What is a Construction Bidding Tool and how does it work? 

Introduction

Today’s construction world is all about efficiency. Whether you’re working on a large commercial, high-rise, or a smaller specialty project, you must keep your bids in order and competitive. In this case, a Construction Bidding Tool becomes your digital tool to help you out. These tools help reduce errors and manual work which makes it easier for contractors to create and submit bids, and better manage bids overall.

The construction bidding tool automates the entire bidding process for general contractors (GC) and specialty contractors (SC) to easily input project data, calculate costs, and compare bids. That’s just the tip of the iceberg though, let’s drill down and talk about how they work and how important they are.

What is a Construction Bidding Tool?

To put it simply, a construction bidding tool is software that helps a contractor prepare, manage, and submit bids for a construction project. This isn’t just a fancy spreadsheet—it’s a fully automated platform that does much of the hard work for you, from estimating costs to completing paperwork. With a bidding tool, you can:

• Calculate complex material, labor, and time calculations.
• Create easy-to-submit and compare professional bids.
• Reduces human error in calculations, which can make or break a project.

View it as the one-stop shop you need to get your bidding projects done efficiently and accurately. Using a bidding tool means you spend less time on repetitive manual tasks and more time focusing on what matters i.e. on getting contracts and delivering great projects.

If you are thinking to use a Construction Bidding tool make sure to read about the top features of a Construction Bid Management Tool.

Key features of a good Construction Bidding Tool.

The market is flooded with bidding tools, but not all are as efficient as you would want them to be. And that is why we’ll list out some important features so that you can make an informed choice when it comes to construction bidding tools. Let’s dive into some of the key features that set great tools apart: 

1. Real-Time Collaboration for Seamless Communication 

When construction teams are spread across different locations, real-time collaboration is a necessity. The right tool will provide information in real-time to contractors, subcontractors, and clients. It will also give you the ability to update information in real time, so everyone knows what’s going on. It removes miscommunications, avoids expensive delays, and leads to projects going smoother. 

2. Centralized Document Management 

Construction paperwork tends to pile up. The best construction bidding tool will provide you with a single central document management system. This way you can store and access all important documents like blueprints and contracts without flipping through endless folders. BDLON’s Document Management feature is exactly what you need to ensure you never miss that crucial document.

3. Cost Estimation and Advanced Takeoffs

Getting accurate cost estimations can make or break a bid. Using automated takeoff tools, you’ll be able to easily create estimates that are accurate of materials and labor, so you can submit a competitive bid that won’t cripple your profit margins. These estimations thereof pull real-time data, meaning you’re always working with actual numbers, and hence always in the front in competition with others. 

4. Automation for Repetitive Tasks 

Why do the same tasks again and again when you can just automate it? You can easily do it with a Bidding tool that has automation features including filling forms, calculating pricing, and comparing bidding. It frees up your team to concentrate on strategy and away from busy work. BDLON’s Construction Bid Automation tools are just the type to simplify these tedious processes.

5. Reporting and Analytics

Analytics are one of the hidden gems of construction bidding tools. A good tool is not just a tool to help you submit bids—they are tool to help you understand if you will win or lose a project. Tracking performance lets you analyze trends, improve bidding strategy, and make data-driven decisions.

For more amazing insights into analytics, read this article about reporting and analytics in construction.

What are the different types of Contractor Bidding Tools? 

1. General Contractor Bidding Tools 

Large-scale projects need to be managed by a General Contractor who seeks bids from various subcontractors. These submissions are managed with GC bidding tools where contractors can compare bids and select the best team for the project.

2. Subcontractor Bidding Tools 

In order for subcontractors (SCs), to generate their bids for GCs, SCs need specialized tools. Most of these tools, tend to focus more on the cost estimation for some services, so the bids used are balanced and include all the overhead.

3. Cloud-Based Bidding Tools 

As construction projects and teams are spread around various geographies, cloud-based tools provide flexibility and real-time collaboration. These tools make it possible for contractors to view and update bids anywhere at any time for seamless communication and instant changes. 

For more about cloud-based solutions, check out BDLON’s Cloud-Based Bid Management.

How is the Construction Bidding tool useful to General & Specialty Contractors? 

The construction bidding software is useful whether you’re a general contractor or a specialty contractor as it helps you reduce errors and streamline your process. Here’s how each group benefits:

For General Contractors: 

• Better Bid Management: It is possible to make multiple bids from subcontractors and you can monitor and control them so as to always pick the very best option for your project.
• Improved Cost Control: An accurate cost estimate of labor, materials, and time reduces your risk of underbidding as well as protects your profit margins.
• Faster Turnaround: Templates and automation submit go way faster so you don’t have to create bids from scratch every time.

For Specialty Contractors: 

• Accurate Estimates: This allows specialty contractors to compete for jobs by bidding precisely for all material, labor, and overhead costs.
• Increase Win Rates: By submitting accurate and competitive bids, specialty contractors can win more contracts with less hassle.

Go to BDLON’s Specialty Contractor Solutions to see how this applies to your specific projects.

How to pick the right Construction bidding tool?

Ease of Use: 

Even the most well-thought-out construction bidding tool won’t help if it isn’t easy to use. Typically, contractors work in high-stress environments where work time is tight, so ease of use is required.

User Friendly Dashboards and Navigation

The first thing to do is to check that the dashboard is intuitive. Such a UI creates an ease of navigation for users by using easy access to different sections such as bidding submissions, project details, and cost estimation tools. A cluttery or too many complex UIs can become annoying for the user, slow down productivity, as well as diminish efficiency. Therefore, Only look for tools that focus on simplicity and functionality so both tech and no tech – people alike can use them comfortably.

Customization and Flexibility

Different construction company means different needs and the tool should be customized for at least some level. Customizing templates, dashboards, and workflows can have a huge impact on how well the tool fits into that daily process. A good construction bidding tool should help you to add custom fields, reports, and workflows to work the way you want them to.

For instance, The Construction Bidding Tool of BLDON has an easy-to-use intuitive interface equipped with drag-and-drop features to facilitate the creation of professional bid proposals in the least possible time.

Integration Capabilities: 

Your construction bidding tool will have to interface with the other systems your company has in place. The integration of your workload with other software, such as project management platforms, accounting software, and customer relationship management (CRM) tools will not only be seamless but also increase the smoothness of your workflow. 

The Importance of API Compatibility

Look for a construction bidding tool option that is open Application Programming Interface (API), which means that it can connect to third-party platforms. You should be able to pull in other software systems, such as BLDON for accounting or project management, automatically and take out the logging part. This also reduces the risk of human miscalculating errors. API compatibility also means that you can integrate into your bidding system in a way that is compatible with future integrations. This means that even as your business begins to grow and new tools come to the market, your bidding system can keep up.

Advantages of an Integrated Workflow

An integrated bidding tool or workflow is an integrated workflow that combines project estimates, materials tracking, and financial management in one. This will give you a real-time view of what’s happening with your project from the beginning (bids) all the way through to the end (completion). This seamless integration helps eliminate data silos and a seamless flow of information between departments to the contractors working on multiple projects at once.

If you want to read more about the advantages of integrated software, take a look at BLDON’s blog on construction software integration.

Support and Training Services: 

A construction bidding tool may seem intuitive, but your team will still require some level of training and support to get the most out of it. To have a smooth onboarding experience as well as future success, you should take into consideration the level of customer support and training offered by the software provider.

Importance of Onboarding Support Assignment

When choosing a construction bidding tool, don’t forget to consider the onboarding services. There are software vendors that provide much more than that, with video tutorials, live webinars, hands-on training sessions, and more. A good onboarding process helps your team start quickly, which means no costly delays in feeling up to speed on the new system. Take a look at the extent of the onboarding program and whether or not it’s meant for your type of business and its level of complexity.

Ongoing Support and Upgrades

That’s also very important — ongoing support you’re going to get after the initial implementation. Make sure that customer support is available 24 hours a day, support from a responsive Helpdesk, or that account managers take care of things related to technical questions, software updates, and new feature rollouts. Additionally, ensure that the vendor offers system updates and upgrades regularly to respond to technological advancement and the industry’s evolving needs.

In order to facilitate a smooth adoption of their bidding solutions for customers and customer teams, BLDON provides dedicated customer support.

How can you make the best use of a construction bidding tool?

Build Networks of Subcontractors

A construction bidding tool has a powerful ability to bring you in touch with a long list of subcontractors. If they work with lots of mutually dependent, skilled subcontractors, general contractors have stronger bids because they can offer more competitive pricing and, of course, a better standard of work.

Bidding Tool: Building Networks

For construction bidding platforms, you will find that they often maintain a database of vetted subcontractors established, or they do offer a marketplace where you can post a job and get quotes from multiple subcontractors. This feature allows you to really expand your network and find workers that specially fit your project needs. By helping you save time you don’t need to spend your time manually going around the search for contractors.

A strong network of subcontractors also means that you can be more flexible in pricing your bid. Receiving multiple quotes enables you to select the best price-quality balance between the subcontractors to create a better competitive bid.

Pro Tip: Update the list of subcontractors in your bidding tool regularly. The more accurate your list is, the easier it will be to send requests for proposals to potential bidders. This will help ensure that the bids you receive align with your project scope. With a tool like BLDON’s Construction Bidding Tool, you can easily manage subcontractor data.

Monitor the Progress of Construction Sites 

Once the bid is won, the next challenge is to ensure the project stays on time and budget. Now, modern bidding tools not only provide project management tools for the bidding process but also features that allow you to track progress with your construction sites. 

Track Real-Time Updates

Many of today’s bidding tools now work with project management software to keep suppliers and clients up to date about construction progress in real-time. For monitoring key milestones, labor costs, material usage, and timelines this is especially useful. This data allows contractors to make decisions on how to allocate resources and decide whether they need to modify to stay on schedule.

Combining bidding and project management tools allows for a straight line from securing the contract to getting the work done. If you track the site progress directly from the bidding tool you cut down on any chances of miscommunication and refine your project to your initial bid.

Managing Change Orders

A construction site is dynamic, which means change orders are usually not unusual. A good construction bidding tool will also help manage and price change orders. The bidding tool can consistently update the estimates and timelines as site conditions change, such as material shortages, or unexpected delays. Doing so will let you inform the client immediately and be able to charge enough to ensure your profitability.

Read more about the impact of change order management on BLDON’s blog about project efficiency.

Use Historical Data to Optimize Cost Estimation 

When effectively using a construction bidding tool, you have to rely on its ability to pull from historical data. It helps you to create accurate bids, as you know the prices of similar previous project’s costs, labor expenses, and material pricing trends.

Use Past Projects to Guide Future Bids.

Contractors who make the most money use historical data to create future bids. A construction bidding tool should give you access to your previous bids (the ones you lost and the ones you won). Looking at these will help you figure out why some bids were successful and where you should make changes down the road.

Many tools have cost libraries with historical data available regarding materials, labor, and equipment. With this data, you can make more accurate estimates and know you are not over or undercharging your services.

A feature like BLDON’s integrated cost database can, for instance, serve as a great starting point for estimating the costs of new projects without having to begin from scratch.

Improve Communication and Collaboration Among Teams

Sitting down with a construction bidding tool and submitting proposals may seem easy but for effective use of this tool, we need to make sure your team is on the same page with bid strategies, project scopes, and allocation of resources.

Collaboration Platform

Now most modern bidding tools include collaboration, because portions of the bid are assigned to different departments or team members to work on, all at once. For example, the project manager, the estimator, and the procurement team can all provide their inputs into the final bid to make sure the final bid covers all angles of the project. Centralized collaboration of this type reduces the chance of information silos, where key information is sequestered in individual departments within an enterprise.

Mobile Access for On-Site Teams 

One key benefit you will find in many bidding tools is the fact that they can all be accessed remotely with your mobile devices. It allows for an on-site team to be able to upload progress reports, photos, and other important updates into the system so those in the office always know what’s happening in real time. This also removes room for error and any delays between the office and the field team.

Additionally, you can integrate on-site data with your bidding tool to better anticipate future projects and adjust your bids accordingly.

Regular Bid Reviews and Analysis

The work does not end once a bid has been submitted. The most effective way to benefit from a construction bidding tool is to use it for post-bid analysis.

Review Your Bid Performance

Compare your bid to how the project ended up being. Was the project profitable? Did the lines match up to the original estimate? Was the cost estimate significantly different than the actual expenses? You can track this data through your bidding tool and adjust it to place different bids in the future.

Areas for improvement.

There are some simple steps you can take on a regular basis to catch up on any inefficiencies with your bidding strategy. Maybe you’re failing to budget for labor costs all the time or don’t fully account for some materials. You’ll get valuable insights to refine your process and make money on your bids. 

For more tips on how to improve your bidding strategy over time, read BLDON’s resources.

Bidding Mistakes to avoid in bidding for Construction projects?

1. Underestimating Project Costs

Underestimating the real cost of your project is one of the most pernicious errors possible. More often than not, it occurs because people overlook key expenses or don’t estimate the quantity of materials correctly. 

Key Ways to Avoid:

• Detailed cost analysis: No expense shall be omitted, even all labor, materials, equipment, and contingencies.
• Factor in delays: Set aside money for things that might be delayed because of weather, supply chain, and all kinds of unforeseen situations.
• Use bidding software: BLDon’s Construction Bidding Tools can automate and calculate costs more precisely so that your bids are accurate. 

2. Rushing the Bidding Process

The bid preparation phase is an easy phase to speed through in a fast-paced industry. However, the haste can result in computation errors, omission of project details, and under various assessments.

How to Prevent Rushed Bids:

• Thorough review of project documents: Make sure to go over each element of the RFP.
• Double-check everything: Make certain calculations and necessary paperwork are complete before submission.
• Use a bid process flowchart: Use a process that is structured from opportunity recognition to post-submission analysis​.

3. Ignoring the Competition

It’s important to pay attention to your own bid, but you also need to know about your competition. This can help you differentiate yourself vs. other contractors offering the same service.

Key Tips to Stay Competitive:

• Study your competitors: Be aware of their strengths and their weaknesses.
• Offer unique value propositions: Show expertise or service others aren’t providing.

4. Failing to Visit the Job Site

Using project plans solely as a basis for your bid can be inaccurate. When you conduct a site visit you get a better impression of logistical issues and risks that aren’t shown on paper.

Why Site Visits Matter:

• Identify hidden challenges: Your bid can be affected by existing structures or environmental issues.
• Accurate cost estimation: Using the actual site conditions helps not over or underestimating the cost of the project. 

5. Contract Terms and Conditions Overlooked

While the financials of a bid are easy to dive into, the terms of a contract can be easy to miss and cause roadblocks down the line. Terms on a project that may seem profitable can be unbalanced, with payment schedules that are not balanced or include liability clauses.

Best Practices for Contract Reviews:

• Review key elements: Terms of payment, change orders, and liability clauses need to be clear as well as acceptable.
• Consult legal experts: Before bidding, seek advice if you don’t know anything about the contract.

Signs that you need a Construction Bidding tool.

Not yet convinced that it is high time you incorporated a construction bidding tool in your construction project? Here are some signs that it’s time to invest:

You’re Losing Out on Bids Due to Late Submissions: 

In a case where you are in a rush to submit bids, the scheduling and notification system of a bidding tool comes in handy.

You’re Spending Too Much Time on Estimates: 

Calculating costs for materials, labor, and overhead strains a lot of time, and such estimates may not be very accurate. A bidding tool does this work, thus eliminating the need for time-consuming activities.

Your Team is Struggling with Collaboration: 

If your employees are located at several construction sites, a cloud-based bidding solution will help keep people informed and up-to-date on the job.

Conclusion

Every contractor requires a Construction Bidding Tool to help them in the whole bidding process, minimize mistakes, and give the contractor a high probability of winning good projects. If you are a general contractor with many subcontractors or a specialty contractor with specialized tasks, the right bidding tool will assist you in competing with other contractors in the construction industry.
When bidding for construction projects, it is important to submit bids that are not only correct but also timely, and we believe our construction software will be of great help with this. To get more information on how our solutions can help you with your bidding, please visit BLDON’s official site.