How to Bid on Plumbing Jobs?
Is there a correct way to bid on plumbing jobs? Yes! A good bid proposal increases your chances of winning the bid and generating more revenue. It increases your business and helps to establish a good reputation within the construction industry. We all know how brutally competitive it can get, with 10+ contractors bidding for the same job. So, how can you stand out from the rest?
Steps to Bid on Plumbing Jobs
Here are some simple ways you can enhance your bidding process, so learn how to bid on Plumbing Jobs!
1) Gather Project Information
Before bidding on a project, you have to decide whether it is the right one for you or not. It is better to bid for jobs you are eligible for. For example, if you are more comfortable with residential projects, avoid bidding for industrial-scale buildings.
How to make sure it’s the right project for you? Go through the project requirements and understand the vision of the client. Read architectural drawings and layouts to get an idea of the structure. It is better to visit the construction site as well. To bid on plumbing jobs, thoroughly analyse the scope of the project.
2) Quantify Materials
Make a list of all the materials needed for the construction project. It is better if you use a template or a checklist to make sure that you don’t miss out on anything.
Next, you need to take accurate measurements of the construction site in order to quantify materials; most experts tend to utilise advanced digital estimating software for precise takeoff. Plumbing Estimating and Takeoff Services use different software, including FastPipe, FastDuct, Planswift, Bluebeam, Stack, etc. They are much more efficient and accurate as compared to using pen and paper.
After you have the measurements, calculate the quantity needed. Add 5-10% as wastage of materials. Tip: Always double-check the dimensions to make sure they are accurate.
3) Calculate Material Cost
Material cost tends to make up more than 50% of the total budget. You need to price each unit of material, then calculate the total sum to come up with the total cost. Keep in mind that market prices tend to change over time and may fluctuate depending on the economy. Keeping up with the trends is an important part of winning plumbing jobs. So, to make sure material estimates are correct, you need to have the exact prices of materials. You should also add any customised material preferences if the client has mentioned them.
Material prices can also fluctuate depending on the quality of materials. If you are confused about the type of material used for the project, then it is always better to consult with the client.
4) Calculate Labour Cost
To bid on plumbing jobs, the next step is to calculate labour expenses associated with the construction project. Largest-scale projects with complex jobs may need a larger budget for labour. On the other hand, simple and smaller-scale construction projects don’t need a lot of money for labour. The calculation of labour cost depends on the fee structure of the workers. For example, some labourers are charged by the hour, but some charge based on a flat rate. There’s a very simple formula to calculate the hourly rate.
Labour Cost = Time taken to complete the project × Hourly cost
To make sure that the labour cost is accurate, you need to precisely predict the period required to complete the construction project. Moreover, it is also important to account for indirect expenses related to workers, such as insurance, benefits, overtime pay, any accidents or mishaps, etc.
5) Add Equipment Expenses
The next step in the estimation process is to calculate the expenses of the equipment. Equipment can be divided into categories: lightweight and heavyweight. Lightweight acquaintances are generally brought while heavyweight ones are rented out from different vendors.
6) Don’t Forget Overheads and Your Profit
To bid on plumbing jobs, the importance of overhead costs cannot be overstated. They are directly linked with primary resources such as materials, labour and equipment. To ensure that your plumbing bid is accurate, accounting for all the overhead costs is an essential step.
On the other hand, if not catered to and included in a plumbing bid, it can be underpriced, resulting in financial losses.
7) Develop a Contingency Plan
When creating a bid on plumbing jobs, whether installation or repair, unfavourable events in the shape of material and labour shortage and weather conditions can happen. That is why having a plan B shows a client that you are always one step ahead. So, if you have incorporated a contingency plan, then you do not have to worry.
8) Draft a Proposal
Once all of the above are accounted for, it is time to shape up your bidding proposal. Make sure that you add all the relevant documents attached to the proposal. In addition to that, you have to be detailed and make a proposal simple in order for your client to understand. This can be achieved by breaking down the costs into divisions and subdivisions. This will make the costs clearer for a client.
A Top Construction Estimating Company, such as SMA Estimating LLC, provides bid assistance to contractors and subcontractors. With a bid hit ratio of 98%, they help clients to win bids and land more jobs.
9) Review and Adjust
When you are done with your bid on plumbing jobs, always conduct a thorough review. This will allow you to adjust any mistakes or make any changes in the police due to the market fluctuation.
Final Words
Wrapping it all up, to Bid on plumbing jobs, it is important to know what a project demands. When you have decoded, the next part becomes easy. Also, ensure that you have used any modern tool that can make your bidding process faster and reliable. That being said, this article provides you with everything that you need to know for the preparation of a plumbing bid. It explains the process in simple, various steps that you can undertake to make an accurate bid that assures maximum chances of winning. All of that while providing you a competitive advantage as well.
