Recently, we’ve talked about how to tackle bid day like a pro. We’ve also discussed how to improve your relationships with the subcontractors that you work with. But what happens when you’re not receiving any bids from subcontractors at all?
Bid day is already stressful enough as it is. In a typical bid model—in which a handful of general contractors are selected by the project owner to compete against one another for the project contract—it’s highly likely that your company won’t have many differences, if any, from your competitors. As a result, the only way for a general contractor to stand out is to find the lowest possible number to present to the project owner. And how do you make that happen? You’ve got to make sure you’re getting bids from subcontractors that make sense in the context of your estimate. And if you’re not receiving those bids, your bid day has now become ten times more stressful.
Why Wouldn’t Subcontractors Send in Bids?
Communication & expectations are key to getting more bids from subs.Before you can get to the solution, you’ve got to understand the root of the problem. Perhaps the biggest reason that subcontractors will stop sending in bids is communication or lack thereof. When you reject a bid, it might be easy to only give a brief reason for your decision or to simply omit it altogether. But this leaves a subcontractor in the dark. They don’t know what they did wrong, and they can’t correct their mistakes without hearing what they were from the preconstruction team.
Speaking of communication, your bid review is also a major aspect of making sure that subcontractors will want to send in bids. Gradlin Franks, who served as The Beck Group’s Regional Safety Manager for several years and is currently their Director of Diversity and Inclusion, shares that it’s critical to provide subcontractors with a bid review checklist so that they know they’re including items that you and your team will be looking for instead of making an educated guess and hoping for the best.
Finally, another significant reason that could be motivating subcontractors not to work with you: not paying on time. At the end of the day, everyone has ends to meet and bills to pay, so timely payment is key—especially when many subcontractors struggle with getting paid at all, much less on time. If you find yourself paying subs weeks or even months later for work they’ve already done, and another contractor pays them ASAP, they’re most likely going to choose to keep doing business with the company that they know they can rely on.
So, What Can You Do?
First and foremost: obviously, communication is key. However, don’t think of it purely in terms of constructive feedback. Yes, subcontractors want to know what they’ve done wrong, but they also want to know what they’ve done right as well. Improving work isn’t just about correcting mistakes—it’s also about continuing to build upon foundations. Feedback doesn’t need to be complicated, either. It’s as simple as a quick phone call or email after receiving and evaluating all of your bids.
Don't forget about building relationships with your local and regional subcontractors!While communication is important, you also need to make sure that you’re building local relationships and advertising projects for which you’ll need subcontractor bids. Gradlin notes that The Beck Group has established strong relationships with the Minority Contractors Association, so they advertise their projects with regional Asian, Black, and Hispanic subcontractors, as well as the Women’s Business Enterprise. If your projects aren’t resonating with the subcontractors you’re targeting, it may be time to re-evaluate and determine if you’re reaching the right people. Gradlin says, “Know your audience, know where they go to get their opportunities and who they’re going to for opportunities.”
Last but certainly not least, be sure to be as timely as possible, not just when it comes to payment but when it comes to any decision you make that will involve the subcontractor. While constructive feedback is still very crucial in establishing continuing relationships with subs, the first thing a subcontractor needs to know right away is whether or not you’re moving forward with them so they can move on to the next project. Keep in mind that your company may only have a few bid days a year, whereas a subcontractor is typically juggling several different projects at once.
