Using The Web To Streamline The Bidding Process

As a former builder, I know that, if ever there was an industry ripe for e-commerce technologies, the construction industry is it. Whether you work on 5 or 50 projects a year, there is a plan being formulated, and an online solution being implemented, which will allow builders to manage projects more easily, more quickly, and more cost-effectively.

And the method is amazingly simple - by providing tools for faster communication, as well as a wealth of information that is free, relevant, and surprisingly easy to access, internet companies are rising to the challenge of tailoring a solution built around the needs of the contractor.

Builders have traditionally been early adopters of simple technologies that support their existing business processes while helping them communicate and coordinate better. Many builders and others involved in the construction process, for instance, have adopted computers and e-mail to avoid prolonged voice mail and fax exchanges and improve communication.

Give a general contractor a box full of internet tools, and his first-hand industry experience could very well create a blueprint for alleviating day-to-day business headaches and result in saving hundreds of hours and dollars in each project.

For some, the services that Internet companies provide have become an essential part of the way they do business today.

Requesting bids online

Quick to recognize this potential was Frank York, President of W.L. Butler. An industry veteran, and head of a multi-million dollar construction firm, York has seen the bidding process change dramatically. In the past, estimators at W.L Butler thumbed through a 2-inch-thick binder of subcontractors for soliciting bids. They used telephone and fax as their primary methods of communication-both of which were time-consuming and inefficient. But now, the bidding process is becoming radically more efficient.

The firm now uses our RedLadder service - an automated online construction bidding system.

Here is how York explains the benefits of online bidding: "The internet is now providing a much better, faster way to do business. I can contact a larger number of subcontractors at the push of a button, resulting in more competitive, accurate bids. All this, at no cost to me, and virtually no effort to implement."

The online system enables York to send detailed project information, including an addendum if necessary, via email, providing specific details about the requirements of the job. Subcontractors who don't have email can receive invitations to bid via fax at no charge. Traditionally, architects sent the addendum to the contractor, who was responsible for copying and mailing it to anyone who might be affected. The online system now allows York to download the addendum and quickly email it to all the participants at the same time.

By utilizing a Web-based application in the bidding and estimating phase of a project, W.L. Butler has more direct and effective communication with the subcontractor community, and can dip into a deeper pool of subcontractors. Access to more people ultimately results in a competitive edge.

Such services are creating a seamless world on the Net in which tasks such as estimating and bidding are automated and streamlined, and connectivity between participants in the process is greatly enhanced. For example, instead of faxing hundreds of separate invitations to bid to subcontractors, the general contractor can, at the push of a button, use e-mail to send the invitation to bid to all subcontractors on a predefined, electronic list. Additional qualitative information about the project can be posted to a Web site, where subcontractors can see at a glance if the project makes sense for them.

Using an electronic bidding process can reduce the submittal and selection time by helping contractors uniformly analyze quantitative and qualitative aspects of proposals. This reduces paperwork, shortens review cycles, increases response times, and reduces errors.

To be sure, project specifications will change and subs will submit late bids. But, as the new economy moves at internet speed toward increasing the efficiency and organization of a builder's business, you can be sure to find an impressive smorgasboard of online services neatly tailored to the construction industry and its constituents.

For more information, contact:
Roy Williams
Product Manager
RedLadder.com
San Francisco, CA

Also See:

Williams Discussion