessary changes.
How to place a bid – Part 3: Send out the bid to your client.
A. Prepare your quote (ready-made, editable template)
So you’ve successfully done all the calculations. Now, you’re ready to prepare the quote. BLDON offers ready-made, easy-to-use, editable templates. You can upload your logo, and voilà , all the details you want on your quote appear right in front of you.
B. Download it as a PDF or send it directly (since it is integrated with Microsoft 365)
You can either download your quote in a PDF format or send it directly through the software. Since it comes with Microsoft 365 integration.Â
