Property preservation companies are responsible for maintaining and securing vacant properties on behalf of lenders and mortgage servicers. The bidding and estimating process is an essential component of property preservation work. In this guide, we'll walk you through the steps of the bidding and estimating process and provide tips for creating accurate and competitive bids.
Property Preservation Bidding and Estimating Process
The bidding and estimating process is an essential component of property preservation work. It's crucial to create accurate and competitive bids to ensure that you win jobs and earn a profit. By following the steps outlined in this guide, you can create bids that accurately reflect the work required and provide value to your clients.
With careful planning and attention to detail, you can create winning bids that help grow your property preservation business.
Initial Property Inspection
The bidding process begins with an initial inspection of the property. The inspection will identify any necessary repairs or maintenance tasks and help determine the scope of work required for the job. Inspectors should take note of the property's condition, size, and any special features that could impact the project's cost.
Scope of Work
Once the inspection is complete, the next step is to define the scope of work. This will include the specific tasks required to complete the job, the estimated time required to complete each task, and the materials and equipment needed. A detailed scope of work will help ensure that your bid accurately reflects the work required and the associated costs.
Cost Estimation
After defining the scope of work, it's time to estimate the costs associated with each task. This will include material costs, labor costs, and any other expenses associated with the project. It's essential to consider all potential costs when creating your bid, including transportation costs, insurance, permits, and any other fees or charges that could impact the job's overall cost.
Creating a Competitive Bid
Once you have an accurate estimate of the project's costs, it's time to create a competitive bid. Your bid should reflect the work required, the associated costs, and the value that you bring to the project. It's essential to ensure that your bid is competitive while still allowing you to earn a profit.
Submitting Your Bid
Once your bid is complete, it's time to submit it to the property preservation company or the client. Be sure to follow any specific guidelines or instructions provided for submitting bids. This will help ensure that your bid is considered and that you have the best chance of winning the job.
Don't write too vague a description. Don't forget about the correct dimension of the damaged region, the consequence if it isn't handled, and the supplies required.
The Best Bidding Practices for Property Preservation
Bidding for property preservation work can be a daunting task, especially if you're new to the industry. Accurate and competitive bids are essential to winning jobs and growing your business. In this guide, we'll explore the best bidding practices for property preservation work, including how to create accurate estimates, tips for presenting your bid, and strategies for winning jobs.
- Know Your Costs
The first step in creating an accurate bid is to understand your costs. This includes material costs, labor costs, and any other expenses associated with the job. It's essential to consider all potential costs when creating your bid, including transportation costs, insurance, permits, and any other fees or charges that could impact the job's overall cost. By knowing your costs, you can create bids that accurately reflect the work required and ensure that you earn a profit.
- Define the Scope of Work
Defining the scope of work is an essential step in creating an accurate bid. This will include the specific tasks required to complete the job, the estimated time required to complete each task, and the materials and equipment needed. A detailed scope of work will help ensure that your bid accurately reflects the work required and the associated costs.
Present Your Bid Professionally
Presentation is key when it comes to bidding for property preservation work. Your bid should be presented in a professional and organized manner. This includes using clear and concise language, outlining the scope of work, and including detailed cost estimates. Your bid should also include any relevant certifications or qualifications that demonstrate your expertise in the industry.
A perfect bid contains the following things.
Type: Select the dropdown of the vendor web bid portion that most closely matches the bid item. If a selection is not applicable to the bid, choose “Other”.
Description: The description is one of the most important aspects of the bid. When applicable always provide the location, dimensions, materials, source (if mold or damages are present), and any other factual details pertinent to the bid.
Quantity: The quantity is the number of units per rate. Photos must support the bid quantity.
Rate: The rate is the $ amount per quantity. In order to prevent excessive bids, utilizes RepairBASE/XactPRm to verify labor and material costs.
Photos: Finally need to upload relevant photos to prove your bids description and other aspects
Example & ExplanationRemove the damaged (Broken & hanging on) kitchen cabinet door, will remove the resulting 1 cyd debris and then will replace (24 x 24" ) (kitchen) Cabinet door and paint to match existing as best as possible.
- Be Competitive
Creating competitive bids is essential to winning jobs in the property preservation industry. This means balancing your costs with the value that you bring to the project. It's important to consider the client's budget and any competitors when creating your bid. However, it's also essential to ensure that your bid allows you to earn a profit and maintain the quality of your work.
- Follow Up
Following up on your bid is a critical step in winning property preservation jobs. It's essential to stay in touch with the client and answer any questions they may have about your bid. Following up demonstrates your commitment to the project and can help you stand out from the competition.
Conclusion
Bidding for property preservation work can be challenging, but by following these best bidding practices, you can create accurate and competitive bids that win jobs and grow your business. By knowing your costs, defining the scope of work, presenting your bid professionally, being competitive, and following up, you can stand out from the competition and establish yourself as a reliable and skilled property preservation professional.
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