Bidding for jobs can be challenging, especially when you’re starting out. As we
heard during the Prebble 2024 Young Landscaper of the Year, many contestants have
ambitions of running their own business one day. So, NZ Landscaper has teamed up
with Simpro to offer some advice! In part two of this series of two articles, we find out
how landscapers can up their bidding game!
When it comes to bids, there’s no one-size fits-all approach. Each type of bid has
its own style and benefits and knowing which one to use can give you a leg up on the
competition. Let’s break down the most common types of bids.
Lump sum bids
First up, we’ve got lump sum bids. This is the no nonsense approach, where you give the project owner a single, fixed price for the whole job. Simple, right? The project owner loves it because it’s easy to understand – they know exactly what they're getting into cost-wise. But for you, the landscaper, it means you’ve got to nail that cost estimation down to the last paving slab. If anything, unexpected pops up, you’re the one who’s going to wear it. So, precision is the name of the game here.
Unit price bids
Next on the list are unit price bids. These are a bit more flexible and come in handy when you’re dealing with projects, where the exact quantities of materials or labour aren’t set in stone. You break the project down into individual units of work and assign a price to each. This way, if the scope changes or you need more materials than expected, the project owner knows what each unit will cost. It’s a bit more work on your end, because you need to track every unit of work performed, but it keeps things transparent and adaptable.
Cost plus bids
Now let’s talk about cost plus bids. With this type, you get paid for all your project expenses
plus an additional fee for profit. It’s a sweet deal for transparency and reducing your risk – you’re covered for all costs and the project owner sees exactly where their money’s going. However, it can be a harder sell because the project owner might worry about costs ballooning out of control. They’ve got to trust that you’re not padding the bill, so honesty and good communication are key.
Design build bids
Last but not least, we have design-build bids. This is where you take the reins on both designing and building the project. It’s an integrated approach that can save time and money because you’re handling everything in-house. This streamlines the process and cuts out a lot of back-and-forth between the designer and the landscape team. But it’s not for the faint of heart – you need to have the chops for both design and construction. If you’ve got a strong team that can do both, this can be a winning bid strategy. Each type of bid has its own
perks and pitfalls, so it’s all about choosing the right one for the job at hand. Get familiar with these bid types and you’ll be better equipped to tackle any project that comes your way.
Challenges and solutions in the bidding process
Bidding for landscaping jobs is a bit like navigating a minefield. You've got tight deadlines, cost
constraints and some legalities to deal with. Here are some of the common hurdles you’ll face in the bidding process and how you can smash through them.
Tight deadlines
Challenge:
Meeting tight deadlines can be a real headache. When you’re under the pump, it’s easy to rush and make mistakes, leading to inaccurate bids that can cost you big time.
Solution:
The key here is having a rock-solid, structured bidding process. Break down the process into clear milestones and set realistic timelines for each step. This helps keep things on track and prevents last minute scrambles. Using bid management software can be a game-changer. It streamlines the process and automates parts of the workflow, giving you more time to focus on getting the details right.
Managing bid costs and budget constraints
Challenge:
Getting your cost estimation spot on is crucial but it’s no walk in the park. Staying within
budget constraints while making sure your bid is competitive can be tricky.
Solution:
Start by diving deep into thorough and detailed cost estimations. Use historical data and current market trends to guide your estimates. It’s also essential to build strong relationships with reliable suppliers and subcontractors. Their accurate quotes will help keep your estimates realistic and your budget in check.
Legal and regulatory issues
Challenge:
The legal and regulatory landscape can be a maze. Keeping up with regulations is time-consuming but necessary to avoid nasty surprises down the track.
Solution:
Stay on top of the game by keeping informed about all the relevant regulations that affect your projects. Partner with legal experts, who can help ensure all your bid documents are compliant. This saves you a heap of trouble and potential legal hassles. Navigating these challenges can feel like wrangling a wild beast but, with the right strategies and tools, you can tame the bidding process and come out on top every time.
Continue your improvement with landscaping bidding!
Mastering landscaping bidding is an ongoing process. By understanding the different types
of bids, following a structured process and tackling challenges head-on, you can improve your chances of winning profitable projects. Remember, every bid is an opportunity to refine your skills and grow your business. For more insights explore the industries we help and how Simpro can support your journey.
Frequently asked questions
Q. How can small construction firms compete with larger companies in the bidding process?
A. Small firms can compete by specialising in niche markets, offering personalised service and
leveraging local knowledge. Building a strong reputation through quality work and networking
can also help level the playing field.
Q. What are the common mistakes to avoid in the landscaping bidding process?
A. Common mistakes include underestimating costs, missing deadlines and failing to thoroughly understand the project scope. Ensuring accurate cost estimation, timely submission and a clear understanding of project requirements are key to avoiding these pitfalls.
Q. How does bid management software help in the bidding process?
A. Bid management software can streamline the bidding process by automating tasks, improving accuracy in cost estimation and ensuring timely submissions. It also helps in tracking bids, managing documents and maintaining compliance with legal and regulatory requirements.
Q. What is the importance of a pre-bid meeting in the bidding process?
A. A pre-bid meeting is crucial as it allows bidders to clarify project details, ask question, and
understand site conditions. It helps in preparing a more accurate and competitive bid, reducing the risk of misunderstandings and discrepancies later on.
Q. How can accurate inventory management impact the success of bids?
A. Accurate inventory management ensures that all materials and resources are accounted for, reducing the risk of cost overruns and project delays. It helps in precise cost estimation and efficient project execution.
Q. Why is understanding local regulations important in the landscaping bidding process?
A. Understanding local regulations is essential to ensure compliance and avoid legal issues. It helps in preparing bid documents that meet all legal requirements, reducing the risk of disqualification or project delays due to regulatory violations.
Q. How can historical data improve cost estimation in bids?
A. Historical data provides a reference for previous project costs, helping in making more accurate and informed cost estimates. It allows for better budgeting and reduces the risk of underestimating or overestimating project expenses.
Q. What role do subcontractors play in bidding process?
A. Subcontractors provide specialised skills and resources that may not be available in-house.
Engaging reliable subcontractors helps in accurate cost estimation, efficient project execution and meeting project deadlines.
Q. How can improving estimating skills benefit the bidding process?
A. Improving estimating skills enhances the accuracy of cost estimates, reducing the risk
of cost overruns and increasing the chances of winning bids. It involves understanding market trends, using historical data and engaging with reliable suppliers and subcontractors.
Q. What are the benefits of design-build bids in landscaping projects?
A. Design-build bids offer an integrated approach, combining design and construction under one contract. This can streamline the process, reduce costs and improve project coordination and communication. However, it requires the contractor bid to have both design and construction expertise.
Q. How can Simpro support landscaping bidding and project management?
A. Simpro offers a range of tools and solutions to support bidding and project management. From bid management software to inventory tracking and contractor bid management systems, Simpro helps streamline processes, improve accuracy and ensure compliance.
Bidding is a critical aspect of the landscaping industry that requires a clear understanding of the process, accurate cost estimation and the ability to navigate challenges. By mastering the different types of bids, following a structured process and leveraging tools like Simpro, landscapers can improve their bidding success and grow their business.
Built by the trades, for the trades, Simpro is a total business software for the trades – including landscapers. To learn more, visit simprogroup.com or contact sales@simpro.co.nz