Mistakes to avoid when asking for your construction project quote

By Darren Sperling

Organizing a construction project is always challenging. Whether it’s part of your full-time project manager role or a task that’s been delegated to you, you want to be as successful as possible. Where to start? You have so many factors to consider in your request for quote (RFQ), so many pressures relating to time and budget, and no shortage of information to evaluate. The choice of builder is important. By selecting the right building and construction partner, you make your responsibilities easier to manage and end up with the exact finished product you need. Your path to glory begins by avoiding a few pitfalls that catch so many others.

While access to technology and software tools makes the tendering process easier than ever before, it’s still a process fraught with challenge and the potential to make costly mistakes that wouldn’t become evident until much later. Summit Steel Buildings’ reputation for excellence is built upon working closely with their clients to ensure they get the best possible result out of each and every project. This starts with helping clients avoid making a few common mistakes when they send out their RFQ and when they examine the estimates they receive back. In this article, you’ll learn what to avoid so you can get the most of out finding the right construction team for your next building project.

1. Relying on past projects

Planning a current construction project can benefit from reviewing past ones (if they exist). You’ll have a baseline for both costs and completion time. However, it’s best to remember each project can be remarkedly different so it might not help. Project managers need to understand that one strategy cannot be used to plan every project, even when they seem similar in scope. Your estimate for any new building project will be based on considering its specific requirements independently, with each project having its own unique challenges and obstacles. Project quotes are affected by new business trends, changes in building materials and other economic factors that can vary year-to-year and even more so across decades. The goals and requirements of each project are also going to be unique. Electrical costs, plumbing conditions and other important details will vary depending on the size of the project, its end use and other architectural details. Be prepared that tenders will likewise vary immensely from project to project.

2. Rushing into a decision

Once given responsibility for a construction project, you may face additional pressures, such as deadlines and limited resources – on top of your already busy duties. These stresses not only make organizing your project more complicated but may also lead to mistakes by rushing to get your “to do” list completed. Meeting your existing project deadlines and reporting back to senior leadership increase the potential for mistakes. Not going through the process of getting a minimum of three quotes and analyzing the tenders critically may lead you to the wrong fit. Spending the time on reviewing estimates and choosing the best company for your project is one oof the most important – and cost reducing – steps. It’s not a stage to be rushed considering the implications of making a poor choice. The consequences of failing to do your research and getting the best estimate won’t become visible until the later stages of construction – or possibly once it is too late. To avoid these dangers, invest your time to thorough review each bid (ideally using a numeric scoring system), evaluate with diligence and account for as many contingencies as possible (such as bad weather, delays, material price increases, cost overruns). Finding the right contractor can help prevent or save on costly errors that can be used to overcome other budget issues later on.

3. Construction partners not using the latest technology

Architects and engineers have relied on digital tools for decades to ensure the best-quality results. However, companies adopt new software and innovation at different rates. You want to make sure your construction team is using only the latest design and building management software. Staying up to date in this respect benefits your project in two ways:

• Accountability for accurate numbers. Good metrics mean you can make better decisions and be able to measure your construction progress with insight. Smaller or family-run firms still rely on pencil and paper to do their estimates and calculations. You don’t need inconsistent numbers when you need to provide an update to senior management. You’ll be able to eliminate guesswork to anticipate concerns earlier and be able to report back with much more certainty. Inaccurate calculations and poor decisions early can lead to massive cost overruns and delays later.

• Greater visualization of the completed building. New design software is where innovation really shines. Summit Steel Buildings relies on Building Information Modeling (BIM), a 3D modelling platform for efficient planning and design, and Tekla Structures, which incorporates building materials like steel, timber and glass to its 3D design to generate required 2D construction drawings. Clients can see how the building fits into its landscape and how it will be finished with final décor – and can make any changes in real time. The company has also introduced virtual reality (VR) capabilities so clients can enjoy a walkthrough of the completed project before it begins in a realistic interactive and immersive graphical manner. They don’t have to imagine the size of the space and how traffic flow will work. VR brings the project to life in three dimensions in a way that can’t be comprehended from architectural renderings.

Read about how Summit Steel Buildings incorporates BIM into their projects.

4. Not accounting for changing project requirements

Nearly every project can expect to run into unanticipated complications. From small engineering challenges to larger evolving project goals from above, you need to understand that needs will change and so too will your original estimated costs. Project performance and deliverables need to be flexible as it develops. Fortunately, additional costs associated with one alteration can be offset by intelligent choices to create savings in other areas. It’s one of the benefits of working with an experienced construction team. Your original estimate is a forecast, one that might need to change as the project encounters either internal or external obstacles. Creating benchmarks along the way means contractors and project managers can collaborate more easily and keep spending and costs on track. Ongoing checks back to the original estimate, assisted by steady and clear communication with your contractor team, ensure you’ll be able to report promptly and precisely with senior management.

5. Not focusing enough on procurement cost savings

Project managers focus on total costs; contractors usually consider the price of each individual component. Ordering all the required materials happens long before the building stage begins. Your estimate is going to be prepared well ahead of procurement as well so an experienced builder will understand the materials market and be able to anticipate the cost of materials to yield savings and to prevent overruns. Prices of wood and steel, for instance, fluctuate widely and have increased dramatically since March 2020. Every contractor is going to work with current market prices for their raw materials and then adjust according to where they think prices are headed. The lowest bid on a project now may not be the most accurate later.

A turnkey building partner and component supplier, like Summit Steel Buildings, through experience and wisdom, can actually save you cost on materials (and a lower final price tag) by managing manufacturing and procurement wisely using their data systems. They can make ordering smarter, avoid shortages and get the exact materials you want. Accurate prediction of material requirements helps to control overall costs and potential delays that might occur during construction.

Choosing the right construction partner is fundamental to your success

When sending out a tender for construction quotes, be sure to set aside the time to thoroughly evaluate each one across your full spectrum of project needs. Picking an experienced construction team is critical to your success. The most qualified teams will contribute to your success by prioritizing activities, managing timing, tracking deliverables and providing accurate numbers to help prevent unwanted delays and additional labor costs. Your construction estimate should be precise in detailing all building costs: some companies quote one price for the building solution materials and may or may not include the price of installation and concrete foundation. A good quote should also anticipate market pricing changes and still have flexibility for unexpected engineering or weather disruptions.

The extra time investment at the beginning will prevent delays and cost overruns later down the line. Your building project, and your professional reputation, are at stake so think of the quoting portion of the project as an investment in your own success. We’d love to work with you on your next construction project. Visit our Contact Us page and Summit Steel Buildings will provide you with a free consultation and quote.