Table of Contents Understanding the Importance of Project Review Types of Construction Projects 3...
Updated on 9/18/2024.
The 2021 Infrastructure Bill is a once-in-a-generation government investment in the country’s infrastructure. This Bill will provide roughly $1.2 trillion to state and local governments to upgrade outdated roads, bridges, and transit systems, provide high-speed broadband internet to rural areas, and build and maintain other critical infrastructure. About $550 billion of the bill’s budget will go toward new spending above baseline levels.
The massive funds from the Infrastructure Bill should positively affect virtually every subset of the construction industry. Opportunities for government project owners and contractors will reach unprecedented levels in the coming years. All of these newly created projects mean one thing for owners: competition to find contractors to complete the work. Learn more about the competition created by the Bill and how QuestCDN can help owners and contractors.
Related: Infrastructure Bill: Where's the Money Going?
Where’s the Money in the Infrastructure Bill Going?
Image via Close Up Foundation.
There’s a huge amount of money going to many subsets of the construction industry and related industries to bolster the country’s infrastructure. After all, someone’s got to do the building. This unprecedented influx of funds will necessitate countless offshoot projects across the U.S.
Related: Infrastructure Project Data: Your Key to More Business.
Everything from road resurfacing and airport hangar maintenance to water projects and renewable energy opportunities will spring up. To a project owner, this increase in project supply means a sharp uptick in the work you have available for contractors to bid on. Even so, it also means you’ll have competition to find contractors.
How to Use Competition to Get the Best Bids
According to a report by CBS News, six months after the Bill went into law, the government announced there were 4,300 projects underway. Such an uptick in available work will increase competition for contractors to bid on your projects. Contractors will have their pick of projects, and your project isn’t the only one they’re considering. It’s important for you to find a way to distinguish yourself and your offerings to the best bidders.
Related: 4 Big Reasons Contractors Prefer to Bid Electronically.
The tried-and-true way to find the best bidders and retain a competitive edge over other owners is to advertise your projects digitally. Most electronic bid posting sites have scores of qualified contractors looking for projects just like yours. Advertising your projects where there’s already an abundance of contractors will increase your chances of receiving not only plenty of bids, but proposals of the highest quality as well.
Additionally, digital bidding platforms have built-in software that automatically checks bid documents to make sure every required line is completed. This failsafe reduces the chances of human error, which can in turn reduce the chances of a rebid. Contractors love the simplicity and intuitive features of digital bidding programs. Plus, they love to see projects advertised on such platforms.
Some other features of digital bidding contractors love are:
- Saving on time and money
- Flexibility to make last-minute changes
- Enhanced communication
- Automatic notification of relevant projects
There are even more features contractors love. Since your bidders prefer submitting proposals digitally, it’s important for you to advertise your projects on relevant platforms. Posting projects electronically effectively casts a bigger net and thus positions you in front of the audience most interested and suitable for your projects.
Related: 6 Reasons Why Contractors Value a Virtual Bidding Process.
Finding the Right Contractor
Selecting the right contractor is a critical step in ensuring the success of any infrastructure project. A contractor with the right experience and expertise can make the difference between a project that is completed on time and within budget and one that faces delays and cost overruns. When evaluating potential contractors, it’s essential to consider their reputation, qualifications, and track record in similar projects.
Moreover, the ability to work effectively with local governments and disadvantaged communities is a crucial factor. A contractor who understands the local context and can engage with community stakeholders is more likely to deliver a project that meets the needs of all parties involved. This collaborative approach can also help mitigate potential conflicts and ensure smoother project execution.
By carefully selecting a contractor who meets these criteria, project owners can increase the likelihood of a successful and high-quality infrastructure project.
Challenges in Infrastructure Construction
Infrastructure construction is inherently complex, involving multiple stakeholders, technical challenges, and logistical hurdles. One of the most common challenges is managing delays, which can arise from various factors such as weather conditions, supply chain disruptions, or unforeseen site conditions. These delays can lead to cost overruns, putting additional financial strain on the project.
Quality control is another critical issue, as ensuring that construction meets the required standards is essential for the long-term durability and safety of the infrastructure. Additionally, securing sufficient funding for major projects can be a significant challenge, particularly in the face of competing budget priorities.
Environmental and social impacts are also important considerations. Infrastructure projects can have far-reaching effects on local communities and ecosystems, necessitating careful planning and management to minimize negative impacts. By addressing these challenges proactively, project owners can improve the chances of successful project completion.
Energy Infrastructure Opportunities
The energy infrastructure sector is ripe with opportunities for investment and growth, driven by the increasing demand for renewable energy sources like wind and solar power. This demand is creating a need for new infrastructure, including transmission lines, storage facilities, and distribution networks, to support the integration of these renewable sources into the grid.
The rise of electric vehicles is another significant driver of energy infrastructure investment. As more consumers and businesses adopt electric vehicles, the need for a comprehensive network of charging stations becomes increasingly critical. This presents a substantial opportunity for investment in the development and deployment of charging infrastructure.
Furthermore, addressing legacy pollution and reclaiming abandoned mines are areas where significant investment is needed. These environmental remediation and restoration projects not only help to clean up contaminated sites but also create new opportunities for economic development and job creation.
Key Takeaways
The 2021 Infrastructure Bill is a massive government investment in the country’s infrastructure. Roughly $1.2 trillion will be used to create projects that will repair, maintain, and update infrastructure throughout the U.S.
All the projects created from the Bill will increase competition for project owners to find the right contractors. The best way for owners to beat competitors and find the best bidders is to post projects on digital bidding platforms. Here’s a table summarizing the features and competitive advantages of posting electronically:
|
Digital Bidding Features |
Competitive Advantage |
|
Automatic document checking |
Almost completely eliminates human errors and lowers chances of a rebid |
|
Save time and money |
Contractors appreciate when you help them save time and money |
|
Last-minute changes |
Potentially receive lower and/or more accurate bids |
|
Enhanced communication |
Stay on the same page with your team and bidders |
|
Automatically notify contractors of projects |
Easily advertise your projects |
As a project owner, you can use the competition created by the Infrastructure Bill to find the best bidders. Digital bidding platforms give you the power to spread the word about your projects and attract contractors to bid. Take advantage of the Bill by advertising all of your projects electronically with QuestCDN. Contractors and taxpayers will thank you.
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