How To Properly Execute Contractor Bids to Maximize Profit

Check out these 5 Tips for maximizing profit with your Contractor Bids:

1Take planning seriously: Unforeseen surface preparation can send the best laid plans for tile and flooring contractors awry. Substrates plagued by moisture and unevenness can increase time and material costs. For this reason, do not bid a job before physically seeing it, and do not bid every  job the same way. Remember, preparation costs may vary dramatically and will affect labor and material costs.If you have any questions about a job, talk to the experts: your team. Get input from your installers regarding the budgeting of time and materials.

2Clarify expectations: Make sure your bid includes a detailed Scope of Work (SOW) – including design and materials. Wherever possible, avoid using allowances. That way, both you and your customer will avoid surprises. Use the phrase “not to exceed” in your SOW to prepare your customer for how you will deal with unforeseen costs.

Also make sure that your SOW outlines exactly what products you are using and any warranty information that your client may want down the road. For commercial installations we recommend that you Investigate any performance requirements – such as ANSI and ASTM standards – and ensure that the products you include in your bid meet them.

3. Document scope creep: If job conditions cause your costs – whether in labor or material – to exceed those documented in your SOW, document them. Take advantage of cell phone pictures with time stamps. Record aspects of the job as they are completed.

Often, tile and flooring installers are the last contractors on a job site. This means they may be responsible for clean up. Include this in your contractor bid so that you don’t end up spending time on something you aren’t getting paid for.

4. Manage product carefully: To cut down on job site waste, only send out as much product as can be used in one day. Although this may increase coordination time, it will help prevent wasting product – and money.

5. Sell value: You cannot sell your work on price alone. Investing in certifications and training and referencing them during the bid process will help you sell the value of your work.

Original Source: TEC