Why it matters: the cost of a bid
24 hours per bid at a $60 burdened rate is $1,440 per bid. At a 15% hit rate, each win carries about $9,600 of estimating cost; at 25%, about $5,760. Use your own figures. Raising hit rate on the same volume of work cuts this as much as cutting hours.
What to weigh
| Criterion | Questions to ask |
|---|---|
| Fit | Type, size, scope and region you build well and profitably |
| Customer | Payment history, change order handling, retainage practice, whether they award fairly or use subs for pricing |
| Competition | Number and names of bidders; public low-bid versus negotiated or best value |
| Documents | Completeness, clarity, design stage; a "bid set" at 50% DD is a different risk |
| Contract terms and risk | Indemnity, liquidated damages, pay-when-paid or pay-if-paid, no-damage-for-delay, warranty length, escalation terms |
| Bonding and cash flow | Single and aggregate bond limits, retainage, payment cycle |
| Capacity | Estimator hours before the due date; field crews and PM during the build window |
A scoring sheet
Turn the criteria into a weighted score: each criterion gets a weight and a 1–5 score. The value is consistency. The same project gets the same answer regardless of who reviews it or how busy they are.
| Criterion | Weight | Score | Weighted |
|---|---|---|---|
| Fit | 25% | 4 | 1.00 |
| Customer | 20% | 3 | 0.60 |
| Competition | 15% | 2 | 0.30 |
| Documents | 15% | 4 | 0.60 |
| Contract terms and risk | 15% | 3 | 0.45 |
| Capacity | 10% | 5 | 0.50 |
| Total | 100% | 3.45 of 5 |
With a go threshold of 3.5 and a discussion band of 2.8 to 3.5, this project goes to a short discussion: competition is the weak point, so the question is whether you know the bidder list.
Vetoes override the score
- Bonding: the job exceeds your single or aggregate bond limit. Federal construction contracts over $150,000 require performance and payment bonds under the Bonds statute (formerly the Miller Act); many public owners have similar rules. Small firms may qualify for SBA-guaranteed bonds on contracts up to $9 million non-federal and $14 million federal.
- Contract terms: unacceptable indemnity, uncapped liquidated damages, or pay-if-paid where enforceable and the owner's financing is doubtful.
- Capacity: no estimator can do it properly by the due date. A rushed bid is the most expensive kind.
- Licensing or prequalification you do not hold in that jurisdiction.
Making the decision quickly
Bid/no-bid should take minutes, not hours. When an invitation arrives, scan scope, size, due date, customer, bidder list and contract terms; score it; assign an estimator or decline. Declining promptly with a short note keeps the relationship intact and frees time for better opportunities.
Learn from results
- Record the score for every opportunity, including declines with the reason.
- Record the outcome: won, lost, declined, and margin on won jobs at closeout.
- Review quarterly: do high scores win, and do won jobs make money?
- Adjust weights based on what actually predicts good work.
Track hit rate by customer. Some GCs award fairly; some use subs mainly for pricing. A customer you have bid 20 times without a win is telling you something. Ask for bid results where the owner publishes them; public bid tabs show where you landed.
Signals that usually deserve a yes
- Repeat customers with good payment and fair change order practices.
- Scopes that match your best crews and recent profitable jobs.
- A short bidder list or a negotiated opportunity.
- Enough estimator time to do the bid properly.
Learning from declines
Over time the decline log shows whether declines are strategic (wrong scope, poor terms) or forced (no capacity). Many forced declines on good work is a signal to add estimating capacity or speed up takeoff.
Bidding to grow
Sometimes it is worth bidding a low-scoring project: a new customer, a new market, or a project type you plan to enter. Mark these as strategic in the log so their results are judged differently and the extra effort is a deliberate investment.
Where RenderDraw fits
Faster takeoff changes the capacity line: when measuring takes less time, fewer good bids are declined for lack of estimator hours. RenderDraw's AI takeoff proposes quantities with sources for estimator review. Test it on a bid you already priced with a free sample takeoff. For tracking invitations, see the bid board template, and steel fabricators can read the bid/no-bid guide for steel fabricators.
