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Get ready to win more remodeling bids with construction estimating software and these tips.
Your Cheat Sheet to Winning Remodeling Bids
You’re ready to pull ahead of your competition and start winning the best renovation projects in your region, but what are your first steps? Residential remodels are increasing as homeowners prioritize the space they have—knowing that changing the layout or adding square footage to an existing home may cost less than buying a new home. Commercial renovations cover a wide range of projects from office build-outs to retail updates. And as public projects pick up, remodeling RFQs for schools, park facilities, and transportation hubs will start to land on your desk.
Whatever your trade or project niche may be, the best practices around renovation projects are always going to start with tech tools like a remodeling estimating software, and end with reviewing all of your details so nothing is missed. Here are our expert recommendations for bidding on construction jobs, especially when they are remodels.
Step by Step: Bid on Construction Jobs and Remodeling Projects
- Choose your tech tools
- Gather the project details
- Select your partners
- Self-Perform vs Sub-Contract
- Set project costs with remodeling estimating software
- Add your overhead expenses
- Calculate profit margins
Choose Your Tech Tools
The old-school approach to construction may be all about paper blueprints, clipboards on a job site, and manual price calculations, but as technology brings efficiency to the industry, successful contractors are adopting a tech strategy. For project management and workflow, choose a system that allows you to track your deliveries, subcontractors, and schedule. When it comes to pricing, choose a remodeling estimating software that makes it easy to save your favorite materials and equipment and provides the most up-to-date local cost data, so you never have to guesstimate for that big project.
Gather the Project Details
For larger projects, the details will be included in an RFQ or RFP package; but to cover all of your bases, inquire about a pre-bid site visit. Renovations come with their own set of challenges, including existing materials and structures that may not be to code. If you are bidding a smaller remodel project, like a residential bathroom, a site visit is definitely the best way to go. Take your own measurements with a precise digital tape measure, and capture photos of any unique features that will play a role in your final estimate. Also check with the client about deadlines, design phases, and construction timelines so you can assign your team and resources appropriately.
Select Your Partners
Maybe you are handling your next remodeling project on your own, but more likely, you are bringing the best team with you. When you bid on construction jobs, your partners matter and deserve special consideration. Will you partner with a larger GC with more remodeling experience to help win the bid? Can you bring along an expert interior designer to give you an extra edge during selection? Maybe the project requires custom cabinetry and you can connect with a casework specialist to help your team stand out.
Self-Perform vs. Sub-Contract
Renovation and remodeling projects often have multiple trades, and even if you are not a general contractor, there may be room for hiring subcontractors for some of the work. And your decision to self-perform should not be solely based on your skillset, but also take into account the value of your time, other projects you have been awarded, and the quality of labor in your region.
Set Project Costs with Remodeling Estimating Software
The right estimating software is a lifeline for remodeling projects. Successful remodelers know that estimating software that incorporates multi-page takeoffs can save hours or days in the pricing process. Keeping materials, labor, and equipment organized in the final estimate also shows your professionalism to potential clients. For sourcing your prices, choose an estimating software like 1build that includes live and local cost data, rather than relying on national numbers that are only updated once a quarter. With up-to-date costs, you can go into every project with confidence.
Add Your Overhead Expenses
Material, labor, and equipment are just a few elements of a complete renovation estimate. Determining what your overhead expenses will be for this project type will keep your company profitable at every stage. These costs can be averaged over a year and divided either per project or per month. Overhead items for a construction remodeling company may include:
- Licensure and local business fees
- General liability insurance and specific equipment coverage
- Any office space costs, including rent and utilities
- On-site office trailer
- Salaries and benefits for full time office employees
- Transportation and fuel costs
- Project management and construction estimating software
- Marketing and advertising, including a company website
Calculate Profit Margins
With 1build’s construction estimating software, adding profit margins to every estimate is straightforward, with a simple percentage selection. The percentage you choose is rolled into your overall costs and is not singled out by line item for your potential client. Remodelers typically set their profit margin anywhere from 15-40%, depending on local competition and market conditions.
By following these steps, your remodeling bid is off to a great start. To learn more about the 1build construction estimating software and our professional estimating services for contractors, schedule a demo with our team.