Posts

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):

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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!


Don’t miss anything from BuildTools! Follow us on InstagramFacebookTwitter, and LinkedIn to stay in the loop. 

Take Back Your Most Valuable Resource – Your Time

If you’re in the middle of the bidding process, you know that it may be a while before you can actually break ground on your project. Lining up subcontractors is extremely time-consuming.

First, you need to send out requests for bids, and it takes time and effort to make sure you’re reaching out to reputable, affordable subcontractors that meet your project specifications and risk criteria. Then, it’s hurry up and wait as the subcontractors process your requests and send in their proposals. Finally, you need to budget time to sift through all of the proposals and make choices that that will meet your quality standards and keep you profitable.

One way to streamline the bidding process is with construction management software (CMS). Here are five ways CMS software can streamline the bidding process:

1. Ensure bid coverage

Say goodbye to the days of sifting through your phone and email to narrow down a list of subcontractors you want to reach out to and those you don’t. CMS ensures bid coverage by letting you select which contacts to invite, creating invitations to bid, and sharing plans and specifications with all invited subcontractors online. Trades can be automatically included in project specs and mapped to the cost codes you specify. You can even select bidders based on responsiveness, so that you can ensure you receive the right number of bids for the lowest possible pricing.

The software completes the task in minutes; simply scroll through your list, click on the subcontractors you want to request bids from, and you’re done. A great construction management application can support all of your subcontractor contact information. Your implementation team will make sure that it’s organized in a way that works for you.

2. Prequalify subcontractors

Customized forms and industry-standard ConsensusDocs preconstruction forms in the bid management tool enable you to prequalify trade contractors. Before evaluating final bids, you can eliminate subcontractors that do not qualify based on specific factors including financials, bonding capacities, current workload, past work experience, and safety records.

3. Improve communications

Not only are requests for bids expedited with construction management software, but you’re able to share updates and information with all bidders and keep track of all information accessed. This empowers subs to submit proposals and helps you communicate with them much more efficiently and productively. Because the software can be accessed on any internet-enabled device, you can have conversations in the field and the office.

Waiting for bids to come back can be a real source of frustration. You’re busy and you know your subcontractors are too, but delaying the build process while waiting on bids is an easy problem to avoid. With BuildTools, you can set due dates for all your bids along with due date reminders, so you can easily keep track of upcoming deadlines.

Due date reminders end the time-consuming process of hounding subcontractors to get their bids to you. Instead, set a reminder to be sent out a week or a few days before bids are due and get on with the rest of your day knowing that the reminder has been automated. You’ll increase your efficiency and percentage of on-time bids, allowing you to make the right decision for your client at a price that works for you.

4. Centralize bids in one easy platform

Once you get bids back from your potential subcontractors, it’s time to sift through them and find the best option. One hurdle―a lack of standardization across bids―can make them hard to compare.

Using a construction management software application allows you to standardize the submission process in order to make apples-to-apples comparisons between offers. Whether you want bids submitted in a web-based form or a simple email, a construction management platform gives you complete control over the process, not your subcontractors.

5. Stay organized

Having one centralized repository for all project information and documentation makes organizing the otherwise complex bid process a breeze. CMS allows you to keep notes for each sub, track conversations, and generate call logs so that you have records of all communications, regardless of the channel. The information is updated in real-time, sortable by field, and accessible to anyone on your team who needs it, without having to send bulky emails.

Take back the bidding process

Having your bids in order gives you the ability to make the best choice for your project while keeping it moving along at the right pace. BuildTools streamlines the bidding process to keep your build on schedule and gives you more time back in your day so you can focus on the more important tasks.

Ready to see how BuildTools can help your business? Schedule a demo with one of our software experts today.


Don’t miss anything from BuildTools! Follow us on InstagramFacebookTwitter, and LinkedIn to stay in the loop. 

Historically speaking, the vast majority of the construction industry has been reluctant to adopt modern technology and methods to increase their building practices. As a result, builders could be sacrificing quality, speed, and profitability.

With BuildTools bid management, you will find tools to simplify your current bidding process while also promoting your subcontractor’s adoption to technology. You have the ability 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 be sent to subcontractors in an email format.

A centralized bidding process is the name of the game – and a great time saver. 

With a centralized bidding process, builders have less moving parts, creating more efficiency, and ultimately save time and effort. In the end, builders are looking for ways to save time – in this business time is money.

Some key highlights of BuildTools Bid Management Tool:

  • Subs don’t need to login
    • There is no need for them to change their behavior to make the system work for the builder
  • Keep all the info connected to the project vs. having replies in different people inboxes etc.
    • Reduces the back and forth with forwarding messages, CC’ing, etc.
  • Easy to take the info and place it into the budgets
    • Less chance for errors in moving the numbers around
  • Tracking the bids is easy
    • Know the current status and if the bid has been read at any point in time

Ready to simplify your bidding practices while taking a step towards modernizing your communication? Schedule a demo today.