Knowing how to bid plumbing jobs can help you win more clients and land bigger and better contracts for your business.
But simply submitting a bid to a prospective customer won’t guarantee you the work. A winning bid sells your plumbing services and convinces a client that you’re the best person (or team) for the job.
In this article, we’ll break down the steps you need to follow to write bids, hook new contracts, and grow your business.
Learn how to bid plumbing jobs and win more work:
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Understand your client’s expectations
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Price your materials and labor
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Make your plumbing service or business stand out
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Use technology to create and send automated bids to clients
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Submit the necessary bidding documents
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How to accurately estimate costs for a plumbing job
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Different kinds of plumbing job bids
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Best practices to write winning plumbing bids
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Where should you look for potential plumbing jobs?
Why do you need to bid on new plumbing jobs?
In a service-based business, the purpose of bidding is to provide any prospective customer with two pieces of information:
- How much the job will cost to complete
- Why your company is the best option for completing the project
As helpful as it is for a client to know what they’ll pay for completed work, bidding also lets you, as the business owner, estimate your own costs and profit. As a result, you’ll both have a better understanding of what each contract involves.
1. Understand your client’s expectations
To submit a bid that takes into account the full scope of plumbing work (including labor demands and required materials), you’ll need to start with a clear understanding of your client’s expectations.
Review your client’s invitation for bid (IFB), request for proposal (RFP), or any documentation they may have sent. Carefully review the scope of work, timelines, and submission requirements. If you need clarification or any additional details, ask the client directly before you prepare a bid.
2. Price your materials and labor
Once you’ve determined the project requirements, you can start pricing the cost of materials and labor. Accurately pricing out both elements ensures that the job stays profitable.
Material and labor costs vary depending on the job type (new construction, service repair, remodeling) and your client’s specific requests.
For example, if you’re bidding on a remodeling plumbing job and your client wants high-end finishes, expect to budget more for premium fixtures like shower heads and faucets.
On the other hand, if you’re bidding on a new construction project that requires excavation or installing drainage systems or catch basins, your bid will include much higher manual labor costs.
READ MORE: How to price plumbing jobs: An easy formula
What factors affect the cost of plumbing services?
Before including your cost estimate for time and materials on your plumbing bid, consider:
- The size, scope, or complexity of the plumbing system
- The markup you need to charge to pay yourself and keep your business’s doors open
- Industry standards for a plumber’s salary in your region
- Compensating plumbers with specific plumbing licensing (eg., master plumber, journeyman plumber)
- The travel time it takes for your team to get to and from the job site
- Additional expenses that keep your business running, like plumbing marketing, business equipment, and insurance
3. Make your plumbing service or business stand out
Next, give your prospective client a clear reason to pick you. In your bid, specify what sets your business apart from the competition.
For instance, your technicians could have specific plumbing certifications, or your business may have earned industry awards. If you have a service guarantee or positive customer testimonials, now is the time to share them.
To successfully pitch your business, add your company’s tagline to your bid. You can also share images of completed projects that were similar in scope, or you can demonstrate your attention to detail by sharing a case study of a job you went above and beyond for.
4. Use technology to create and send automated bids to clients
Using technology to send digital copies of a bid can make your plumbing business look more professional to potential clients. This also automates your processes and makes it easier for clients to approve bids and pay deposits when ready.
With a plumbing business software like Jobber, your plumbing business can:
- Send professional quotes and bids to potential clients
- Set the right price with markups to show your estimated margin
- Suggest optional line items or premium packages
- Offer consumer financing
- Send quote follow-ups and automated reminders via email or text
- Give customers a self-serve experience with easy quote approvals
5. Submit the necessary bidding documents
There are a few pieces of “paperwork” that you’ll need to send to your clients as part of a complete professional bid. These are:
Plumbing contract
A plumbing contract can protect your business from potential disputes and ensure you’re compensated for your services. It should outline the scope of work, the services you’ll provide, and the costs associated with it.
How well the job is managed, is usually how well the job does at profit time. But also, you can estimate improperly. So if you don’t have a system for estimating, there’s a lot of trial and error
Drawings or blueprints
Plumbing drawings and blueprints show you the exact specifications of the job, can help you provide exact material costs and labor costs, and identify any potential challenges you may face on the job.
Pro Tip: Check with the builder or homeowner to see if they have a copy of the existing plumbing drawings.
Plumbing takeoff and pricing
A plumbing takeoff document is a detailed summary of everything you need to get the work done. It includes items like physical goods and materials, plumbers, and subcontractors.
The blueprints you collect will be helpful when creating your plumbing takeoff sheet. For example, you can use colored pencils on your blueprints to specify pipe lengths, fittings, and fixtures to create an accurate takeoff. You can also highlight specialty fixtures, tools, or unique skills needed for installation.
Use your takeoff to create a spreadsheet that captures every quantifiable detail, like materials (with prices), labor needed, quantities, and lengths.
How to accurately estimate costs for a plumbing job
Pricing is a major consideration for clients, which is why you’ll need to provide an accurate estimate on their plumbing bid.
Here are some tips to help you learn how to price a plumbing job:
1. Accurately estimate labor needs
Use the job scope to determine how many workers you’ll need to dedicate to that job. Then, figure out how long you expect the job to take to determine your total number of labor hours.
For example, if you need two technicians and you expect the plumbing job to take a day to complete, your total labor hours would be 16. (Two technicians x eight hours)
How to estimate your labor costs
To estimate your labor costs, use this formula:
Total # of labor hours x Hourly rate
If we use the same example from above and the hourly rate of $65, your estimated labor costs would be $1,040 (16 x $65).
2. Do the math for materials
Determine your costs for materials (including taxes) that you’ll need to complete the project. Factor in any special plumbing tools and other consumables you need to purchase in advance.
For example, if you’re bidding on a bathroom remodel, some of your material costs will include:
- Standard bathroom fixtures (sink, toilet, tub, or shower)
- Cabinets
- Faucets
- Flooring
- Paint and primer
- Drywall and cement board
- Tile and grout
- Caulking gun
- Silicone sealant
Write out your materials list, price each item individually, and add them up to get your total materials cost.
3. Add miscellaneous expenses
It takes more than just materials and labor to keep your business running smoothly. These additional expenses are called overhead costs, and may include:
- Licenses and permits
- Insurance payments
- Plumbing van maintenance and fuel
- Marketing costs
- Office rent payments and utilities
- Administrative software and office equipment
Add these monthly expenses to determine your recurring overhead costs. Then, use this formula to figure out your hourly overhead rate.
How to calculate your hourly overhead rate
Overhead rate per hour = total overhead costs / total billable hours
For example, if your monthly overhead costs are $4,000, and you typically bill 680 hours a month, your hourly overhead costs would be $5.88.
To calculate your overhead costs for your plumbing bid, multiply your hourly overhead rate by your estimated labor hours:
16 (labor hours) x $5.88 (hourly overhead rate) = $94.08 (total labor costs for the bid)
Once you’ve priced out the plumbing job, add 3% to your total estimate to give yourself a little wiggle room in case you run into any complications on the job.
Pro Tip: Use Jobber’s plumbing estimate template as your plumbing bid template. It’ll help you detail all job costs and send professional bids to potential clients.
Different kinds of plumbing job bids
There are three different types of jobs you may be asked to bid on:
1. Remodel plumbing bid
This type of bid may be for residential or commercial clients who are looking to remodel a specific room or entire building that contains a lot of plumbing, such as a bathroom, kitchen, or laundry room.
Pro Tip: If possible schedule a pre-bid meeting with a walkthrough of the site if you can. This will give you a better understanding of just how much labor and materials you’ll need for the plumbing project.
2. New construction plumbing bid
New construction plumbing bids will most often be requested by commercial clients or residential builders. They require the greatest amount of consideration to bid, as you’ll need to plan and install new plumbing systems to make sure the new building has running water.
3. Plumbing service bid
You may receive a request to bid on plumbing services from government agencies or property managers looking to award a service contract to the right plumbing company.
If you win this bid, you’ll be responsible for handling all plumbing services for this client for the duration of the contract.
READ MORE: The 6 main types of plumbers and the plumbing services they offer
Best practices to write winning plumbing bids
Every job (and prospective customer) is indeed unique. Luckily, there are a few tips that can help you win more contracts no matter what you’re bidding on and who you’re bidding for.
Be specific
Ask for as much information as possible about the job, including blueprints or specs, especially with large-scale projects. This can help you avoid surprises in the middle of a project and it shows your customers that you’re diligent.
Itemize a new estimate
Many customers like to visualize where their money is going. To help, you can break down costs for labor, materials, and any extra fees. Detailed, transparent bids build trust with clients.
Know your local market
Find out more about local rates to make sure your bid is competitive. As you research competitive pricing, ensure that any estimate fully covers your costs.
Plan for unexpected issues
Experienced plumbers know that surprises often happen. Make room in your bid for unexpected problems, such as hidden leaks or outdated piping. Whenever you find an issue, communicate back to the client as soon as possible so that they can make an informed decision.
Follow up with a personalized message
After sending your bid, check in with the client. Showing that you’re engaged and serious about winning the job can mean a lot to clients, especially if they’re busy or forget to respond.
Where should you look for potential plumbing jobs?
Even if you have solid bidding processes, you might still be wondering—where do I look for prospective jobs in the first place? Here are a few ideas to get you started.
Work on your local network
Always ask your previous clients for reviews and referrals or spend time networking with local neighbors.
Get active on social media
Use popular platforms like Facebook and Instagram to post tips and before-and-after job photos. Follow and interact with other local businesses in your area to spread the word.
Partner with contractors
Start networking with general contractors, local real estate agents, and property managers. Many of these professionals often need reliable plumbers for ongoing projects—and it’s great to be at the top of their list.
Use government bidding websites
As a new business, you might not know that the United States government offers contracts for public plumbing work. Head to websites like SAM.gov and state-specific portals for licensed contracting opportunities.
Join online directories
You can also register on service sites like HomeAdvisor or Angie’s List. On these sites, potential customers are actively searching for providers. This makes it easier for them to find you and request bids directly.
Send professional plumbing bids with Jobber
Whether you’re just starting your plumbing business or you’ve been in the industry for years, sending professional plumbing bids can help you win more jobs and grow your business.
With Jobber, it’s easy to send quick and professional bids, schedule plumbing jobs, and automate your invoicing to get paid faster.
Originally published on March 9th, 2022. Last updated on October 24, 2024.