How Excavation Contractors Can Win More Jobs with Accurate Bids and Estimates
- Sep 29
- 4 min read
In the excavation industry, inaccurate bids and vague estimates can cost contractors more than just money — they can cost trust, reputation, and future work. Whether it's underbidding and losing profits or overbidding and losing the job, poor estimating practices can derail growth. On the other hand, accurate bids and estimates help excavation contractors win more jobs, build client confidence, and maintain profitability.
In this blog, we’ll explore why precision matters, share proven bidding strategies, and show how Contractor Back Office and Excavating Insurance Partners support contractors in securing and executing profitable excavation projects.
Why Accurate Bids and Estimates Matter for Excavation Contractors
Accurate bidding is more than just crunching numbers — it’s about presenting a clear, professional proposal that reflects your expertise and reliability. Here’s why it matters:
Builds Client Trust: Clients are more likely to choose contractors who provide transparent, well-documented estimates.
Improves Profitability: Accurate cost forecasting helps avoid budget overruns and protects margins.
Enhances Competitiveness: Contractors who consistently submit precise bids stand out in crowded markets.
According to Estimating Edge, detailed estimates backed by software and risk planning significantly improve win rates
10 Bidding and Estimating Strategies for Excavation Contractors
1. Use Data-Driven Bid Selection for Excavation Projects
Instead of bidding on every job, analyze past project data to identify which types of excavation jobs are most profitable. For example, if commercial site prep consistently yields higher margins than residential trenching, prioritize those bids. Use CRM tools to track win rates and client types to refine your bidding strategy.
2. Leverage Excavation Estimating Software for Accuracy
Manual calculations can lead to costly errors. Software like Jobber helps contractors build itemized estimates with real-time material and labor costs. For instance, you can input cubic yards of soil to be moved, equipment hours, and crew wages to generate a precise estimate in minutes.
3. Break Down Excavation Costs by Project Phase
Clients appreciate transparency. Divide your estimate into phases such as site clearing, trenching, grading, and backfilling. This not only clarifies scope but also helps you track costs internally. For example, if trenching costs spike due to rocky soil, you’ll know exactly where the overage occurred.
4. Include Contingency Planning in Excavation Bids
Unexpected costs — like weather delays or underground obstructions can derail budgets. Add a contingency line item (typically 5–10%) to your bid. This shows clients you’re prepared and protects your margins. For example, a $100,000 bid might include a $7,000 contingency buffer.
5. Highlight Safety and Compliance in Excavation Estimates
Include your safety certifications, insurance coverage, and OSHA compliance in your bid documents. This reassures clients and can be a deciding factor. For instance, listing your workers’ compensation and equipment insurance coverage shows you’re ready to handle risks professionally.
6. Showcase Past Excavation Project Success
Attach case studies, photos, or testimonials from similar jobs. If you’ve completed a 10-acre commercial site prep on time and under budget, include that in your bid. This builds credibility and helps clients visualize your capabilities.
7. Use Real-Time Market Pricing for Excavation Materials
Material costs fluctuate. Use platforms like RSMeans to update prices for gravel, concrete, and fuel. For example, if diesel prices rise, your estimate should reflect that to avoid underbidding.
8. Offer Optional Add-Ons in Excavation Proposals
Include optional services like drainage installation, erosion control, or retaining walls. This gives clients flexibility and increases your revenue potential. For example, a base bid of $80,000 could include a $12,000 optional drainage system.
9. Communicate Clearly in Excavation Bid Documents
Avoid vague language. Clearly define scope, exclusions, payment terms, and timelines. For example, specify that rock removal is excluded unless discovered during trenching, and outline how change orders will be handled.
10. Follow Up Professionally After Submitting Excavation Bids
Don’t just send the bid and wait. Follow up with a phone call or email to answer questions and reinforce your value. Contractor Back Office’s phone support and CRM tools can help schedule and track these follow-ups, increasing your chances of winning the job.
How Contractor Back Office Supports Excavation Contractors
Contractor Back Office helps excavation contractors prepare winning bids and manage projects with:
Bids & Estimates Management: Create accurate, branded proposals with detailed cost breakdowns.
Bookkeeping & Invoicing: Track expenses and send invoices aligned with project milestones.
CRM Integration: Manage client relationships and follow-ups from one dashboard.
Phone Support: Ensure every client inquiry is answered professionally and logged.
These services streamline operations, reduce admin burden, and help contractors focus on delivering quality excavation work.
Protecting Excavation Contractors with Excavating Insurance Partners
Winning a bid is just the beginning — executing the project safely and securely is just as important. Excavating Insurance Partners provide:
General Liability Insurance: Covers property damage and third-party injuries.
Equipment Insurance: Protects against theft, breakdowns, and damage to heavy machinery.
Workers’ Compensation: Ensures crew members are covered in case of job-related injuries.
Insurance reduces risk and ensures contractors can complete projects confidently and professionally.
Conclusion:
Accurate bids and estimates are the foundation of winning excavation contracts. When paired with Contractor Back Office’s support and Excavating Insurance Partners’ coverage, contractors gain the tools and protection needed to grow sustainably, win more jobs, and deliver successful projects.
