4 Key Benefits of Construction Technology for Contractors

The construction business is highly competitive, making it important for contractors to gain an edge so that they can win bids for big jobs. It isn't solely a question of winning a bid. If you bid on the wrong jobs or make mistakes on your bids, your company could be saddled with substantial losses.
If you have worked in the construction industry for any length of time, you probably already understand the bidding process and what it takes to win a construction bid. Securing the appropriate contractor bond, having a license, and having good financials aren't enough to win the right bids. Instead, you need to have a reliable process in place for evaluating potential projects, calculating your bids, and mitigating liability risks of the jobs you take on.
Construction technology offers a solution to how general contractors approach the bidding and contracting process. It has changed how contractors perform their work and how they can gain a competitive edge over others fighting for the same projects. Leveraging smart technology to enhance your construction business adds value during each project phase. The right technology can help you effectively evaluate projects, analyze costs, and submit bids that protect your profit margins while also being likelier to win. Harnessing technology can simplify the entire process and make it easier for everyone involved.
Here are four ways that construction technology can help your company submit winning bids on the right projects and protect your bottom line.

Avoid Bidding on the Wrong Jobs

While you might encounter many different potential projects in the course of doing business as a general contractor, not all jobs are created equally. You must carefully evaluate a potential project before deciding to submit a bid. If you bid on a job that your company can't handle, winning could cause your company to suffer steep financial losses and potential claims against your contractor bond.

Before you submit a bid, you must carefully calculate the numbers and review your available labor to determine whether you will be able to make a profit by accepting the contract. You'll also need to determine the risks a project might pose and whether those risks can be reduced or avoided or if you can afford to accept them.

Look at the project's requirements and scope before you bid on it. Think about whether your company has the capacity to complete the project during the pre-bidding phase. If you don't, you shouldn't submit a bid. In some cases, contractors bid on more jobs than they can handle. If you win too many bids, you might not be able to perform under all of your contracts. At the same time, you must bid on enough projects to remain in business. Construction technology can help to evaluate potential projects so that you can better understand the risks and whether you can take them on. This can be invaluable for striking a good balance between the need to bid on jobs versus the need to avoid bidding on the wrong ones.

Prevent Incomplete or Incorrect Bids

Submitting an incomplete bid on a project you want can result in a rejection. You'll need a process in place to ensure that all of the required supporting documents are submitted with your bid. For some high-value private or public projects, you'll also need to submit bid bonds, performance bonds, and payment bonds to guarantee that you will follow through on the project if your bid wins, will perform under the contract as obligated, and will pay your subcontractors and suppliers what they are owed. For example, the Miller Act requires contractors that want to work on federal projects valued at $100,000 or more to purchase all three of these types of bonds. Failing to get properly bonded and submitting proof of your bonds can quickly result in a rejected bid.

Some project owners also require contractors to go through a prequalification process before they can bid. You might need to attend a pre-bid meeting and have deadlines for the bid submission. Keeping track of all of the details can be difficult. However, construction software can help to track your progress through each step so that you submit your bid on time.

Construction software might also help you to ensure you have included all of the appropriate calculations when determining how much to bid on a project. If you leave something out, your bid bond means that you will follow through on the project at the bid price even if doing so will result in a loss.

Mitigate the Risk of Litigation

Construction defect claims are always a risk in a construction project. As you and your subcontractors perform the work, it is important to keep a detailed record. Documenting all work performed and the steps taken can help to defend against lawsuits. Taking photographs and videos to show the conditions on the worksite and the quality of the work can be invaluable evidence later if a lawsuit is filed.

Photographs are particularly helpful for showing the location of utilities between the time of inspection and when they are covered. If they are poorly installed, photographs taken at the time they are completed can help to ensure repairs are made before covering them up. If they are not repaired at this stage, later repairs could be extremely costly and result in lawsuits.

Documentation also helps to mitigate the risks of lawsuits by showing the condition everything was in at the time it was built after an inspection. If a project owner subsequently tries to sue you for shoddy work or construction defects, you can present evidence showing the condition it was in when you built it and potentially avoid litigation.

Provide Documentation for the Facilities Team

After you have delivered a project, construction software will allow you to present a complete record of the work you performed to the facilities team. This can help to add value and make the transition from the completed project to its intended use much easier for the owner. They'll be able to see everything you did, and they can use the location and searchable record to convert sales prospects when necessary.

Having a visual record can help to clarify where the built condition of the project does not precisely match the architectural plans. Visual records can also help prospective clients to avoid losing knowledge when members of their facilities team move on so that the replacements can quickly get up to speed.

Construction technology can help you to choose the right projects, submit correct bids, and manage your projects more effectively. When you are wanting to win bids, leveraging technology can provide you a competitive advantage over others who don't have current construction management software.

Author: Matthew Falloretta