Direct Answer
Competitive steel bidding requires: accurate BOM takeoff, historical labor productivity data, current steel pricing with freight, and a realistic overhead rate. Protect margins by bidding accurately (not by cutting price), by selecting projects that match your shop's strengths, and by including escalation provisions and change order rights in your bid clarifications.
Full Explanation
Bid strategy elements: (1) Select projects where your shop type (standard, seismic, heavy industrial) aligns with the work — you'll be more efficient and thus more competitive than a shop that's stretching outside its niche. (2) Bid the full scope accurately — cheap bids recovered through change orders damage relationships. (3) Include bid clarifications that define your scope boundaries (detailing included or excluded, erection included or excluded, primer only or full paint). (4) Know your floor — the minimum margin that covers your overhead and provides the return you need. Don't bid below the floor.
What This Means for Your Shop
The fabricators who consistently win profitable work are not always the lowest bidder — they're the most reliable. GCs pay a small premium for fabricators who deliver on time with clean drawings and minimal field issues. Build a reputation as the reliable option.
Common Mistakes
Bidding below floor to 'win' and then trying to recover through change orders. This strategy damages GC relationships and is usually not successful anyway — aggressive change order recovery requires documentation most fabricators don't maintain.
Recommended Process
For each bid, run a full cost build-up: material + connection material + labor + overhead + profit. Compare to market pricing as a sanity check. If your price is 15%+ above market, investigate which cost category is driving the gap — don't assume the market is wrong.