How to Reprice an Underbid Building Project

When you bid building projects, it's easy to underbid them. You may have made the mistake yourself, or you may be the one who's repricing another contractor's mistake. Either way, there are ways to reprice an underbid building project successfully and tactfully.

Instructions

Difficulty: Moderate

1. Take a project you underbid yourself, for example, when you reprice a project. It's best to rebid the project before you start the work, if possible. This day and time, consumers are educated in what they are looking for. If you start the job with the underbid price and go back and tell the customer you must rebid, they may think you are price-gouging.
2. Reprice an underbid building project that another contractor underbid, and then walked away from. These building projects must be finished, but you must be careful to not overbid these type jobs. Overbidding may cause you to lose the opportunity to do the job.
3. Think about the different aspects of a building project when you reprice an underbid building project. Most building projects are broken up into different categories. It's best to bid only on the part of a project where you have expertise. For example, if you are a framing contractor, you don't want to bid on the interior trim part of a building project.
4. Look at building projects that are currently under contract when you reprice an underbid building project. Contracts normally require that when you give a customer a price, you must stand behind it. There are clauses in contracts, however, that protect the contractor and the company they work for. A clause may state, for example, that if you encounter an unforeseen problem, you may submit a new bid for that particular problem.