The commercial construction industry is highly competitive. Companies often invest a great deal into prospective projects that could lead to direct profit or future work. Submitting a successful bid for a sizable construction project could lead to a massive commitment of resources that lasts for multiple years and a major influx of income for the construction company. However, getting a big project can be a challenge, as there will inevitably be many other companies bidding on the same project.
Clients looking at the bids submitted by different construction companies often give priority consideration to the two factors below when determining who to hire for the project. Focusing on those terms when developing the bid could make all the difference.
Commercial construction projects often involve millions of dollars, and an investor or business planning such a project typically will recognize the high price point likely. Depending on the location and the scope of the project, a large commercial construction project could cost millions of dollars in many cases. While a business won’t automatically select the lowest bid when determining who to hire, the price quoted for the project compared with the promised results will have a major impact on the final decision of what company gets the bid. Competitive pricing is crucial to securing a project, but maintaining an appropriate profit margin is also important for the company’s long-term success.
Different construction companies suggest vastly different turnaround times for different stages in a commercial project. Particularly when a client wants to capitalize on a current oversight in the domestic market by offering the first business or facility of a certain type, a faster turnaround time is often very appealing. However, the downside of offering a relatively tight construction schedule is that it opens the door to complaints and challenges later if the company deviates from that timeline. Clients might become dissatisfied if rapid turnaround times prove unrealistic.
In some cases, the creativity of a project proposal could also have an impact on the client’s decision. Focusing efforts on being competitive but reasonable concerning both the timeline and the pricing of a project may help a company put together more competitive bids for commercial projects.