What is the best practice when bidding a project?

Being as accurate as circumstances allow in bidding a project is crucial for several reasons. Accuracy in estimating project costs helps ensure that the bid reflects the true financial resources required to complete the project effectively. This means considering all aspects of the project, including materials, labor, overhead, and any potential unforeseen expenses. An accurate bid not only aids in maintaining profitability but also enhances the builder's credibility and reliability in the eyes of clients.

Furthermore, precision in bidding can foster a better understanding of project requirements and possible challenges that may arise during construction. This proactive approach supports effective project management and helps establish trust with stakeholders, which is vital for ongoing business relationships and future projects.

While adding contingencies or a fixed percentage for profit may seem reasonable under certain conditions, these methods can lead to either overestimation or underestimation of the actual costs, potentially jeopardizing the project’s success. Instead, focusing on an accurate assessment allows builders to be competitive while also safeguarding their margin.