Commercial Managers: Navigating IT-Intensive Construction Bids

In the modern construction landscape, IT networks have become integral to many projects, especially those involving smart buildings, large-scale data centres, and infrastructure with advanced digital systems.

For commercial managers, bidding on these IT-intensive projects presents unique challenges. Successfully navigating these challenges can be the key to securing lucrative contracts and ensuring project profitability. 

Understanding the IT requirements 

One of the most significant challenges commercial managers face is fully understanding the technical requirements.  

Unlike traditional construction projects, IT-intensive projects require detailed knowledge of network infrastructure, cybersecurity protocols, and the integration of various digital systems. 

Peter Schwartz, Senior Technology Consultant at OryxAlign, advises, "It's crucial for commercial managers to invest time in understanding the IT landscape of the project. This doesn't mean becoming an IT expert overnight but knowing enough to ask the right questions and identify potential risks." 

Actionable Tip: Collaborate closely with IT specialists early in the bidding process. This partnership ensures you accurately capture the project's IT scope and costs, reducing the risk of underbidding or facing unexpected expenses later. 

Accurately estimating costs 

According to a 2023 survey by KPMG, 65% of construction projects globally experience budget overruns, with IT-related issues being a significant contributor to modern projects. Commercial managers must adopt a meticulous approach to cost estimation to avoid becoming part of this statistic. 

IT network components, from cabling and hardware to software licenses and cyber security measures, can significantly impact the overall cost of a construction project. These elements must be precisely estimated and included in the bid.  

However, many commercial managers may need help due to IT technologies' complexity and rapidly changing nature. 

Peter suggests, "Break down the IT costs into manageable components and work closely with suppliers to get accurate pricing. It's also wise to include a contingency for IT-related costs, as these can fluctuate during the project lifecycle." 

Actionable Tip: Use specialised software tools that integrate construction and IT cost estimation. These tools can streamline the process and provide a more comprehensive financial overview, ensuring your bid is competitive yet realistic. 

Mitigating risks through strong contract management 

A recent report by Deloitte highlighted that over 70% of construction delays are linked to contract management issues. These risks are amplified for projects involving IT networks, making it imperative to have contracts that clearly define responsibilities, timelines, and penalties for non-compliance. 

When IT networks are involved, the risk landscape of a construction project changes considerably. Issues such as delays in technology delivery, compatibility problems, or cyber security breaches can lead to significant project disruptions. Effective contract management is essential to mitigate these risks. 

"Ensure that your contracts are bulletproof regarding IT components," Peter advises. "Include clauses that protect your company from delays caused by IT suppliers and clearly define the roles of all parties involved in the IT implementation." 

Actionable Tip: Work with legal experts specialising in IT contracts to draft agreements covering all potential risks. Regularly review and update these contracts as technology and project needs evolve. 

Leveraging technology for better bid management 

In a digital age, leveraging the right technology can give commercial managers a competitive edge. Modern bid management software often includes features that cater specifically to IT-intensive projects, such as real-time cost tracking, risk assessment tools, and collaboration platforms that bring together construction and IT teams. 

Peter's final advice is, "Don't shy away from using technology to manage your bids. The right tools can simplify complex processes and give you insights that manual methods can't provide." 

Actionable Tip: Invest in a robust bid management platform that integrates with your existing systems. Look for solutions that offer predictive analytics to help you make more informed decisions when bidding on IT-intensive projects. 

Summary of IT-intensive construction bids 

Bidding for construction projects involving extensive IT networks can be challenging, but commercial managers can turn these challenges into opportunities with the right strategies.  

By understanding the IT requirements, accurately estimating costs, managing risks through solid contracts, and leveraging technology, you can enhance your bidding process and increase your chances of success. 

As Peter aptly puts it, "In today's construction industry, understanding and managing IT is no longer optional—it's a necessity. Those who master this will gain a competitive advantage." 

With these insights and strategies, you can position yourself to bid more effectively on IT-intensive projects and deliver them successfully, ensuring long-term profitability and client satisfaction. For further guidance on your next IT networking project, reach out to OryxAlign (hello@oryxalign.com).