”BuildingConnected helps us maintain our relationships. It’s not just about takeoff and pricing. If you have the right people, the project results just follow naturally.Joe Elliott, Senior Estimator at Stuart Olson
Over the past few years, the labor shortage has remained a hot topic in the construction industry. According to an industry report from Autodesk and the Associated General Contractors of America (AGC), 80% of construction companies are struggling to fill hourly craft positions that make up a majority of the construction workforce.
The labor shortage is a threat to the industry, and even if you already have a strong network of subcontractor relationships, that could change soon. According to the National Center for Construction Education & Research, 41% of the current construction workforce is going to retire by 2031.
With that in mind, here are three statistics to help you get the most out of BuildingConnected’s network of over 800,000 subcontractors across North America.
Be strategic when inviting subcontractors to bid
Every general contractor has favorite subcontractors they like to work with, but it’s important to cast a wide net and build relationships with new subcontractors to maintain coverage on every project. Don’t get discouraged if a subcontractor declines to bid on your first, second, or even 20th invitation.
In fact, data from BuildingConnected’s network shows that acceptance rates rise throughout the first 400 bid invitations a general contractor sends to a subcontractor.
But, the correlation only goes so far. After a single subcontractor has received more than 400 bid invitations from a general contractor, accept rates start to decline — and by 1,000, accept rates crater.
This suggests that it pays to be selective when inviting subcontractors to bid. Try to think about what projects will be attractive to each subcontractor.
Data from the BuildingConnected network also suggests that it’s wise to be selective when adding bidders to a bid package.
When more than 10 subcontractors are invited to bid on a single bid package, accept rates start to fall off. Keep that in mind next time you’re tempted to invite 50+ subcontractors to bid on a single bid package!
Creating a strong, wide network of peers and colleagues is imperative for success, but the data suggests that it pays to be strategic about which subcontractor to invite to each project. This will keep your ITB’s relevant — and more likely to be accepted.
Build relationships close to home
It pays to have a strong network close to where the majority of your projects take place. Our analysis of data from BuildingConnected’s network shows that subcontractors are much more likely to accept a bid if they’re in close proximity to the jobsite.
If a subcontractor lives within 10 miles of the project, they are nearly 2x more likely to accept the bid than if the job is over 50 miles away!
This is why it’s important to know how far subcontractors are willing to travel — a feature included in BuildingConnected.
Find and connect with subcontractors in new markets
You have subcontractors in your local area established, but what happens when you get a project outside your normal geographic radius? Coming into potential economic headwinds, it’s important to be able to build and maintain relationships with subcontractors in new locations.
That’s where BC Pro, the premium version of BuildingConnected, comes in. BC Pro lets you publish projects more than 100 miles from your office location, and makes it easy to find and connect with subcontractors in any market — including all 50 states and Canada.
Coupled with BuildingConnected’s powerful search features, it’s easier than ever to find the trade partners you need.