ConstructConnect Blog

It’s safe to say that 2020 has pretty much been a dumpster fire of a year. The coronavirus pandemic and subsequent shelter-in-place and stay-at-home orders and other health precautions has significantly impacted how we work and live. This year I’ve found myself with, not necessarily more free time, but less things to do to occupy that time like going to the movies, traveling, attending sporting events and concerts, and hanging out with friends and family.

When it comes to the construction business, the only thing that defines success is the quality of relationships. Either it is the relationships with the customers or the suppliers, it is the key to business continuity that defines the growth model.

Not that long ago, general contractors who weren't using a subcontractor prequalification process were taking a huge risk. We were in the midst of the Great Recession and good contracting opportunities were becoming harder and harder to find. This led to more firms, both general contractors and subcontractors, bidding on projects they weren't equipped to handle. General contractors were focused more on getting the lowest bid from subcontractors rather than making sure they were capable of adequately performing the work.

Dealing with a defaulting subcontractor can be a real nightmare for general contractors. A nonperforming subcontractor or one that isn’t meeting its contractual obligations can wreak havoc on a project.

Over the years, the construction industry has gone through an evolution of technology. Especially, the introduction of advanced construction project management tools and software have all made it easier for contractors to perform the work of a day in a few hours.

The construction labor shortage is dire. According to the 2020 Workforce Survey by the Associated General Contractors of America, more than half of responding construction firms said they could not find enough skilled tradespeople for their open jobs.

Putting together a winning bid proposal, or even a competitive one, takes knowledge and skill. It’s a bit more complicated than just putting some numbers together and hoping for the best. Good bid preparation requires a lot of time and effort and involves everything from reading and fully understanding the plans and specifications to accurately estimating costs for labor, materials and equipment. Making even the smallest mistake can mean the difference between submitting a winning bid and missing out on a coveted and profitable project. We’ve put together our top 10 tips for submitting better bids.

While early builders proved that construction with primitive tools and materials is possible, it would take them generations to accomplish what modern teams can do in a few months.

Many construction companies operate on razor thin margins and most are definitely not strangers to cash flow issues. Compound those with a crisis and things can get rocky fast. However, dealing with financial hardships and challenging stretches in business life have given contractors and other construction business owners the skills and steadfastness to withstand difficult times.