How Good Is Your Bidding Process? Grader

JBKnowledge ConTech Report and AGC industry research consistently identify four practices that lift contractor win rates: standardized estimating template or software, professional proposal presentation with clear scope and terms, fast turnaround within prospect-expected window, and disciplined bid follow-up at 48 hours and 7 days after submission. Each compounds with the others; standardizing the bid process is one of the highest-leverage business investments contractors can make.

Construction-industry estimating software includes Buildertrend, CoConstruct (now part of Buildertrend), STACK, ProEst, PlanSwift, On-Screen Takeoff, Sage Estimating, and trade-specific tools. The right choice depends on project type (residential versus commercial), volume, integration needs (project management, accounting), and budget. Most contractors who move from spreadsheets to construction-specific software report meaningful speed and accuracy improvement within 90 days.

NAHB Cost of Doing Business Survey research consistently shows successful residential builders targeting 18-25% gross profit margin on direct construction costs, with general contractors typically 15-22%, and trade specialists varying meaningfully by trade. The specific markup applied to bids depends on the gross-margin target plus overhead recovery; consistent margin discipline across bids is the foundation of profitable scaling.

Construction industry consensus and dispute-resolution data consistently identify unwritten change orders as the single largest source of contractor-customer disputes. A simple one-page change-order form requiring signed customer approval before performing the additional work prevents most of these disputes. The discipline of refusing to perform unwritten change work is one of the most important business practices contractors can adopt; the short-term friction prevents long-term margin loss.

The bidding process grader result page shows your grade alongside the rolling distribution from everyone who has completed it. That gives immediate context, including the median, the top quartile, and the gap between you and each. The most useful number on bidding process is usually the gap to the top quartile, since it sets a realistic ceiling for the next twelve months.

NAHB and AGC industry research consistently identifies the timing as when the contractor is consistently turning away work for capacity reasons, has 6+ months of stable cash reserves to absorb steady payroll commitment, has documented operational processes to onboard new crew effectively, and has the administrative capacity (payroll, workers comp, scheduling) to support employees.

Subcontractors are typically cheaper on a per-hour basis (no payroll taxes, no benefits, no workers comp, no admin) but cost more per output hour because of coordination overhead, less control over schedule, and quality variability.

A general contractor manages construction execution after design is complete (or after an architect is engaged separately) and coordinates subcontractors, scheduling, and permitting.

Commercial build-out costs vary substantially by space type and finish level.

NAHB Cost of Constructing a Home Survey data places typical US custom-home build timelines at 12-24 months from groundbreaking, with additional months ahead for design, permitting, and lot preparation.