Begin at the beginning.
—Lewis Carroll
In my last offering, I dealt with pre-bid activity and the importance of preliminary communication as part of the whole estimating process. Now, at the risk of setting up a reverse chronology, I think it is appropriate to take another step back and analyze the very source of the estimator’s work—that is, project leads. More specifically, I want to discuss the various origins of our leads, available resources and how to develop leads into new work.
Most of us already know where our project leads come from, and these sources have served us quite well to date. They range from local contractors’ associations, to regional builders’ exchanges, to plan rooms, to bid invitations from friendly general contractors. Many of us continue to rely solely on these comfortable “tried and true” practices and give little thought to upgrading the fount of opportunity.
But as I have stated in past writings, one of the basic survival techniques for estimators dealing with a shrinking market share is to reach out to unfamiliar territories. And if this reaching out process is to be effective, new approaches will be required, including new ways to ferret out project leads.
The relatively recent emergence of online project sourcing services, a byproduct of the information technology boom, has become a welcome approach to finding and developing opportunities in estimating. These information services maintain a large database of projects in all phases—those in the planning stages, those that are soon to go out to bid, bid results and works in progress.
The best of these electronic job boards are very aggressive and very thorough in their collection and listing of significant projects in their embryonic stages. Their powerful search engines can be narrowed to a client’s preferred geographic area, to his particular scope of work, and even to an overall value range. In addition, they provide vital information relevant to the proposed project, such as bid date, project sector (public/private), what general contractors are involved, where plans are available, site location and even projected start date.
In short, these networking services seem like the cure-all for the anxious estimator who is searching for new life in cold and unfamiliar territories. And they just might fill the bill in this regard, but there are potential drawbacks.
Some will guarantee that they will provide all the information for every last project that surfaces within the parameters of your search range—thus touting that no complementary sources are needed. Be skeptical. I’ve unearthed several newly emerged and significant projects that these builders’ boards have missed entirely. My advice is not to abandon your other sources based on pie-in-the-sky promises. Information overlap notwithstanding, the belt-and-suspenders approach is the best for flushing out new work.
The most typically weak area for these networks seems to be in the participating contractors department. Don’t rely on the services’ lists to be complete. The last thing you want to happen is to submit your bid to a list of nine GCs only to discover that there was, unbeknownst to you, a number 10 who was awarded the job. It happens, so do some digging on your own.
Another possible snag with the services is timeliness. Bid dates on listings are not always current so, once again, look deeper into a promising project before investing valuable take-off time.
Perhaps the biggest drawback in using lead services is the cost. None of them are cheap by any means, and in this economic climate, we all seem to be rubbing nickels together. But even in these lean times, it still takes a dime to make a dollar, and if you find the right source for your purposes, the investment will pay you back in spades. Besides, all of the above drawbacks can be eliminated with some time invested in a trial period, which most services offer up front at no cost.
In conclusion, the online lead services can be a primary source for selecting projects to bid, but hang on to your other lead sources for reinforcement. For something as critical as searching for work, use the belt-and-suspenders approach and you won’t be caught with your pants down.
Next month: Using the sources, developing leads and selecting projects.
Vince Bailey is an estimator/operations manager for San Juan Insulation and Drywall, Durango, Colo.
