Generally speaking, the majority of the construction industry has been slow or reluctant to adopt new technology and methods to improve their processes. We get it – change is hard. But being a late adopter can mean missed opportunities for growth, especially for custom home builders and remodelers with tight margins.
The risks become very clear when you look at bid management processes. General contractors win only one out of six bids, and losing bids or having a very low bid-hit ratio is one of the primary reasons why the average profit margin in the construction industry is less than 1 percent.
How can construction bid management software help to increase your profit margins? Below are answers to seven of the most frequently asked questions (FAQs):
- What can a bid management software help me manage? Great software enables you to manage all of your subcontractor data, send invitations to bid, and compare proposals from start to finish. It enables you to share project documents in the process, prequalify subcontractors, track compliance, and integrate with your construction project management solution.
- How easy is it to make changes and adjustments? Bid management software makes it easy to keep all your bids and communication organized and easily accessible in one inbox. As a builder, you can send addendums, revisions, clarifications, and reminders in seconds to make sure subcontractors have the latest information to build their bids on.
- What type of calculations can be performed? Not a math wizard? No problem. Typical bid management software integrates the calculating function into the program, so that material can be picked from the document and automatically perform the quantity requirement calculations. This saves you from having to recheck manual calculations.
- What kind of delivery method can I expect? The best bid management software will work with any project delivery method. Whether you or your client prefer design-bid-build (DBB), design-build (DB) or others, look for a software that works for the way you do business.
- What kind of construction procurement methods does bid management software work with? Whether you use the best value method, negotiated method, sole source/direct select, or low bid, a great bid management software works with your preferred method.
- What types or contracts are typically supported? The most common types of contracts construction bid management software typically supports are lump sum, cost-plus, time and materials, unit price, and guaranteed maximum price (GMP).
With BuildTools construction management, you’ll find tools to simplify your current bidding process while also promoting your subcontractors’ adoption to technology. You have the ability to create, send, and review your entire bidding process all in one place. This allows builders to send all up-to-date documents including plans, selections, specifications, and any additional documents for their subs to reference.
While subs have the ability to access BuildTools (free of charge), they are not required to login to review the bid content or submit their offers. All bid notifications are sent to subcontractors in an email format.
Ready to simplify your bidding practices while taking a step towards modernizing your communication? Schedule a demo with one of our solution experts today to see BuildTools in action!