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The High Cost of Low Bids: When Contractors Compete on Price, Everyone Loses

Levelset

Prioritizing a low bid over contractor performance is a lose-lose procurement strategy. Unfortunately, low bidding is an accepted practice for both owners and contractors alike. Owners will say that focusing on the lowest bid possible ensures they get a good price. Who’s responsible for low-bid procurement?

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Bigger, Better Jobs: Tips for Getting the Jobs That Help Grow Your Business

Levelset

Delayed payment is felt by nearly 90% of contractors, according to Levelset’s 2021 Construction Cash Flow & Payment Report. While most specialty contractors aim to take on jobs with higher profit margins, buying materials upfront can drain the available cash needed to make this happen. Bid bigger.

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Building Strong Starts: Protecting Profit Margins Through Effective Preconstruction

Autodesk Construction Cloud

Plus, preconstruction solutions like Autodesk Construction Cloud offer automated clash detection tools to streamline model coordination and free your team from having to do tedious processes. When the process isn’t carried out efficiently, bid management takes longer and causes more stress than necessary.

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Data Analytics Trends in Construction

Viewpoint Construction Technology

And true data analytics is more than just tracking traditional job costs and cash flow. Bidding Smarter and Winning More Work. Closely tracking things like job costs, change orders, material and equipment usage and worker productivity from your projects can help better forecast future work and lead to smarter bidding.

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Contractor Loans: An Expert's Guide On How To Finance Your Business

Contractor Bookkeeping

Hammering out bids, winning jobs, managing a crew, knocking out material lists and – most importantly – making sure that you stay on top of your cash flow are all big pieces of the contracting business puzzle.

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How High-Profit Jobs Can Make Or Break Your Construction Company

Contractor Bookkeeping

In some cases, they can bankrupt your construction company because you bid on the project using whatever model you are accustomed to using, and in the end, you wind up with cash flow problems. The problem is that high-profit jobs can turn into low or no-profit jobs.

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Selling Your Home Building Company? Here's What to Expect

Pro Builder

You also need to prepare key information about the assets that will be presented to bidders, who will then use that data to evaluate your business and populate their own cash flow and valuation models. The marketing and bidding phase typically takes 45 to 60 days. Diligence and Closing.

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