As a general rule of thumb, you want to avoid projects with five or more electrical contractors bidding the electrical scope of work. As the number of electrical contractors increase, your chances of winning go down, while the risk of taking a bad project goes up significantly. You wouldn’t want to be the low price out of 10 electrical contractors, would you?
How to Navigate the Electrical Bidding Process
The bidding process for electrical contractors is time-consuming and resource intensive. Many electrical contractors receive an overwhelming number of bid requests from general contractors that they do not have a working relationship with. On one hand, this is great—it creates opportunity to expand your business network and win electrical projects you might not have known about otherwise.
But consider this first, the electrical estimating process can take weeks of hard work for an electrical estimator to determine the cost of a project and submit a bid to a general contractor. Because of this, you need to first consider how likely you are to win and successfully complete an electrical project before you dedicate the time to begin the estimating process and submit a bid price. One best practice in this decision phase is to ask yourself “What kind of relationship do I already have with this general contractor?” If the answer is that you have a great relationship and work history with them already, there’s a higher likelihood of success winning and completing the electrical project successfully, meaning the bidding process is worth your time. If the answer is that you have a nonexistent relationship with the general contractor, you may want to avoid spending time estimating the project and move on to your next bid invitation or use this as an opportunity to develop the relationship knowing that it might take a few bids before you receive an award.