Competition in construction hasn’t let up. More firms are chasing the same projects, timelines are tighter and cost pressures continue to shift. In that environment, relying on instinct alone can quietly put your margins at risk.
Bidding smarter isn’t about cutting prices. It’s about understanding your business well enough to price work confidently, protect quality and keep your company financially healthy.
1. Know the Profit Margin Your Business Actually Needs
Margins shouldn’t be based on what feels competitive or what others might be bidding. They should be grounded in what your business requires to stay profitable.
That means understanding how much each job needs to contribute to unrelated but important costs, such as reinvestment and owner compensation. Without that clarity, even “busy” years can produce disappointing results.
2. Account for Overhead in Every Bid
Overhead costs don’t disappear just because a project is priced aggressively. Office expenses, insurance, marketing, equipment and administration all need to be covered somewhere.
Creating an annual overhead budget helps translate those costs into job-level pricing. When overhead is consistently accounted for, bids become more realistic and financially sustainable.
3. Plan Labour Based on Real Capacity
Keeping skilled employees working is a priority for most contractors, but it shouldn’t come at the expense of taking on work that stretches your team too thin.
Before bidding, it’s worth asking whether you have the right mix of skills internally and whether existing employees could step into expanded roles. Developing your team supports both operational efficiency and long-term retention.
4. Use Past Project Data to Improve Future Bids
Most bids are built on assumptions. The only way to know whether those assumptions held up is to look back once the job is done.
Tracking costs during a project is critical. You can learn in real-time and also use it for the benefit of hindsight on future projects. Where did labour run longer than expected? Which materials came in higher or lower than planned? What held the job up? Those answers are what sharpen future bids. Over time, they replace guesswork with experience and make pricing more reliable.
5. Put Clear Management Oversight Around Bidding
As construction businesses grow, owners can’t review every detail personally. Having experienced people involved in estimating, project oversight and financial review ensures bids are grounded in reality.
Strong internal processes reduce the risk of pricing errors and provide better insight once work is underway.
6. Lean on Advisors Who Understand Construction
Construction brings unique challenges, from cash flow timing to contract risk. Working with accountants, bankers and legal advisors who know the industry can make a meaningful difference.
Their input can help you evaluate bids, manage financing and make informed decisions, allowing you to stay focused on delivering quality work.
GGFL works closely with construction companies across the Ottawa region to help them build stronger financial insight, improve pricing decisions, and protect long-term profitability. If you’d like to talk through how your numbers can better support your bidding process, we’re here to help.
