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Unbalanced Bidding in Construction
We believe strongly that a contractor makes the most money in the field. Building work on time and on budget is the hallmark of great contractors and also, profitable ones
However, it is not the only place that a construction firm makes money. The bid table is also. There are many ways that a contractor adds margin to his bottom line by using “work smart” strategies when proposing profitable work.
Examples such as the use of the Gates Model, Dual Overhead Rate Recovery, and Job Sizing are winning methods to keep risk lower and profit higher while estimating, pricing and bidding work.
Unbalanced Bidding is another process that helps construction firms make extra margin on certain types of bids.
With the advent of Job Order Contracts and other Unit Price Contracting Methods, opportunities arise. Owners have attempted to further control costs by creating these contract terms. Business minded contractors know that for every change, there is some chance to profit from it.
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Matt Stevens is a management advisor who works only with construction contractors. He has performed training and business consultation for the contracting community since 1994. Matt can be reached at mstevens@stevensci.com.">mstevens@stevensci.com.
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Posted by Matt Stevens at December 1, 2006 2:42 AM