Construction Information Technology Blog

How Competitive is it today?

Our business gives us a unique opportunity to monitor what is happening in the construction marketplace. We have recently completed a report about bidding activity and patterns in the construction industry. It will come as no surprise to anyone active in the industry that there has been a dramatic increase in the number of bidders involved in competitive bidding these days.

It is very interesting to actually be able to measure that change and to see how quickly the competitive landscape changed. In our study we looked at over 2000 publicly tendered projects in British Columbia that closed over the last 5 years. We are only part way through 2009 and the average number of bidders has skyrocketed by close to 40% over the 2007 average of 3.2 bidders per project. We regularly see projects with 10 or more bidders. If there is any doubt among purchasers of construction that these are great times to be seeking competitive tenders for their proposed projects, this is proof positive that there is a buyer's market today. For the bidders, the message is also clear - If you really want the work you need to do all that you can to ensure you are getting the most competitive bids you can from your Trades and Suppliers. Online tools like PlanSource preconstruction software tools help give you more time to focus on the details of getting your bid right and will also give you broader reach to make sure you have the best possible Trade coverage included in your bid.