Don't Miscalculate!: 5 Things to Check before Construction Bidding

While no project is perfect, it is critical to be meticulous and intentional when analyzing and forecasting future expenditures and expenses. This is especially important if you want to secure contracts that may potentially provide the most profit for your company.

Here are 5 factors you should not underestimate in your final construction bidding:

1. All Equipment Needed

Calculate each piece of equipment, from your company's pickup truck to rental cranes and special lifts. Don't forget to factor in depreciation by charging per hour to get the correct cost.

2. Where to Put Excavated Material (Excavation Work)

Inspect the area and calculate the cubic meters of material to be excavated carefully. For example, if you win a low bid for excavating a swimming pool, but the cost of removing the excavated soil is high, your profit will be reduced significantly.

3. Long Lead Times for Products

Plan for products with long production times, such as glass curtain wall systems, escalators, and steel structures. These products can impact your construction schedule, so you need to manage them effectively in your construction bidding process to avoid delays.

4. Enforced Safety Standards at Work

Don't overlook the costs of various safety equipment required on the job site, such as cones, barriers, safety nets, and other similar protective gear. There may be additional regulations from the Ministry regarding the proper disposal of hazardous waste.

5. The Actual Job Site

Always visit the actual job site to see the physical conditions in person. Unfamiliar job site conditions, such as working in a cramped urban area, can lead to higher costs and reduce your profit.

Check Minimum Wage Rates Again

When you rush to submit a bid, it's easy to make the same old mistakes. Did you forget about troublesome suppliers or any delayed transactions? No one wants the last 5% of a job to eat up 50% of your entire profit, but it can happen to anyone, even experienced subcontractors and general contractors.

For example, you need to check the minimum wage for an 8-story car park construction project or a 60,000 square meter wall painting project. Instead of wasting time investing in the accounting department to determine or adjust the actual labor cost calculation, you can take a shortcut by estimating from the minimum wage and adding 26 percent.

Also, don't forget to consider the hourly rate when hiring special labor or craftsmen. Everything mentioned above will benefit your construction business if you can identify these issues early in the project.

Moving on to Your Next Construction Project

If you dig a little deeper into your estimating process, you may find some room for improvement. Refining your estimating workflow is one way to avoid making the same mistakes repeatedly. Here are a few more tips and techniques to help you look forward to your next project:

Track your progress against your original estimate to make it easier to predict how long future work will take.

Meet with clients after project completion and share positive or corrective feedback with estimators and the team.

Complete each job with a P&L (Profit and Loss) so everyone knows they are contributing to making each job profitable and can be even more profitable than the last.

Having a Dedicated Construction Material Salesperson

This is something many contractors overlook. Your time may be more valuable than spending it researching prices for each item, of which there are many, that will be needed for that bid. It can be very time-consuming!

It's true that you may get a better price for some items than your regular supplier, but if you average the prices of 3, 5, or more items, you may find that they are more expensive, or if they are cheaper, they may only be slightly cheaper. Isn't it a waste of time?

In terms of construction materials, it's much better to have someone to help you. If you need any product, just call or LINE them. It's much better than finding it yourself. If you think it's too expensive, try to negotiate the price or find another supplier to compare. However, people in the industry will know that it takes a long time to get a good price from the big players in the Thai construction industry.

But not at AY Contento (let me sell a little). Our sales are fast, powerful, and reliable!

Contact us to request a salesperson to take care of you