One way that subcontractors can get more construction leads is to get on project bid lists. These bid lists provide subs with information on projects that are up for bid and searching for sub bids. It’s a great way to get leads sent to you instead of spending time searching for them.
The question is, how can subcontractors get on these bid lists to find potential projects accepting bids? Here’s a shortlist of five proven strategies that work.

Five ways subcontractors can get on more bid lists

1) Networking

Everyone knows that in this industry, it’s not what you know but who you know. You also already know the value of networking for your business, so we’re not going to waste time discussing it. The key is knowing where to network to get the most bid opportunities.
The best organizations to join are your local contractors’ associations, bid exchanges, and the industry organizations specific to the type of work you perform. Contractors’ associations and bid exchanges offer more benefits than just bidding opportunities, so being a member of these organizations is a valuable investment when you are trying to build relationships. Membership in industry organizations provides a sense of authority to your business, which could mean you get more opportunities.
Attending industry conferences is another great way to meet potential clients. Attend general construction industry events, as well as those geared to your particular work. Take the time to get to know some of the attendees, whether it’s over lunch or drinks after the conference. Make sure you have plenty of business cards to hand out.

To learn more about PlanHub’s full selection of game-changing networking tools, sign up for a free demo today!

2) Online presence

The more places your business is listed online, the easier it is for potential customers to find you. Now, this doesn’t mean you have to have an account for everything and purchase advertising everywhere. However, having some key listings is essential to be found on the internet.
Let’s start with a company website. It doesn’t have to be complicated or flashy, but you need to update it on a regular basis. To be found by search engines, you’ll want to ensure you have some key terms on your site. These terms may include your company’s name, the type of work you do, and your service area.
List your company with as many online directories as you can. These directories, like YP, Yellow Pages, and DEX, allow you to list your company and purchase advertising if you’d like. Although phone books have mostly gone extinct, listing in these directories is still crucial as it boosts your online presence, which improves your chances of being found online.
Social media is a popular way for contractors to advertise their business. You don’t have to purchase advertising, but you should use the platforms to share news about your company and work. You don’t have to be on every platform, but Facebook and LinkedIn are the best for businesses looking for potential customers.

3) Reverse trade shows

Reverse trade shows are events organized by large organizations looking for vendors to work with them. Sometimes, these shows are geared just for construction opportunities. They are often hosted by schools, universities, and other large multi-site companies and institutions. These shows are a great way to meet potential new clients and get in front of key personnel.

4) Vendor prequalification

Large organizations, primarily public entities like cities, schools, and universities, often have open prequalification periods for contractors who want to work with them. You’ll be asked to submit an information packet about your company, including past project experience, references, bonding capacity, and team resumes. Once approved as a vendor for these organizations, you’ll be on the list to hear about new opportunities as they are released for bids.

5) Bid sites

Online bid sites like PlanHub are a great way to find subcontractor bidding opportunities. When you register for these sites, you enter your company information, as well as information on the geographic areas you serve, the scope of work you provide, and the size of projects you’re interested in. Once you’ve entered this information, you can wait to be contacted or search for open opportunities on the site.
Bid sites are an excellent idea for gaining more opportunities because they provide your company with another online presence, which means you’ll show up higher in search results.

Securing a spot on contractors’ bid lists is a crucial step for any subcontractor looking to expand their opportunities and grow their business. By implementing strategic approaches to join construction bid lists, such as networking, showcasing expertise, and maintaining a strong online presence, subcontractors can enhance their visibility and reputation in the industry. Understanding the dynamics of the construction bid list and consistently refining your approach can significantly increase your chances of being included in the bid list for construction projects. By staying proactive and continually seeking new opportunities, subcontractors can remain competitive and relevant in an ever-evolving market.

Ready to take your business to the next level? Sign up with PlanHub today to get more high-quality construction leads and networking tools.
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What is Builders Risk Insurance?

Builders risk insurance, also called course of construction insurance, protects buildings while they are under construction. It usually applies to new buildings, and it helps mitigate the risk of certain property damage while a project is under construction. It’s used exclusively on privately funded projects since public projects are self-insured by the government.

Builders risk insurance coverage covers damages to materials, supplies, and equipment from the time they are in transit to the job site until the project is completed by the builder. The property owner or contractor is reimbursed the cost to replace damaged materials and equipment if a covered event should happen. Soft costs like lost sales, rental income, and loan interest may be covered if they are specified in the policy.

Builders risk covers damages caused by fire, lightning, hail, acts of God, impact by vehicles or aircraft, vandalism, burglary, or building or land collapse.

Exclusions to builders risk coverage include employee theft, war, and terrorism, wear and tear of the building material, rust and corrosion of the construction material, poor design or workmanship of the building material, temporary properties, debris removal, and pollution cleanup. If a project needs coverage for one of these excluded incidents, it can generally be purchased as an add-on to the builders risk insurance policy.

General liability insurance, which all contractors must have, covers the damage and loss of a contractor’s tools and equipment due to natural events, theft, vandalism, or fire. Builders risk policies cover the materials and equipment that will be installed in the project.

Should you buy builders risk insurance?

Because builders risk covers the entire project, it can be purchased by any of the parties involved in the project. Owners often have the most to lose, so they will often purchase a builders risk policy and add the general contractor and subcontractors to the coverage.

If an owner is constructing a new building and doesn’t have any current property protected by an insurance policy, it may be less expensive for the general contractor to purchase coverage. Of course, the contractor can ask the owner to reimburse them for the cost.

If an owner is remodeling or renovating an existing building on which they already have property insurance, construction is usually covered by their existing policy. In this case, a builders’ risk policy is not required. Owners should check their property coverage to ensure that it provides the necessary coverage for their construction project in case of any construction site hazards and mishaps.

Other ways to protect yourself

General contractors and subcontractors can ask the owner to provide builders’ risk insurance on private construction projects. Since everyone on the project is covered by the policy, it doesn’t matter who purchases it. Remember that builders’ risk is not necessary in remodel or renovation projects. As part of risk management, it would also be beneficial to instill construction safety tips in the workers prior to starting the job.

Another type of policy, called an installation floater, covers small projects usually performed by a subcontractor. These can be used to cover small remodel or renovation projects that may not be covered by general property insurance. While subcontractors usually purchase installation floaters, a general contractor can provide it when necessary.

Builders risk and other insurance policies protect general contractors, subcontractors, designers, and project owners from losses that may damage a construction project. Having the proper insurance on a project is key to mitigating risk, which contractors must do on a daily basis. No matter who purchases the policy, it’s important to have protection to avoid added costs due to damage during construction. Using construction bidding websites like PlanHub will give you access to general contractor software free and will help in the construction contractor process.

Who Needs Builder’s Risk Coverage?

Any person or company with a financial interest in the construction project needs builder’s risk insurance. Some common people you may want to include on your policy as insureds include the:

• Property owner
• General contractor
• Subcontractors
• Lender
• Architects

How Much Does Builder’s Risk Insurance Cost?

Every builder’s risk insurance policy is different, so costs vary depending on what you need. Your policy may need more coverage or you may need to add extensions to help protect your construction project. Generally, your builder’s risk insurance cost depends on the:

• Construction materials
• Type of project
• Policy details, like coverage amounts and limits

A good rule of thumb is to choose coverage limits equal to the anticipated cost of construction. If your construction project is expensive, it could result in a higher insurance rate.

What Does Builder’s Risk Insurance Cover?

A builder’s risk insurance policy helps protect your construction projects from certain kinds of property damage. It can also help cover additional soft costs or expenses not directly related to construction if property damage causes a delay. This can include:

• Lost sales
• Rental income
• Additional interest on loans
• Real estate taxes

When Should Builders Risk Insurance Be Purchased?

Builders risk insurance should be purchased before construction begins to ensure coverage is in place from the very start of the project. This type of insurance protects the project from risks such as fire, theft, vandalism, and natural disasters during the construction phase. Ideally, the policy should be active from the moment materials are delivered to the site or construction work commences, and it should remain in effect until the project is completed and accepted by the owner. In some cases, the responsibility for purchasing builders risk insurance falls on the project owner, while in other instances, the general contractor may be required to procure it. It’s crucial to have this insurance in place before any work begins to avoid gaps in coverage that could leave the project exposed to financial risk. Additionally, lenders often require proof of builders risk insurance before disbursing funds for construction, making it an essential step in the project’s initiation phase.

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PlanHub recently wrapped up its participation at the Advancing Preconstruction 2024 event in Denver, Colorado, with resounding success. The event served as a platform for PlanHub to showcase  our innovative solutions and engage with industry professionals. Here’s a brief recap of the event:

Panel Discussion: PlanHub hosted a panel discussion titled “How to Simplify Preconstruction Through Networking,” featuring CEO Ro Bhatia, Ryan Conlan, and guest speakers. Attendees gained valuable insights into overcoming challenges in the construction industry.  PlanHub extends gratitude to all attendees, management, and staff for making the event a success. Special thanks to Devin Sherman, Michael Budd, Brad Tatum, and others for sharing their  knowledge with us.  

Networking: From our Networking Breakfast event to all of our conversations with attendees and peers at our booth and on the convention floor, PlanHub happily connected with contractors from all over the country throughout the three-day event. The interactions were enriching, with attendees sharing their experiences and challenges in the industry.

Platform Features: CEO Ro Bhatia and Ryan Conlan, Director at PlanHub highlighted PlanHub as the #1 Preconstruction Tool for General Contractors, emphasizing its features such as finding and evaluating subcontractors, streamlining project workflows, and filling project pipelines with the right opportunities.

Looking Ahead: As PlanHub continues to empower the construction industry, we  inviteprofessionals to explore our platform with a free demo. Take a look and see why our platform was the talk of the town in Denver!

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