According to global data, the US construction market was valued at 1.96 trillion dollars in 2021. This figure is expected to increase as the government invests more money in the construction sector. The construction sector can be divided into three main sectors, residential, commercial, and infrastructure.
Each of these sectors can be broken down into categories with different needs, regulations, and rules. An excellent example is the commercial sector which has several categories. These categories include multifamily structures, offices, retail and industrial buildings.
Industrial buildings have subcategories such as Warehouse, distribution, and manufacturing.
Table of Contents
What is Industrial Construction?
Industrial construction is designing, installing, and maintaining mechanical and structural components of industrial facilities. Industrial construction deals with any construction that deals with either warehousing or manufacturing.
Industrial structures include power plants, refineries, and factories. These projects differ from other types of construction, such as residential and commercial. It is different in the following ways:
Complexity
Industrial projects are more complex when compared to some residential and commercial projects. Though residential projects can vary in design, the project details are similar. However, industrial projects are more complicated and custom-made to suit clients’ needs. Most Industrial projects require more skilled labor, specialized equipment, and rare building materials.
In this regard, contractors must use modern technology to reduce error and ensure an industrial project is successfully implemented. An example of such technology is https://www.alicetechnologies.com/solutions/for-industrial. ALICE reduces construction risks and uses optioneering to ensure critical projects are completed on time.
Design
Commercial buildings are designed to accommodate the flow of crowds in a building. However, industrial projects are built to ensure efficiency and fulfill the logistical needs of the business. Industrial structures ensure that there is enough space for machinery and production lines.
Location
Location plays a big role when setting up commercial structures, restaurants, and office blocks. The project owner needs the business strategically located to facilitate easy access to people, goods, and materials.
On the other hand, Industrial facilities are more concerned about accessibility, other than access by the general public. For this reason, industrial structures are set up near Highways and ports.
Lastly, industrial projects require more scrutiny and permits when compared to residential projects. The bigger the industrial project, the more permits are required. An industrial project must undergo environmental permitting to be safe for use.
5 Tips for Bidding on Industrial Construction Projects
It does not matter the type of project a contractor is bidding for. What matters is that they are offering value-added services. The project manager must find innovative ways to stand out from the competition. One way to do this is to use modern technology that can help reduce construction time and costs.
Other tips for project managers to use when building industrial construction projects are the following.
1. Create a Comprehensive Bid
To increase your chances of winning an industrial project, the project manager must recruit a qualified team to create a comprehensive bid. The bid should be as detailed and accurate as possible. The quoted cost should be realistic, and the contractor should refrain from underquoting to win the project.
To create a comprehensive bid, follow these steps:
- Understand the scope of work, equipment required, and material
- Use accounting platforms to estimate equipment, material, labor, and permit costs
- Include administrative, insurance, and office expenses
2. Create an Accurate Quote
Price should be your greatest advantage when bidding for larger government industrial projects. This is because, in most cases, the government must award the contract to the contractor who saves them money. The best way to have an accurate quote is to look at past historical projects of similar scope.
For example, if a past similar project costs $10 million in your city, then your estimates should be within this range after factoring in inflation and taxes. Instead of intentionally reducing your margins to be more competitive, project managers should consider value engineering.
Value engineering is the process of analyzing the scope of work and creating creative ways to reduce costs without affecting quality and performance. This way, the construction margins are still reasonable, with room for error.
3. Emphasize Safety
One main concern for industrial project owners is safety. Therefore, you will be at an advantage if you can prove the project’s safety. Poor safety protocols can cause factories to be shut down and the factory owners to pay hefty fines.
One way to emphasize safety is to highlight your company’s safety policies and provide a detailed safety plan for managing the industrial facility. Your team can also create safety incentives that the project owner will use to ensure safe working conditions.
4. Research the Client
The best way to win an industrial bid is to understand the client inside out. This way, project managers can create a personalized bid to impress the client. You can start your research by investigating the client’s background, reputation, financial muscle, accomplishments, and dislikes.
If the client prefers modern futuristic designs, the company will have a competitive advantage if they use technology to impress the project owner.
5. Build Trust by Being Transparent
Industrial project owners prefer to work with transparent companies because they know what to expect from the word go. Construction companies should be transparent about their pricing, employees, and records. When submitting a bid, ensure it includes the work outline, milestones, and technology used.
Including a preferred communication channel that guarantees the project owner regular updates is also necessary.
In conclusion, contractors who win industrial construction projects are those who put in the work in their bid documents. A good bid must be as comprehensive as possible. The cost must be accurate and reasonable, and the client submitting the bid must be transparent. The government will award tenders to transparent companies.
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