By David Skuodas, Mile High Flood District & Jim Moody, Colorado Contractors Association 

Construction contractors don’t have the capacity to bid on every public project that’s advertised. With finite capacity and, to some extent, choices about who they want to work with, contractors gravitate to projects with clients who treat them fairly, pay on time, and don’t make their life harder than necessary.

Don’t believe us? Then please believe the 40 horizontal construction contractors who responded to a recent Colorado Contractors Association survey. The results shown in the graphic accompanying this article paint a clear picture of what matters most to the professionals who build our infrastructure.

What the Data Tells Us

The survey asked contractors to rate 15 categories based on how likely each would impact their pricing, with categories ranging from plan quality to payment timeliness. Contractors were then asked to rate public agencies they’ve worked with recently for those same 15 categories, to give each agency an idea of how contractors view them as potential customers. Each anonymized agency is represented by a letter column, and each category score is color-coded: green for “Very Good,” yellow for “Average,” and red for “Poor.” The leftmost column shows how many contractors (out of 40) rated each category as being important when deciding how to price a project.

So, what rises to the top?

Plan Quality is key. When plans are clear, contractors can bid confidently and execute efficiently. When plans are unclear or contradictory, contractors have to guess and guessing means padding their bids to cover unknowns and likely arguments over change orders. It’s not just about avoiding mistakes; it’s about building trust. 

We’ve heard stories of contractors passing on projects simply because the plans were a mess. One contractor said, “If I can’t trust the plans, I can’t trust the project.” Another said, “I’d rather take a smaller job with good plans than a big job with bad ones.”

Fairness and Consistency matter just as much. Project managers and inspectors are the face of your agency. Their consistency, fairness, and dependability are ranked just behind plan quality. Contractors want to know that when issues arise (and they will), they’ll be treated fairly and that decisions will be made reliably.

We’ve seen agencies dissuade prospective bidders simply because their inspectors had a reputation for being arbitrary or combative. On the flip side, agencies with fair, dependable staff attract the best teams and get better results. 

It’s also important to empower consultant field engineers. If field engineers aren’t empowered to make decisions and must run every question up the chain of ownership command, it can drag out schedules. Waiting a few days for an answer can feel like schedule purgatory to a contractor.

Timeliness is the silent dealbreaker. Three of the top six categories are about timeliness: progress payments, utility coordination, and change order approval. If payments are slow, or if approvals drag on, it can put a contractor in a bind because their employees and suppliers expect timely payments. When contractors routinely wait a long time to be paid, they remember and they price your next project higher as a result.

One contractor said, “I’ll add 10% to my bid if I know payments will be slow. I can’t afford to float the agency’s cash flow.” Another said, “Delays in utility coordination can kill a project. I know public agencies can’t control everything, but if they’re known for dragging their feet, I’ll think twice before bidding one of their jobs.”

Transparency rounds out the list. Contractors appreciate agencies that make their processes clear and predictable. Whether it’s prequalification, dispute resolution, or contract approval, openness builds confidence.

If we create an atmosphere of ambiguity or uncertainty, contractors are left to make assumptions that may or may not be in the agency’s favor. An estimator said, “I bid uncertain scope items very differently depending on how much work is out there. When an abundance of work is available, I’ll take any uncertain scope of work on a project and assume worst-case scenario in my bid to ensure I doesn’t lose money.” Simply put: a lack of clarity or predictability usually means higher costs. 

A few years ago, a couple of projects received either no bids or astronomical bids when the client tried to pass along the risk of groundwater contamination with very little definition of the quantity or scope.  Not knowing the volume or makeup of contaminated groundwater creates a huge risk to a contractor, so they’ll either pass on the project or price it high.

What Else We Can Infer from the Survey

Looking at the graphic, a few patterns emerge:

• Agencies with mostly green cells are likely magnets for contractor interest. They probably get more bids, better prices, and attract the best teams.
• Agencies with red cells likely face a hidden tax: higher prices, fewer bids, and sometimes outright avoidance.
• Yellow cells are a warning sign. “Average” might sound okay, but in a competitive market, it’s not enough to stand out.

At the bottom of the graphic, two questions drive the point home: Interest in Future Projects with this Agency? and Pricing Risk Factor Applied to this Owner? These are the ultimate measures of your reputation. If contractors aren’t interested in working with you again, or if they’re adding a risk premium to your projects, you’re paying for it whether you see it or not.

We’ll note that many of the agencies with yellow and red cells do still attract contractors. In some cases this is a reflection of agencies being larger and having a high volume of work available, but these agencies are usually paying a premium for construction and their tax dollars don’t go as far as a result.

Contractors learn to adapt to whichever mode of business an agency becomes known for. As one contractor put it, “Do you want to be collaborative? We can be collaborative. Do you prefer to be combative? We can be combative. We’ll figure out how to be profitable either way.”

What Agencies Can Do to Improve

So, what’s the takeaway? The survey graphic isn’t just a report card, it’s a roadmap to becoming a preferred client for the best contractors. Here are a few actionable steps:

1. Invest in Plan Quality: Pay your designers fairly to make sure your plans are clear, complete, and accurate. Review your plans with contractors before bidding to get feedback if possible. Quality plans continue to pay dividends both during construction and for the long-term.
2. Train Your Staff: Project managers and inspectors should be consistent, fair, and dependable. Teach them people skills, not just technical skills.
3. Streamline Processes: Speed up payments, approvals, and coordination. Contractors notice and reward efficiency and reliability. Having easy processes is a competitive advantage.
4. Seek Feedback: Ask contractors for honest feedback after each project. Use it to improve.
5. Be Transparent: Make your processes clear and fair. Contractors appreciate openness – ambiguity is the enemy.

Conclusion: Good Clients Get Good Results

The survey graphic is more than just a colorful grid; it’s a reflection of each agency’s reputation in the marketplace. Agencies that score well attract the best contractors, get better prices, and build better projects. Those that don’t score well pay a premium, both in dollars and in reputation.

So, as you look at the graphic, ask yourself: What colors would show up for your agency? And what can you do to turn more cells green?

Because in the end, being a good client isn’t a popularity contest. It’s smart business.