Are We Bidding Projects Effectively?

If you’re still losing money on “won” jobs… you’re not winning.

Too many general contractors celebrate bid wins without asking the more important question: did we price it right? Because here's the truth—landing a job with incomplete scope, shaky subcontractor numbers, or unrealistic production rates is a setup for margin bleed and rework. And it’s not just happening to the new guys.

According to a 2024 KPMG Global Construction Survey, 78% of major contractors reported at least one project in the past 12 months that experienced significant budget overruns. That’s not an estimating glitch—that’s a systemic gap in how we’re bidding and planning jobs.

So let’s ask the real question:Are you bidding effectively—or are you bidding optimistically?

Pre-construction is a Strategy—Not a Checklist

In high-performing firms, pre-construction is the foundation of execution. It’s where design intent, cost certainty, logistics, and manpower planning come together.

But industry-wide, collaboration is still falling short. Dodge Construction Network reports that only 35% of general contractors regularly involve field operations during the estimating phase.

That gap matters. When operations isn’t looped in early, estimates are built on assumptions—not on-site reality. This leads to field frustration, scope gaps, and a flood of RFIs once work starts.

Leadership Takeaway: If preconstruction isn’t cross-functional, it’s incomplete.

Estimating Accuracy: Hope is Not a Strategy

If you’re consistently off on labor, escalation, or materials, it’s not bad luck—it’s bad forecasting.

The Construction Industry Institute found that poor scope definition and inaccurate estimating are responsible for over 40% of project cost growth.

Ask your team:

• How often do we audit our estimates against actuals?

• Where are we consistently over or under budget?

• Are we building in enough contingency—or padding to hide the gaps?

Winning bids that don’t perform in the field aren’t wins—they’re liabilities.

Outdated Tools = Increased Risk

Here’s the reality: if you’re relying on spreadsheets and disconnected takeoff files, your estimating process isn’t just inefficient—it’s risky.

In a 2023 survey by JBKnowledge, 53% of contractors still use Excel as their primary estimating tool. That same group also reported higher rates of rework and change orders than those using integrated platforms.

Modern solutions like ProEst, STACK, and DESTINI Estimator allow for version tracking, centralized data, subcontractor comparisons, and more accurate forecasting. And when integrated with project management tools, they streamline the transition from bid to build.

Trade Coverage and Scope Clarity Still Lag

Subcontractor proposals are the backbone of your bid—and the most common point of failure. If your team isn’t actively managing scope inclusions, vetting vendor numbers, or confirming assumptions, you're flying blind.

Research from FMI Corp shows that 60% of construction professionals cite “incomplete or unclear scopes” as the top driver of change orders.

Your subs can’t price what they don’t understand. Clear bid packages + strong relationships = better coverage and fewer surprises.

Bid Volume ≠ Bid Effectiveness

Chasing every opportunity is a common trap. But high-volume bidding without strategy leads to burnout, bad fits, and margin slippage.

Use a bid/no-bid framework that prioritizes:

• Project type alignment

• Location and logistics feasibility

• Team capacity

• Historical client relationships

According to AGC, the average win rate in construction is 15–20%. That means you're wasting time on at least 80% of the opportunities if you're not targeting the right ones.

Closing Thought: Your Bid is a Promise

When you submit a bid, you’re making a promise—to your client, your team, and your bottom line. If that promise is built on outdated tools, unclear scopes, or assumptions that haven’t been validated, the job may already be in jeopardy—before it even starts.

Effective bidding is no longer about speed. It’s about alignment, accountability, and predictability.

So let’s reframe the goal:Don’t just win jobs. Win jobs that work.

Want help auditing your current preconstruction process or tools? Let’s chat. The most profitable jobs start with the smartest bids.

Works Cited

1. KPMG. (2024). Global Construction Survey 2024. https://kpmg.com/us/en/articles/2025/december-2024-construction-spending.html

2. Dodge Construction Network. (2023). The State of Preconstruction. https://www.construction.com/wp-content/uploads/2023/05/Dodge-Construction-Network-Year-End-Report.pdf

3. Construction Industry Institute (CII). (2022). Cost Predictability Report. https://construction-institute.org

4. JBKnowledge. (2023). Construction Technology Report. https://blog.procore.com/procore-ranked-no-1-in-project-management-and-mobile-app-functionality-by-jbknowledge-construction-technology-report/

5. FMI Corporation. (2023). The Changing Dynamics of Risk in Construction. https://fmicorp.com/insights/thought-leadership/2023-fmi-agc-risk-survey

6. Associated General Contractors of America (AGC). (2024). 2024 Construction Outlook. https://www.agc.org/sites/default/files/users/user21902/2024%20Construction%20Hiring%20and%20Business%20Outlook%20Report_V2.pdf