Public works projects can create great opportunities, but not every project is the right fit for every contractor.
We usually focus on labor compliance topics like prevailing wage, certified payroll, apprenticeship, and subcontractor reporting. Those requirements are important, but they are only part of the decision. Before bidding, contractors also need to consider the project’s cost, schedule, staffing needs, subcontractor support, and administrative workload.
This broader review is becoming even more important. In a 2026 survey of 262 U.S. contractors from Dodge Construction Network and CMiC, 64% said they are shifting to more selective bidding as their primary growth strategy. Those same contractors reported aggressive price competition, compressed schedules, material cost increases after bids were submitted, and the loss of skilled workers.
So, before asking “Can we win this project?”, it’s important to ask “Is this project right for us?”
Here are five areas to review before making that call.
1. Do the numbers still work?
A competitive bid still needs to leave enough room to complete the project successfully.
Construction costs remain a concern. According to an Associated General Contractors of America analysis, inputs to new nonresidential construction were 8.9% higher in August 2026 than a year earlier.
Before finalizing your estimate, consider:
- Prevailing wages and fringe benefits
- Materials and equipment
- Subcontractor pricing
- Overtime and schedule-related costs
- Insurance, bonding, and indirect costs
- Payroll, reporting, and administrative work
Then ask:
- Does the bid still work if costs increase or the schedule changes?
2. Do we have the right people available?
A project may look good on paper but still cause problems if the right people are not available.
The 2026 AGC-NCCER Workforce Survey found that 87% of respondents had openings for hourly craft workers. Labor shortages involving contractors or their subcontractors also contributed to project delays for 42% of respondents.
Before bidding, ask:
- Do we have the right trades and experience?
- Can our crews realistically meet the schedule?
- Are key supervisors and project staff available?
- Will this job pull people away from other work?
- Can we meet any apprenticeship or workforce requirements?
The question is not just whether you can staff the project, but whether you can do it without overextending your crews or burning out your team.
3. Can our subcontractors support the plan?
For prime contractors, dependable subcontractor coverage is a key part of building a realistic bid.
In the Dodge and CMiC survey, 68% of contractors reported inadequate bid coverage from specialty trades.
Before relying on subcontractor pricing, ask:
- Is the full scope covered?
- Are pricing assumptions and exclusions clear?
- Can subcontractors meet the schedule?
- Will lower-tier subcontractors be involved?
- Does everyone understand the project requirements?
- Who will handle payroll, documentation, and corrections?
On Davis-Bacon covered projects, prime contractors and subcontractors performing covered work are generally responsible for complying with the applicable prevailing wage and reporting requirements. Setting expectations early can help reduce surprises later.
4. What still needs to be clarified?
Not every unanswered question should stop a bid. But important details should not be left to guesswork.
Dodge and CMiC found that 80% of contractors reported declining quality of design documentation in bid packages, while 62% cited increasingly unfavorable contract terms.
Before bidding, confirm:
- Is the scope clear?
- Is the schedule realistic?
- Do we have the cash flow to cover upfront costs and potential payment delays?
- Are the payment and retainage terms workable?
- Is the funding source clear?
- Are there unusual contract requirements?
- Have the labor and reporting requirements been identified?
Sometimes the answer is not an immediate “go” or “no-go” decision. It’s “clarify before you go.”
5. Can we manage the project after we win it?
Winning the work is only the beginning.
Once the project starts, someone needs to manage payroll, documentation, subcontractor submissions, corrections, and other project requirements. On covered federal and federally assisted construction, contractors and subcontractors generally submit required payroll information weekly with a signed Statement of Compliance.
Before bidding, ask:
- Who will manage the compliance process?
- Can field information reach payroll on time?
- Can subcontractors follow the same reporting schedule?
- Who will catch and correct missing information?
- Do we have the time and staff to manage this every week?
Assigning responsibility early is much easier than trying to build a process after work has started.
Go, Clarify, or No-Go?
A pre-bid review does not need to be complicated. Most opportunities will fall into one of three categories:
| GO | The numbers work, the right people are available, the risks are understood, and your team can manage the project. |
|---|---|
| CLARIFY | The opportunity looks promising, but an important question about cost, scope, staffing, schedule, contract terms, or labor requirements still needs an answer. |
| NO-GO | The margin is too thin, the schedule is unrealistic, the necessary people are unavailable, or the project requires more risk or administrative support than your company can reasonably take on. |
Walking away from a project does not mean walking away from growth. Sometimes, being selective protects the people, time, and resources you need for the right opportunity.
So, before your next bid, ask: “Can we win this project?” Then ask: “Should we?”
If the answer is yes, having the right processes in place can make the work easier to manage. LCPtracker helps contractors simplify certified payroll and prevailing wage reporting, stay organized, and keep labor compliance responsibilities on track throughout the project.
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These materials are being issued with the understanding that LCPtracker is not engaged in rendering legal or other professional services and is providing these for informational purposes only. If legal, accounting, or tax expert assistance is required, the services of a competent legal, accounting or tax professional should be sought.