Contractor’s Corner: Avoid trouble in bidding projects – June 2026

By Dave Stafford

You had the right price, were the low bidder and the bid was on time, but you didn’t get the award. After you gnashed your teeth and asked the buyer questions, he said, “Joe, there is nothing I can do; better luck next time.” I expect that exact scenario has played out for most of us in the commercial flooring arena. In this column, I will point out some mistakes and how to avoid or overcome such a disaster on your next bid.

READ BEFORE YOU BID

Schedule some uninterrupted quiet time to carefully read the bid/scope of work document and make notes well in advance of the bid date. These notes should include dates, significant issues or bidding requirements. When is the bid due, and is this a public opening? Is this an invitation for bid (IFB) or a request for proposal (RFP)? Don’t confuse the two, as each has its own nuances. In my early years, I submitted my own ideas and products for an IFB, and the buyer rejected my bid. “Your ideas were great, but you did not bid on what we specified; we didn’t want ‘suggestions.’ If we had, we would have said so.’”

Are you qualified and able to bid? Do you have the financial assets to secure a bid bond, and if you win, the ability to qualify for the payment and performance (P&P) bonding required? More than once, I struggled to find an insurance company willing to provide P&P bonding. And I had overlooked the 2% to 5% fee (of the bid amount) that would be charged for this.

The scope of work will often derail many bidders due to its complexity, specific products and the range of services that must be provided. Do not bet on doing business with an unknown company or getting a new line of credit. Do you have a trusted sub who can perform “shot blasting and ‘laser leveling’ for the Ardex-type poured flooring?” Do you have certified personnel to install Axminster wool carpet or linoleum sheet goods with heat-welded seams? I’ve paid for “learning on the job,” and it’s expensive. 

Please note any penalties for deliveries made beyond the specified due date. In a large contract, this may be $500 to $1,500 per day. Can you meet this timeframe with the supplier and your installation personnel? An Axminster was included in one bid I reviewed; after checking, the loom time was 12 weeks and shipping time was two weeks on the water and one week delivery to me from port. This was awkward when the whole project was to wrap in 12 weeks. The client was livid! The designer called me for help; I found a custom-print nylon that met her specs that could be delivered in six weeks. I also got “project pricing” from the mill due to the circumstances, which gave me an edge in the bid.

Look carefully at the retention amount and term. Usually, it is 10%, and it can be held for up to a year. If you perform well and have a good relationship with the project manager, some percentage may be released early. Plan on ways to endear yourself to the site manager and project manager. The jobsite is one place where you need friends, not enemies. 

NEVER SKIP THE SITE VISIT

The pre-bid conference and the jobsite walk-through are where the owner or buyer will explain the bid document, their goals for the purchase and critical parts of the document itself, and then allow you to physically inspect the jobsite with all its warts.

Be prepared by having read the bid document. Write out your questions and then ask them if others have not done so. If you have spotted mistakes in the bid document, here’s the time to ask. Your questions should not be of the “gotcha” nature but helpful to all. Note the emphasis by the owner/buyer and find out what’s important to them. One buyer had obviously been burned before; he made a big deal of the required bid bond and ability to secure P&P bonds. Another stated, “Be sure you include references and phone numbers of previous or similar work performed. Failure to do so may result in bid rejection.” 

One question to always ask is the criteria for the award. Is it to be low-priced, or are there other factors? Specifically, what are the factors, and is there a weight given to each? Some documents specify, “60% price, 20% experience and references, 20% financial stability and assets.” 

It is always better to have two people attend the walk-through. One of you may miss an important site characteristic; be sure to bring a steel tape measure. I vividly remember attending the site visit for an RFP and hearing a competitor remark, “There’s no point in measuring; they’ve already specified the square feet needed.” I went ahead and measured the areas; most were overstated by 10% to 15%. My bid was based on the cost to do the job, not on their numbers. So, I won the award. This is also your chance to uncover terrible site conditions: cracked and uneven concrete, old rubber-backed carpet or asbestos floor tile. 

A site visit is one way a buyer can protect themselves from omissions in the scope of work. One purchasing agent said, “This was a required site visit in order to bid the job; I may not have gone into detail about the prep work required, but you are supposed to be professionals and know how to prepare the substrate, so include the necessary materials for minor floor prep.” If major prep is required (such as floor leveling or shot-blasting), then that’s another issue. 

In one pre-bid walk-through, it was obvious that the project manager was inept. When I asked about major floor prep, he said, “That is not needed, just use some flash-patch. We don’t have the money.” 

I responded, “We have over 3,000 square feet of cracked, uneven concrete that used to have direct-glued carpet installed; you expect us to scrape the floor and install vinyl tile? There is no way to make a silk purse out of a sow’s ear on this concrete without grinding and some leveling; otherwise, the substrate irregularities will telegraph through the vinyl and be a mess. This is contrary to the best practices of the trade.” 

His face turned white, and he mumbled something about getting money from somewhere. We did get the job and were told to “just submit” for extra prep work to the site manager, but our change order was never formally approved. When we delayed work, we were threatened with liquidated damages if we did not continue while our change order was under review. We “blinked” and continued work, recovering only 15% after waiting a year. Don’t spend a dime until it’s signed, said one industry guru.

INSTALLATION DETAILS CAN MAKE OR BREAK A JOB

Product specs, installation parameters and floor prep are key areas where you should be making notes, red-lining or highlighting. Are you able to buy the products? Is there a provision for “or equals,” and if so, must these be submitted for approval before bidding? A highly qualified competitor of mine was disqualified because he offered a product that the design team had not approved in advance. Is the timeline for delivery and installation consistent with the availability of products? Will a deposit be required by the manufacturer; if so, will there be a quick reimbursement by the owner? For custom products, a 50% deposit may be required by a small mill.

Are you experienced or willing to perform the type of installation required? I did not bid a job that called for the “double-stick glue-down method” for a separate pad and carpet. We had a bad experience with this method (bubbles and ripples throughout). We preferred the factory-laminated carpet and pad because they were much more forgiving. Is the desired method of installation appropriate? This is critical if a rehab of existing space is required. In the case of a more esoteric product, are you certified to install? 

When a patterned carpet is specified with the direct gluedown method, are your installers adept at power-stretching, stay-nailing to correct pattern match? A job with a large hospitality-patterned carpet was stopped because the installers said, “This carpet is defective; the pattern cannot be matched.” Actually, the pattern repeat was out by about 18”, but the mill’s tech rep proved that by judicious stretching and stay-nailing, an acceptable match could be made. The installer just wasn’t experienced enough.

Are you able to perform the necessary floor prep with your own installers, or will you have to subcontract it to a specialist? When the owner or general contractor is to do site prep for flooring, you should expect to perform minor prep. But have they defined what “minor prep” is in the bid document? I once told a buyer, “Minor prep means we do not ‘rebuild the floor’; that’s your job. We will fill small holes, grind down lumps and where cracks or seams might telegraph through.” There will always be some floor prep to do, so make an allowance for it. 

DELIVERY DATES, BONDS AND PAYMENT TRAPS

Pricing, delivery desired/required, payment and bonds. First, are you able to buy the major products specified, or will you need to open a new account? Does the mill have a good reputation with dealers? This is easy to find out by asking around. I’ve rejected bids when certain mill reps, manufacturers and their products were involved. Part of this goes to trust and the integrity of the mill rep. “Sure, I’ll give you pricing on this job,” Rob said. That was the last I heard from him, and I was unable to bid the job after spending a lot of preparation. I was furious! His reputation as a snake was earned. 

When the delivery time for receipt of product and finishing installation is listed as “desired,” that’s when they’d like to have it, and “required” means you’ll be in breach of contract if you don’t have it delivered, installed and approved by that date. You had better know the difference. What if you can meet the “desired” date? Does that really buy you anything, or just goodwill? I’d always ask if this is not clearly specified.  

What type of bonds are required, and when must they be delivered? Bid bonds must usually accompany your bid, so plan ahead to have them well before the bid due date. P&P bonds require time and effort to acquire, so make sure you can get preliminary approval before you bid rather than “bid and pray.” It can be devastating to your reputation if you cannot secure the bond in a reasonable time after the award. Make sure the insurance company is on the owner’s approved list. You may have to shop for P&P bonding, as costs will vary and can be expensive. Is the bond amount paid for separately by the owner or to be included in the overall bid amount?  

How soon will you be paid for your work once done? Typical is 45 to 60 days after submission of a “requisition” for payment. Remember that retention amount; it applies to each requisition. Will you get a waiver on the stored materials billing? 

Make sure your submissions are on time and approved. A great rapport with the owner’s payment processor is important.

Some will say that bidding is an art form; I don’t disagree. Read the scope of work, understand the nuances, know your limitations and make friends with everyone connected. n

THE AUTHOR

Dave Stafford is a former flooring company executive with over 35 years of experience in commercial, government and residential sales and management. He can be contacted at dave@dsainfo.com.