PRECONSTRUCTION GUIDE
Bid or no-bid? A decision scorecard for general contractors
Every bid costs estimating time, and every job you win uses people you cannot give to another job. A bid/no-bid decision made the same way each time protects both. This guide gives you a weighted scorecard, the triggers that should end the discussion, and a way to check your decisions against results.
THE SHORT ANSWER
Before estimating starts, score the job 1 to 5 on strategic fit, client, competition, documents and risk, capacity, margin and relationship value. Weight the factors that matter most to you. Decline if any hard no-bid trigger applies, whatever the score. Record the decision and the reason, and compare them with win/loss results every quarter.
THE SCORECARD
Seven factors, weighted
Score each factor from 1 (poor) to 5 (strong), then multiply by its weight. These weights are a starting point. Change them to reflect your strategy, then keep them fixed long enough to learn from.
| Factor | What to ask | Weight |
|---|---|---|
| Strategic fit | Is this the type, size and location of work you want more of? | ×3 |
| Client | Do you know the owner or GC? Do they pay on time and treat contractors fairly? | ×3 |
| Competition | How many bidders, and does the award favor lowest price or best value? | ×2 |
| Documents and risk | Are drawings and specifications complete? Are contract terms, schedule and liquidated damages acceptable? | ×2 |
| Capacity | Do you have the estimators to price it and the people to build it on that schedule? | ×3 |
| Margin | Is there a realistic path to your target margin at a winning price? | ×2 |
| Relationship value | Would winning, or even bidding well, lead to more work with this client? | ×1 |
WORKED EXAMPLE
Scoring one job
An illustrative job: a mid-size commercial fit-out for a developer you have worked with once, with four other bidders and a tight but workable schedule.
| Factor | Score (1–5) | Weight | Weighted |
|---|---|---|---|
| Strategic fit | 4 | ×3 | 12 |
| Client | 3 | ×3 | 9 |
| Competition | 2 | ×2 | 4 |
| Documents and risk | 3 | ×2 | 6 |
| Capacity | 4 | ×3 | 12 |
| Margin | 3 | ×2 | 6 |
| Relationship value | 5 | ×1 | 5 |
| Total | 54 of 80 |
The maximum is 80 (a score of 5 on every factor, times the total weight of 16). At 54, about 68% of the maximum, this job sits just above a two-thirds threshold. A reasonable decision is to bid, while watching the competition score.
HARD STOPS
No-bid triggers that override the score
- You cannot meet the bid, bonding or insurance requirements.
- The schedule is impossible with the people you have.
- Contract terms shift risk you cannot price or insure, such as uncapped liquidated damages or broad indemnity you would not accept.
- The documents are too incomplete to price responsibly, and the owner will not clarify.
- The client has a history of non-payment or disputes with you.
- The work is outside your licenses or trades.
RECORD AND REVIEW
Make the decision reviewable
- Record the score, the decision, who made it and the reason, including for jobs you decline.
- For jobs you bid, record the outcome and, if lost, a loss reason from a fixed list.
- Each quarter, compare scores with results. If high-scoring jobs are lost on price, check the competition and margin factors. If low-scoring jobs you bid anyway rarely win, raise the threshold.
- Adjust the weights deliberately, and note when you changed them.
The bid/no-bid decision is stage three of the construction sales pipeline. Loss reasons from closing out lost bids are what make the quarterly review work.
AFTER A “GO”
From decision to estimate
A go decision should pass what you learned straight to the estimator: the risks you scored, the scope questions and the decision date. In QuotaPartner, estimates are versioned and created from the construction opportunity, so they keep that context through the bid and contract. QuotaPartner does not include a bid/no-bid scorecard today, so use this one alongside it or on its own. See how QuotaPartner handles preconstruction.
COMMON QUESTIONS
Frequently asked questions
What is a bid/no-bid decision?
It is the point, before estimating starts, where a contractor decides whether pursuing a job is worth the cost of pricing it and the risk of winning it. Making it the same way every time turns a gut call into something you can review.
Who should make the bid/no-bid decision?
Usually the person who owns the pursuit brings the scorecard, and leadership or the chief estimator decides. The decision and its reason should be recorded, not just discussed.
What score means go?
Set your own thresholds and adjust them after reviewing results. A common starting point is to bid above about two-thirds of the maximum, review the middle band case by case, and decline below about half. Hard no-bid triggers override any score.
Should we ever bid a job we expect to lose?
Sometimes, for example to build a relationship with a new owner. If so, record that reason, limit the estimating effort, and review whether it actually led to more work.