4 Big Reasons Contractors Prefer to Use Electronic Bidding

4 Big Reasons Contractors Prefer to Use Electronic Bidding

Electronic bidding on all kinds of construction projects has exploded in popularity during recent years. With the digitalization of almost every part of the construction industry, it’s no surprise that contractors prefer to bid electronically. Great benefits await contractors who choose to bid electronically. Let’s get into them!

Digital construction bidding first began catching on in the early 2000s and gained critical mass in the 2010s. Project owners and bidders realized the need for a faster, easier way to post and manage bid proposals. After the COVID-19 pandemic severely limited face-to-face meetings, most contractors fully embraced digital bidding. Electronic construction bidding eliminates many of the common problems that have plagued busy contractors for generations. Here are the 4 biggest reasons for which contractors love electronic bidding systems:

Communication is one of the most important parts of the bidding process. Without effective and efficient dialogues, nothing can get done. Before electronic bidding, contractors and their teams struggled to pass information along; at least, doing so quickly was a challenge. It was difficult not only for bid coordinators to communicate with estimators, but also for estimators to get in touch with distributors. Plus, there were instances of miscommunication and incoordination resulting from human error that were harder to avoid.

Electronic bidding significantly reduces problems with communication. Most digital bidding platforms have chat rooms and instant messaging features embedded in them, which are easy to access and reference. This feature encourages team members to communicate and ask questions while ensuring no information is lost or difficult to find. All conversations can be accessed with a few clicks. Every team member can receive tasks, updates, and record information easily and accurately with electronic bidding.

Paper bidding is notorious for taking huge chunks of time to complete. You have to keep up with a flurry of documents, fill them out by hand without making any mistakes, check and recheck, then collect all those papers to seal the bid and turn it in at the appropriate office. And that’s another thing: the drive times associated with paper bidding are literal wastes of time and money.

Electronic bidding takes the hassle out of completing proposals. There’s no need to drive anywhere or keep up with endless documents. Everything is digital, meaning nothing can be lost and is easily accessible. Additionally, last-minute changes can be made to bid proposals in a flash, potentially increasing the chance of winning projects. Moreover, technology often has safeguards to account for erroneous entered information.

3. Automatic Project Notifications

Back in the day, the only place projects could be advertised was in the newspaper (and perhaps by word of mouth). Since access to potential projects was so limited, the burden was on contractors to find work. Imagine how many projects contractors missed because they didn’t have time to sort through newsprint. Wouldn’t it be nice to be notified of relevant projects automatically?

Good news: electronic bidding makes the possibility of being notified of new projects a reality. Automated bidding platforms such as QuestCDN give users the option to sign up for automatic email alerts when relevant projects are posted on the website. Users can pick the criteria such as project location, and email frequency is adjustable as well.

With automatic notification features, it’s unlikely contractors will miss projects they’re interested in. Plus, you may even come across projects in which you develop a newfound interest or see previously undiscovered opportunity. Gone are the days of not knowing if you’re being notified of the best projects. With project notifications an option, it’s no wonder why contractors prefer to use electronic bidding.

Winning projects ensures a steady stream of work for contractors. Contractors who bid without the aid of an electronic bidding system are rolling the dice and taking unnecessary risks. There’s a substantial risk of losing out on projects for contractors who don’t bid electronically. These days, it’s a competitive disadvantage not to utilize e-bidding platforms.

Contractors who bid electronically receive substantial benefits that can help them win more projects. Communication between team members is enhanced with digital bidding, which increases the chances of accurate bidding and limits coordination errors. Technology helps contractors make more accurate bids that can give them an edge over competitors. With automatic project notifications, it’s easy for bidders to get a jump on competitors and have more time to make the best bid possible. Plus, making last-minute changes to proposals is no big deal with electronic bidding.

Bonus: Government Can Save Taxpayer Money

This reason doesn’t seem to have anything to do with contractors, but you’ll see how it can benefit them in a moment. As previously stated, electronic bidding makes it easier for contractors to submit accurate bids and make last-minute pricing adjustments. This digital feature is huge for government project owners because they tend to receive lower proposal totals when it’s easier for contractors to accurately bid.

By receiving lower bid totals, taxpayer money can be saved. Imagine a distributor notifies a contractor who doesn’t bid electronically of a lower quote on materials. If the contractor has already turned in their sealed paper proposal, there’s nothing they can do. The total is what it is, which can cause the contractor to lose the bid and taxpayers to pay more for the project. But electronic bidding enables the contractor to go in and change the amount, lowering the total and increasing their chances of winning the bid.

Key Takeaways

Electronic bidding is the best way to complete and submit bids. Contractors benefit immensely from digital bidding. Four huge benefits include:

• Enhanced Communication
• Fast and Accurate Bidding
• Automatic Project Notifications
• Win More Projects
• Bonus: Government Can Save Taxpayer Money

Here’s a table contrasting traditional bidding with electronic bidding:

These days, savvy contractors prefer to use electronic bidding. There are multiple benefits for them (4 of which are listed above), and there’s a huge benefit for government project owners and taxpayers. With all of this in mind, there’s no surprise contractors prefer to use electronic bidding.