mowr insights

The Importance of Knowing the Scope of Work in Large Contract Bidding

Introduction

Bidding on large contracts is both an art and a science. It requires a keen understanding of not only the physical work to be performed but also the intricate details that can significantly impact project success. As someone who has worked with diverse vendors across various industries—oil refineries, manufacturing, waste water systems, pulp and paper mills, and security firms—I have encountered the complexities firsthand. In this article, we’ll quickly explore why comprehending the scope of work is crucial and how overlooking certain details can lead to costly consequences.

The Devil in the Details

1. Time Vampires

When bidding on large sites, it’s easy to focus solely on the obvious tasks: construction, installation, or maintenance. However, the devil often hides in the less conspicuous aspects. I love the term—“potential time vampires.” These are the small, seemingly insignificant tasks that, when multiplied across an entire season, can drain profitability. For instance:

• Employee Sign-In: Secure facilities often require individual employee sign-in, which can consume valuable time—15+ minutes per person per day depending on lineups. If this time isn’t factored into the bid, it nibbles away at profits consistently.
• Documentation and Reporting: Compliance paperwork, safety logs, and progress reports may seem mundane, but they add up. Failure to account for these administrative tasks can erode margins.

2. Equipment and Material Requirements

Bid preparation involves more than just estimating labor costs. Equipment and material requirements play a pivotal role. Consider the following scenarios:

• Poly Blades for Oil Refineries: Missing the memo that oil refineries demand non-sparking poly blades could be disastrous. Ignoring this detail might lead to costly delays or even safety incidents.
• PPE for Industrial Sites: Sites don’t provide hard hats and PPE; you’re responsible for ensuring your crew’s safety gear. Overlook this, and your profits might vanish faster than holiday decorations in January.
• Specialized Gear for Rooftop Condo Work: Trained employees with harnesses are essential for rooftop condo projects. Failing to account for this specialized workforce can jeopardize both the project, staff, and your reputation.
• Different Areas and Salt Requirements : Most Large sites have multiple salt requirements due to facility operations. Make sure that you are aware of product costs prior to your bid. Rock Salt, Calcium Chloride, Magnesium Chloride etc. greatly vary in costs and can run through your profit margin quickly. Its a pain to use multiple products- but their is a reason why they are asking.

Long-Term Success and Contract Termination

Understanding the scope of work isn’t just about winning bids; it’s about ensuring long-term success:

• Reputation Matters: A contract terminated for cause can be a severe blow. It not only affects the current project but also tarnishes your reputation. Word travels fast in the industry, and potential clients pay attention to how contractors handle challenges.
• Repeat Business and Facility Managers: Most facility and property managers oversee multiple sites. Impress them with your attention to detail, reliability, and adherence to scope, and you’ll likely secure repeat business. Conversely, a misstep can close doors for future opportunities.

Conclusion

In the world of large contracts, success lies beyond the blueprints and scope of work. It resides in the fine print—the details that separate the seasoned professionals from the novices. So, next time you bid on a substantial project, remember: the devil is in those details, and understanding the scope of work is your compass toward profitability and longevity.

mowr notes

We’re always looking for fresh perspectives and insights from our community, and we’d love to hear from you!

If you’re interested in contributing to our future newsletters, please don’t hesitate to direct message Greg Cranford .

Thank you for subscribing to our newsletter. Don’t forget to follow mowr revenue for more articles and job postings. We appreciate your support and look forward to hearing from you!