6 Bidding Challenges Faced by Contractors (And What Can Help)

The days leading up to a project bid can be some of the most stressful for contractors. Finalizing numbers, cross-checking subcontractor quotes, and ensuring all scope elements are covered often happen under intense pressure—especially during peak estimating seasons. For many in the construction industry, late winter through early spring is among the busiest periods for preparing and submitting bids.

According to the U.S. Chamber of Commerce Commercial Construction Index, 91% of contractors report moderate to high levels of concern about cost fluctuations and scheduling disruptions during peak seasons. With tight timelines and labor constraints, this high-stakes environment can lead to costly miscalculations.

Below are six common pain points contractors may face when bidding on projects.
 

2. Managing Workflow During Bidding Season

Bidding often happens alongside active projects, stretching teams thin. Estimators and project managers may be juggling multiple bids while still overseeing ongoing work, increasing the risk of errors or rushed decisions.

What can help:

• Establish clear bid‑review processes and deadlines

• Limit the number of bids pursued at one time

• Use standardized checklists to reduce rework

2. Incomplete or Vague Project Drawings

Missing details, unclear specifications, or last‑minute revisions can make it difficult to price jobs accurately. Contractors may feel pressure to guess — or pad bids to protect against unknowns — which can affect competitiveness.

What can help:

• Submit RFIs early when information is unclear

• Document assumptions directly in bids

• Review drawings collaboratively with estimators and field leaders

3. Price Volatility and Material Cost Uncertainty

Fluctuating material costs and supply‑chain disruptions make it harder to lock in pricing. A bid that looks profitable on paper may quickly lose margin if prices rise unexpectedly.

What can help:

• Build contingencies into estimates when appropriate

• Maintain strong relationships with suppliers for updated pricing

• Clearly define escalation clauses in contracts

Learn more about managing financial risk in construction from industry guidance provided by the Associated General Contractors of America (AGC).

4. Competitive Pressure to Lower Prices

Contractors often feel pressure to reduce pricing to win work, even when margins are already tight. Over time, consistently underbidding can put strain on cash flow and crew morale.

What can help:

• Focus on bidding jobs that align with your expertise

• Understand your true costs — labor, overhead, and risk

• Avoid pricing work below sustainable levels

5. Evaluating Risk in Every Bid

Every job comes with unique risks — from site conditions to subcontractor performance. Failing to account for these factors during bidding can lead to costly surprises later.

What can help:

• Conduct formal risk reviews as part of bid preparation

• Evaluate subcontractor reliability and scope clarity

• Consider insurance requirements and coverage needs early

The Federal Motor Carrier Safety Administration (FMCSA) and OSHA provide broader guidance on safety and risk management principles that also apply to construction environments here.
 

6. Time Pressure and Tight Deadlines

Bid deadlines often leave little room for thorough review, increasing the likelihood of missed scope items or calculation errors.

What can help:

• Create internal bid timelines that allow review before submission

• Assign clear roles for estimating, review, and approval

• Use estimating tools and software to improve efficiency

Bidding with Confidence

Bidding jobs will always involve some level of uncertainty — but preparation, consistency, and informed decision‑making can help contractors reduce risk and protect profitability.

By recognizing common bidding challenges and taking steps to address them, contractors can pursue opportunities that align with their capabilities while building a stronger, more sustainable business.