Getting the Best Bids:  It's All in the Timing

As with any industry beholden to the seasons in any way, certain aspects of the construction business have their own unique time-tables. Heeding some of the finer points of the bidding calendar can play a significant role in containing building costs.

Best and Worst Months

According to a recent survey by CTA Architects Engineers, the best months for ob-taining the lowest bids are January, February and March. The worst months for bids are July and August.

The survey showed that differences in timing bid activities influence costs by an average of 7%, ranging from a low of 3% to as much as 15%. The impact may be less in states where the climate is more conducive to year-round outdoor construction activity.

Why the Difference?

Most local contractors try to fill their pipe-lines for the calendar year during the first quarter, scheduling project startups so the buildings' envelopes are enclosed by December, and leaving the interior work for winter.

The CTA survey showed general agreement that material suppliers tend to raise their prices around April or May, which has a definite impact on bids in the summer months. Projects that start late in the year are also subject to the costs of winter effects.

As Beyer's Don Harder, Director of Preconstruction Services explained, going into winter, contractors are typically scrambling to wrap up their work and are not as price competitive. This is especially true among the roofing, concrete and masonry trades. With all the scrambling, it also follows that November and December are not good months for issuing bid documents.

Avoiding Bid Timing Becoming Bad Timing

Kay Wenzel, Purchasing Director for Washington County, knows very well the value of good bid timing. Washington is southern Wisconsin's fastest growing county, with multiple construction projects in progress at all times. 

Unlike school and state government budgets, however, Wenzel explained that county budgets are typically approved in November. That leaves only about a six week window to finalize bid specifications. As Wenzel explained, the county has "been burned" a few times by being late with bid materials, bidding a project in June for startup in late July, for example.

"What I've tried to do is to really stress to our committees and departments that we need to get in sync with the construction bidding season," Wenzel said. "It's one of those things I repeat over and over again. If it's in the budget, get it to whatever committees are needed for approval so we can get it out for bid."

To get the best pricing, it's important to begin planning early enough to fit into the optimum pricing cycle.