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Practical· 5 min

Five common mistakes in construction bids

The mistakes we see most often — and how to avoid them without changing your method.

After reviewing several hundred bids, certain patterns recur. Here are the five we see most often.

Forgetting contingencies. A 5-10% buffer for unknowns isn't optional: it's the difference between a profitable project and a loss.

Underestimating labour. Hours are systematically underestimated by 15-25% on first-pass estimates. Our historical data shows this consistently.

Not checking supplier prices. Prices move. A 2023 lumber quote can be 30% off by 2025.

Confusing gross quantity and waste-included quantity. A 100 sq ft floor with 15% waste needs 115 sq ft of material. Easy to forget.

Not validating assumptions with the client. "Is excavation in scope?" Ask before you bid.