Navigating the Bid Process with a Construction Lobbyist
Navigating the Bid Process with a Construction Lobbyist
Construction firms have a lot on their plate. At Cotney Construction Lobbying, our consultants and lobbyists are here to assist construction companies with a variety of legislative and executive advocacy initiatives. We also help construction professionals create successful construction bids on government projects. If you are interested in working on lucrative government contracts, your firm requires the guidance of knowledgeable professionals who can navigate each stage of this complex and highly regulated process.
Projects for Every Type of Business
Whether they work in commercial or residential construction, most construction businesses obtain the majority of their work through a bidding process. If you’re interested in government-funded projects, you should know that state and federal government agencies collectively spend billions of dollars annually on construction projects. With that being said, developing a winning bid can be an intimidating task for a company with limited experience working on government projects.
Moreover, many construction firms make the mistake of thinking that government work is out of their ballpark. What they don’t know is that construction businesses of all sizes can take advantage of bid opportunities with a variety of government agencies at all levels. In fact, smaller businesses can actually enjoy certain advantages during the bid selection process compared to their larger counterparts.
Enjoying the Benefits of Government Work
Procuring government work offers many benefits. Here are a few of the most common reasons why construction firms get involved with government-funded projects:
- Reliable Work: Government work can be a steady source of income for construction firms. Simply put, agencies can offer a virtually endless supply of contract work. This is true even during times when the country is experiencing an economic downturn. Consistent, long-term projects can provide your business with the stability it needs to be successful for decades to come.
- Career Growth: As if steady, lucrative work isn’t enough to bolster your business model, government work offers contractors the opportunity to tailor a business strategy specific to the needs of federal, state, and commercial construction projects. Business owners can also meet a lot of the movers and shakers within the industry by working on government projects, further strengthening their brand for years to come.
- Timely Payment: When you’re working with a project owner, there’s no guarantee that they will compensate you on time or, in some cases, at all. Fortunately, with government construction work, contractors know they will receive timely payment every 30 days. In other words, there’s no need for demand letters, mechanic’s liens, or other legal devices to seek payment for your work.
Highly Regulated Procedures
Procuring projects from federal, state, or local agencies is a highly regulated process. Most projects take on a sealed bidding process that requires a long list of well-established bureaucratic procedures. Here a little more information on the bid procurement process:
- Time-Consuming Tasks: If you haven’t been involved in the submission procedure before, understand that, in order to create a competitive bid, you will be dedicating a significant amount of time to this process.
- Fundamental Requirements: To be considered, you will need to compile an array of relevant documents and company records. For federal projects, your business should be registered in the System for Award Management (SAM), a government website focused on federal contracts.
- Additional Requirements: For projects with a budget exceeding $100,000, your business will be required to carry construction bonds and proof of insurance. Depending on the government agency you are working with, the requirements and regulations can differ on the federal, state, or local level.
The Importance of Bid Accuracy
Politics and regulations aside, successfully procuring government projects requires a great deal of knowledge and attention to detail. First and foremost, firms that excel at bid accuracy will experience the best possible outcome of the bid process. Bid accuracy is a balancing act of successfully placing competitive bids on projects while not underestimating the direct costs.
Along with providing precise estimates of the construction work, construction firms have to have comprehensive knowledge of a myriad of other factors that determine the final price delivered in a sealed bid package, including actual costs of labor and materials, evaluating other project risks, and the price of equipment that will be utilized on the project. A consultant with Cotney Construction Law can assist your firm with providing effective, accurate bids on projects.
Experienced Professionals in Bid Work
Successful construction firms need to have a firm understanding of the common pitfalls experienced on government projects. For example, as we mentioned above, you never want to bid too low or else you’ll end up losing money on the project. Similarly, firms should never partner with the lowest bidding subcontractors, suppliers, and other vendors on projects, as they may be sacrificing quality. Lastly, firms need to have a firm understanding of where they thrive and create bid proposals that compliment these areas. In other words, a bid proposal should never focus on a service area that you aren’t overly experienced in.
At Cotney Construction Lobbying, our consultants can help you build the right foundation to work on lucrative government contracts. We can help navigate you every step of the bid process from research to the procurement phase. Our professionals also have years of experience in construction and can help you through all phases of a project. With the right knowledge, experience, and resources on your side, your construction firm can improve their bids, procure more projects, and enjoy more success in 2020.
If you would like to speak with a construction industry advocate from Cotney Construction Lobbying, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
Cotney Construction Lobbying, LLC does not provide legal services and any statements made on this website are intended to apply only to non-legal, lobbying services.