Bidding Mistakes And How To Avoid Them

When it comes to bidding for major projects, the success of your construction business rests on your ability to accurately gauge how much a job will cost and make competitive offers. However, without the proper experience and understanding of these processes, there’s a lot that you can get wrong with estimating costs or submitting bids. While making mistakes is part of any learning process, some errors within the bid process could cause serious trouble for your company in terms of budgeting or becoming favored over other businesses. 

That’s why today Takeoffsconstruction discusses common bidding mistakes and how to avoid them so that you can hit the ground running each time you submit a proposal!

8 Common Construction Bidding Mistakes and How To Avoid Them:

1. Wrongly Estimating the Project’s Costs:

One of the most common mistakes in bidding is underestimating the true cost of a project. This can lead to a number of problems down the line, including running out of funds, failing to deliver on promises, and damaging your reputation in the industry. 

To avoid this mistake, it is important to do your due diligence upfront and carefully assess all of the costs associated with the project. This includes not just materials and labor, but also overhead costs, unexpected expenses, and any potential delays or setbacks. 

Taking the time to thoroughly analyze all of these factors will help ensure that your bid is accurate and that you are able to deliver on your promises to your clients.

2. Not Researching the Competition:

It may be tempting to quickly submit a bid without examining what your competitors are offering, failing to do so can result in lost opportunities and decreased profits. By thoroughly researching the competition, you can gain valuable insights into their strengths and weaknesses, allowing you to tailor your bid to better stand out in the marketplace. 

Additionally, understanding how your competitors are approaching the project can help you identify areas where you can differentiate yourself, such as offering unique services or materials. 

3. Missing out on Deadlines and Paperwork:

The construction industry is known for its strict deadlines and paperwork requirements, making it imperative for contractors to avoid bidding mistakes. Missing out on deadlines and paperwork can have serious consequences, such as losing out on lucrative contracts or facing legal repercussions. 

One way for contractors to avoid these costly mistakes is to prioritize organization and attention to detail when submitting bids. This includes closely reviewing bid requirements, keeping track of deadlines, and ensuring all necessary paperwork is submitted correctly and on time. 

4. Bidding the Wrong Projects:

One of the biggest mistakes contractors can make is bidding on the wrong projects. While the temptation may be to bid on any and every opportunity that comes your way, it’s important to take a step back and assess whether the project aligns with your company’s expertise, resources, and capacity. 

Bidding on projects that are outside of your wheelhouse can lead to poor workmanship, missed deadlines, and unhappy clients.

5. Offering Too Low or Too High Prices:

Offering a price that is too low can make a contractor appear inexperienced or even untrustworthy.  Conversely, an excessively high bid may scare off potential clients. Conducting thorough research to determine an accurate estimate for project costs, understanding the client’s needs and budget, and assessing the competition can all contribute to submitting a competitive bid that ensures profitability and success. 

By avoiding these bidding errors, construction professionals can achieve long term financial gains as well as establish a reputation for quality workmanship and reliable service.

6. Failing to Follow Up on Submitted Bids:

In the world of construction, bidding on a project can be a daunting task. While it’s important to put together an accurate and competitive bid, it’s equally important to follow up on it once it’s been submitted. 

Failing to do so could mean missing out on valuable opportunities, and ultimately losing work to competitors. However, there are steps you can take to avoid this common bidding mistake. By staying organized, setting reminders, and communicating with clients throughout the bidding process, you can increase your chances of landing that next big project. 

7. Not Understanding the Contract Terms and Conditions:

Mistakes made during the bidding process can have a significant impact on future construction projects. Bidders who fail to understand the contract terms and conditions risk losing out on lucrative contracts and incurring financial losses. 

In the construction industry, it is essential to have a deep understanding of the legal technicalities to avoid common bidding mistakes. Some of these mistakes can include not adhering to contractual guidelines, failing to fully comprehend the language and conditions, and not adequately assessing the risk involved. 

8. Failing to Consider Risk Factors:

Bidding mistakes can cost the company more than just the project at hand. Failing to consider risk factors is one common mistake that can prove catastrophic.

Risks such as labor shortages, unexpected expenses, and weather interruptions are just a few factors that can throw off a construction project’s timeline and budget. To avoid bidding mistakes, it is crucial to conduct thorough research and analysis of bid documents and project details to identify potential risks and account for them in the bid. 

Addressing the risks upfront ensures a smoother project execution and ultimately leads to a job well done, on time and within budget.


It’s important to take the time to properly understand and evaluate your bidding practices to avoid costly mistakes. With a bit of research and preparation, you can confidently submit bids that reflect your company’s true potential. By understanding the common pitfalls of bidding for construction projects and having the right team of subcontractors in place, you can ensure a successful bidding process and long term success for your business. 

For further information, please visit our website or contact us directly to speak with a member of our team! We look forward to hearing from you.

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