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To bid or not to bid? New CCA tool has the answer

Angela Gismondi
To bid or not to bid? New CCA tool has the answer

A new Canadian Construction Association (CCA) bulletin aims to help contractors bid on the right projects instead of wasting time on the wrong ones.

The Bid Go or No Go bulletin is a resource that provides guidance to help navigate the bidding process. It is “designed to help contractors make informed choices that balance potential rewards against inherent risks.”

“Project selection can be a make-or-break decision for a contractor. A poor project choice can have severe financial consequences,” said Rodrigue Gilbert, president of the CCA, in an email to the Daily Commercial News. “The Bid Go or No Go bulletin equips contractors with the insights they need to evaluate projects thoroughly. Asking themselves the right questions from the onset can help them avoid risk pitfalls.”

The bulletin was developed by the CCA’s Trade Contractors National Advisory Council, with insights from the General Contractors National Advisory Council and input from surety professionals.

“Our goal was to create a comprehensive tool that empowers contractors to make informed, strategic decisions about project bids, ultimately enhancing their competitiveness and sustainability in the industry,” said Gilbert.

According to the association, bidding on a project involves not only assessing financial gain but also the evaluation of other factors such as other parties involved, capacity, project financing and contractual risk.

“The Bid Go or No Go bulletin serves as a practical guide for trade contractors, helping them evaluate whether to pursue a project bid,” said Gilbert. “It aims to streamline the decision-making process, ensuring contractors have a clear framework to assess opportunities effectively.”

The bulletin highlights questions every contractor should ask before committing to a bid to ensure all aspects are taken into account.

“Beyond a set of questions or criteria to ask themselves, it also encourages contractors to consider the broader context — to recognize that there are intangibles beyond the scope of the work that can have significant impacts on the success of a job,” said Gilbert.

“Not everything is a dealbreaker, but risk is a commodity and should be priced accordingly. By understanding and pricing risk appropriately, contractors can make decisions that not only safeguard their interests but also enhance project outcomes.”

By reviewing the structured list, contractors can identify and evaluate potential risks early in the bidding process and can price them. It can also foster an informed, team-based approach to decision-making, ensuring all relevant perspectives and expertise are considered.

“As the industry evolves, we are seeing more contractors doing a better job at assessing and pricing risk, as well as deciding whether to bid on projects depending on the risk allocation,” said Gilbert.

“However, some owners have not fully caught up, and that’s part of the reason they are seeing discrepancies in budget expectations and lower participation in bidding.”

The CCA says it can give contractors a competitive edge and give teams the capability to craft more competitive and realistic bids.

“With documents like this bulletin, we hope to bridge the gap, encouraging owners to adopt fairer procurement practices that balance risk and ensure reasonable payment timelines,” Gilbert said. “This will ultimately lead to healthier project dynamics.”

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