10 Red Flags in an Invitation to Bid
Not every invitation to bid deserves your estimator's time. Some ITBs carry warning signs that a job will be hard to win, hard to profit on, or both. If you're a low voltage, security, fire alarm, or AV contractor, watch for these ten red flags before anyone opens the drawings.
1. Addenda referenced but not included
If the ITB mentions an addendum you don't have, you're pricing incomplete drawings. Get every addendum before you start.
2. Heavy retainage
Retainage of 10% held until substantial completion can tie up your cash for months on a long job. Factor it into whether the job is worth it.
3. Bonding you can't meet
If the job requires a bond above your capacity, stop before spending any time on pricing.
4. High liquidated damages
A steep daily rate for late completion turns any schedule slip into a loss. Know the number before you commit.
5. Unclear scope split with the electrical sub
If it's not clear who carries conduit, backboxes, and rough-in, you risk a gap nobody priced or a double-count that loses you the job.
6. Brand-locked specs
A spec written around one manufacturer's product line, especially one you don't carry, is a hard job to win.
7. A rushed due date
Too little time to price usually means a rushed, risky number. If you can't do it right, consider passing.
8. A long bidder list
The more contractors invited, the lower your odds. Weigh the effort against your real chance of winning.
9. A GC with no award history for you
If a GC keeps sending invitations but never awards you work, they may only be using you for pricing.
10. Owner-furnished equipment with vague responsibilities
When the owner supplies head-end equipment or devices, make sure it's clear who installs, programs, and warranties it.
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