Challenge:
If you’re a general contractor, you want the lowest bid proposal price and the highest-quality subcontractor work. Many times, as a GC, we forget to be transparent with our subcontractors on where they stand within the project bid tabulations. This overlook results in the subs providing the same price for the same work continuously through the bid management phase – AKA they’ll never know if they should submit a lower price or more work to combat another sub’s offer and you’ll never receive the most qualified bid.
Analysis:
It’s important to be transparent with your subcontractor on where they stand in the project bid tabulations. A well-informed sub is a happy sub and will be more willing to work with you on the price, budget or type of work offered. General contractors and subcontractors at the end of the day have one end goal in mind, winning the project. So, when all project information is shared, there is a sense of cohesiveness and teamwork bond towards winning the project.
Solution:
Once you have bid the construction project, set something up to share the bid tabulations back to the subcontractors. Show them if they’re doing good, doing bad or what they can do to be your number one pick. You can send the bid tabulations through email, fax or even provide through an online portal. Remember, providing this type of data helps the subcontractor get better pricing, which in turn is going to help you get better pricing and the most qualified bid.
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