Best Construction Bidding Software
Buyer's Guide
From deciphering project specs to managing mountains of paperwork and overcoming fierce competition, the construction bidding process can be complex and overwhelming. Construction bidding software can help you conquer these challenges.
But how do you choose the one that best suits your needs and budget? What’re the key features and benefits you should look for in a bidding solution? This buyer’s guide answers all these questions.
Executive Summary
- Construction bidding software helps construction professionals streamline bidding processes, improve estimating accuracy and make data-driven decisions.
- Some core features to look for in construction bid management software include bid management and analysis, RFP creation, estimating, and project tracking.
- Prepare a list of questions to ask potential vendors to make informed decisions.
What Is Construction Bidding Software?
Construction bidding software is a digital solution that helps contractors, construction professionals and subcontractors streamline construction bidding processes.
It enables you to create and send bid proposals, track and compare submittals, communicate with bidders, award contracts, and monitor project progress.
These programs usually integrate with:
- Construction scheduling tools
- Construction ERP solutions
- Construction estimating apps
- Construction management platforms
- Takeoff systems
Primary Benefits
We’ve highlighted some benefits of implementing construction bid management solutions below.
Improve Efficiency
Construction bidding solutions help you streamline workflows and boost efficiency. Here's how they do it:
- Automation: You no longer have to sift through piles of paperwork. These solutions help you automate manual tasks like document management and bid solicitation and evaluation, saving you time and minimizing errors.
- Centralized Database: Tired of hunting down scattered files and important documents? These tools bring all your crucial data to one secure location.
- Customizable Templates: Ever wished for a foolproof, standardized bidding process? With these apps, you'll have easy-to-follow templates at your fingertips, ensuring consistency and that no detail slips through the cracks.
- Real-Time Updates: Say goodbye to missed deadlines or important updates. These platforms send you real-time alerts about project milestones, bid submissions or any other critical events.
Increase Collaboration
Construction bidding software boosts collaboration in the following ways:
- Collaboration tools enable multiple team members to work on the same bid in real time, ensuring everyone is on the same page.
- Real-time communication and version control capabilities allow you to update and track changes efficiently, preventing confusion and errors.
- Integration capabilities help you sync data from third-party applications like BIM systems, project management platforms and project scheduling tools, creating a seamless workflow.
Improve Accuracy
Construction bid management tools provide built-in cost databases and takeoff modules, helping you avoid common construction estimating mistakes. They also crunch the numbers for you, minimizing human errors.
Enhance Decision-Making
Construction bidding solutions integrate with data analytics tools to help you analyze bid data, assess subcontractor quotes and make informed decisions based on historical project information and performance metrics.
They also enable you to perform what-if analyses to help you assess the impact of changes on project budgets and timelines.
Key Features & Functionality
Construction Companies/Clients
| Bid Discovery Tools | Access databases, networks and platforms to search for potential bid opportunities according to your project criteria and identify projects that align with your expertise and capacity. |
|---|---|
| Bid Management | Send bid invitations to contractors and vendors with just a few clicks. Enable bidders to send proposals via an online portal to streamline the bid submission process. Use bid leveling functionality to evaluate multiple bids side by side. |
| Response Filtering | Automatically screen incoming bids, ensuring a more efficient and standardized evaluation process. Sort bid responses as qualified or rejected based on specific criteria like insurance coverage and union status. |
| Portfolio Tracking | Manage project pipelines to prioritize jobs and address any potential bottlenecks or delays. Monitor upcoming bid opportunities via a centralized dashboard to assess which bids align with your company's capabilities and strategic objectives. |
| Outreach Tracking | Store contractor and vendor communication records to ensure transparency and accountability and resolve disputes easily. Implement follow-up actions to sustain engagement and foster positive relationships with contractors and vendors. |
| Lead Management | Use lead management tools to generate and convert leads. Score leads to prioritize them based on their potential for success. Integrate with CRM systems to efficiently manage and share lead and client information across your organization. |
Contractors
| Estimating | Automate labor, material and equipment cost calculations to produce precise estimates. Use built-in cost databases to set realistic budgets, manage resources and determine competitive bidding prices. Set budgetary targets for each cost category (labor, material and equipment) based on project requirements and financial constraints. |
|---|---|
| Subcontractor Management | Access subcontractor databases to identify and engage with subs who possess specific skills and expertise required for your projects. Monitor and assess subcontractors' performance throughout your project life cycle. |
| Job Costing | Use job costing tools to record and track financial transactions related to a specific construction project. Compare budgeted costs with actual expenditures to determine whether or not a project is on track to meet profit expectations. |
| Project Management | Create project plans, track job statuses and adjust plans as needed to meet milestones. Share updates and files in real time via messaging, automated notifications and document-sharing capabilities. Create risk profiles and develop risk management strategies to address challenges and uncertainties that could impact your project’s success. |
| Inventory Management | Use inventory management systems to track materials, equipment and supplies. Set thresholds and reorder points to maintain optimal inventory levels. Order management apps enable you to manage procurement processes, track orders and ensure timely delivery. |
| RFP Creation | Create detailed and customized RFPs to solicit bids from subcontractors and suppliers. |
Subcontractors
| Takeoff | Perform takeoffs to calculate material quantities and project costs accurately. Scale and calibrate project drawings to ensure precise measurements. Automatically identify and tally specific symbols or components on project drawings to reduce errors. |
|---|---|
| Bid Analysis | Access historical data to analyze your bid performance and refine your strategies for increased competitiveness and success in securing contracts. |
| Compliance and Document Tracking | Submit required documents like permits, licenses, certifications and bid forms in a timely manner. Ensure that all documents are in line with established regulations and standards. |
| Bid Bond Management | Track all your active bids from a centralized dashboard. Set automated reminders for bid bond submission deadlines. Calculate the required bid bond amount based on project specifications and bid values. |
| Bid Security | Ensure bid confidentiality and integrity with features like encryption, user authentication and access controls. |
Software Comparison Strategy
We’ve outlined some steps below to help you select your perfect match.
Identify Your Buyer Type
Different roles — subcontractor, general contractor and other construction professionals — may have varying requirements for bidding solutions.
Determine Your Requirements
Consider factors like your projects’ size and complexity, the number of bids you handle, your budget, and any unique workflow requirements.
Check out our construction bidding requirements checklist to define your needs. You can also access our free requirements templates for the same.
Compare Vendors
Research and evaluate vendors based on your identified requirements. Here's how to do it:
- Make a Long List: Research and identify potential vendors. You can do this through internet searches, industry referrals, or by attending industry-specific events and trade shows.
- Request Information: Reach out to vendors on your long list to request detailed information about their solutions. This may include brochures, whitepapers and any other relevant documentation.
- Request Demos and Trials: Arrange for product demonstrations and trials with vendors that seem promising, gaining hands-on experience with the software to see how it performs in real-world scenarios.
- Ask for References: Contact other construction companies using the solution to gather feedback on their experiences, benefits and challenges.
- Consider Scalability: Evaluate whether the solution can scale with your business. Will it accommodate future growth and larger projects?
- Assess Customer Support: Inquire about the vendor's customer support options, response times and service-level agreements.
- Ensure Compliance: Confirm that the solution complies with industry standards, regulations and any specific requirements in your region.
Choose a Selection Team
Form a selection team with key stakeholders, including those directly involved with the construction bidding solution and those overseeing implementation.
Make the Final Decision
After gathering all necessary information and feedback, convene your selection team to make a final decision. Consider the following steps:
- Evaluate Pros and Cons: Consider how well each option aligns with your defined requirements, budget and long-term goals.
- Establish a Scoring Matrix: Create a scoring matrix or weighted evaluation criteria to assign numerical values to different factors, such as features, cost, scalability, customer support, compliance and other relevant considerations.
- Engage in Discussions: Encourage open dialogue and consider any concerns or insights that team members bring to the table.
- Negotiate Contract Terms: Negotiate pricing, service levels, support agreements and any other contractual details.
- Select the Solution: After weighing the pros and cons, reviewing the scoring matrix, and negotiating contract terms, make the final decision and select the construction bidding solution that best meets your requirements and budget.
- Develop an Implementation Plan: Outline the steps and timeline for integrating the solution into your organization. This plan should consider data migration, staff training and any necessary changes to your existing workflows.
Still wondering where to begin? Check out our Lean Selection process to make informed buying decisions.
Cost & Pricing Considerations
Some pricing factors you should consider include:
- Subscription or Licensing: Understand the solution’s basic pricing model, which can include monthly or annual subscriptions or one-time licensing fees. Cloud vendors often provide subscription-based options, whereas on-premise providers offer perpetual licenses.
- Add-Ons: Some vendors charge extra for advanced functionality, so be clear about what's included in the base price.
- Implementation: Consider implementation costs, including data migration, setup and configuration. This can be a one-time cost that varies depending on the complexity of your needs.
- Scalability: Ensure that the software can accommodate an increase in users or projects without a significant increase in costs.
- Customization: If you require specific customizations to align the software with your unique workflows, understand the customization expenses.
- Support and Maintenance: Determine the cost of ongoing support and maintenance, including updates, patches and technical assistance.
- Training: Training costs can include initial training sessions, ongoing training and the time spent by your staff during the learning curve.
Some vendors offer flexible payment options, such as annual prepayment for discounts, monthly payments or multi-year contracts, to align with your financial preferences.
Before making a decision, perform a cost-benefit analysis to assess whether the software’s benefits, such as time saved and increased bid success, justify its total cost.
The Best Construction Bidding Software
Construction bid management software can add a lot of value to your preconstruction tasks. Check out our analyst-curated list of the top three bidding solutions to jumpstart your search.
Procore
Procore is a full-service construction management software that offers solutions for all aspects of construction management such as preconstruction, project management, training management, resource management, financial management, analytics and more.
Track bid statuses. Source
What It’s Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Bid Request Management | 100 |
| Planroom and Document Management | 98 |
| Analytics and Reporting | 71 |
| Subcontractor Functionalities | 52 |
Pros and Cons
| Pros | Cons |
|---|---|
| Robust document management functionalities | Steep learning curve with complex features |
| Provides centralized storage for easy access | Prevents editing required fields in forms after submission |
| Extensive collection of technical and training resources | Limited interactive tools to edit, markup or sketch documents |
BuildingConnected
BuildingConnected enables general contractors, subs and company/project owners to mitigate risks, track opportunities and manage bids.
Bid leveling helps you identify the lowest bidder, reduce risk and increase transparency.
Access over 1 million subcontractors in its network, view historical cost data and track relationships.
Submit bids to clients with just a few clicks. Source
What It’s Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Bid Request Management | 100 |
| Planroom and Document Management | 99 |
| Subcontractor Functionalities | 82 |
| Analytics and Reporting | 70 |
Pros and Cons
| Pros | Cons |
|---|---|
| User-friendly interface | Limited takeoff capabilities |
| Robust bid leveling capabilities | Requires paid version to forward bid invites |
| Advanced opportunity tracking tools | Expensive compared to other options |
SmartBid
SmartBid is a cloud-based solution that helps construction professionals streamline bidding processes and manage subcontractor relationships.
It enables you to store documents in a centralized location for quick access. It also lets you analyze multiple bids simultaneously, saving you time.
Prequalify subcontractors within minutes. Source
What It’s Best For
| Capability | SelectHub Analyst Score |
|---|---|
| Bid Request Management | 100 |
| Planroom and Document Management | 95 |
| Subcontractor Functionalities | 77 |
| Bid Invitation and Closing Management | 50 |
Pros and Cons
| Pros | Cons |
|---|---|
| Simple implementation | Freezes while downloading large bid packages |
| Fast proposal submission | Limited integrations |
| Easy data input | Poor file searching functionality |
Questions To Ask
Before approaching vendors, you need to determine your company’s requirements. Ask yourself these questions to uncover the same:
- What problems do you expect the software to solve for you and your team?
- Do you need integration capabilities?
- What level of technical expertise does our team possess?
- Are there any specific projects or types of projects that require unique bidding requirements?
- Are there any concerns or reservations about adopting new software?
After assessing your requirements, it's time to learn more about the software and vendor. Here are a few questions you can ask:
- Can you provide references or case studies from other construction firms that have used your software successfully?
- How often do you release software updates and improvements?
- What’s the process for data backup and disaster recovery in case of system failures?
- Is there a built-in bid calendar or scheduling tool?
- Can the software handle multiple project types?
FAQs
Why should I develop a construction bidding process?
You should develop a construction bidding process to:
- Streamline Selection: Create a systematic approach that helps you consider relevant criteria when choosing contractors or subs.
- Improve Assessment and Evaluation: Establish a framework for evaluating contractors based on different criteria, such as qualifications, capabilities and experience.
- Expand Options: Work with contractors who may bring unique skills and perspectives to your projects.
- Maintain Documentation: Keep detailed records for compliance, auditing and transparency.
What are the benefits of using a construction bidding solution for subcontractors and suppliers?
Subcontractors and suppliers can use construction bid management solutions to simplify bid submission processes, enhance communication with general contractors and improve access to project information through vendor portals.
What implementation challenges should I expect?
As you implement a construction bidding solution, you should expect and prepare for some common challenges:
- Change Resistance: Team members who are accustomed to traditional bidding methods may resist the transition to new software. This resistance can manifest as reluctance to learn new tools and workflows. To address this, provide training and clearly explain the reasons for the change.
- Data Migration: If you're transitioning from manual processes or using different software, migrating existing data to the new system can be complex and time-consuming. Plan the data migration carefully to ensure a smooth transition.
- Project Delays: Implementing new software can disrupt ongoing projects, potentially causing delays if not managed properly. To avoid this, schedule the implementation during a less critical project phase or allocate extra resources to handle both tasks efficiently.
- Testing and Quality Assurance: Ensuring that the software functions as intended and identifying and addressing any issues through rigorous testing is crucial but may require additional time and resources.
Next Steps
Managing preconstruction tasks can be challenging, and construction bid management solutions definitely take the edge off. However, with so many solutions available, it becomes difficult to choose the right one.
Don’t worry. We’ve got you covered. You can access our free comparison report to compare multiple solutions and view individual product scores, functional and technical requirements, and user sentiments.
Need further assistance? Don’t hesitate to reach out to us via phone or email mentioned on our website. Good luck!
Product Comparisons
Top 10 Construction Bidding Software Leaders by Analyst Rating (of 48 products)
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