Question 1

What are common insurance policies for commercial builders?

Emily Johnson · Accepted Answer

Common insurance policies that commercial builders use as a part of their risk management strategy include general liability insurance – which covers third-party bodily injury or property damage claims – and builder’s risk insurance, which provides coverage for damage to the construction project during construction.

Question 2

What’s the difference between builder’s risk and general liability?

Emily Johnson · Accepted Answer

Builder’s risk insurance provides coverage for damage to the construction project itself, such as from fire, theft or vandalism, while general liability insurance protects against third-party claims for bodily injury or property damage that happen as a result of the construction activities.

Question 3

Why is construction insurance important?

Emily Johnson · Accepted Answer

Construction insurance is an important component of a builder’s risk management strategy. It helps protect construction companies, contractors and project owners from financial loss and legal liabilities that may arise during the construction process.

Question 4

What is construction bidding software and how does it work?

Katrina Meyer · Accepted Answer

Construction bidding software helps builders streamline the bidding process by sending, comparing and organizing bid requests in one place. With Buildertrend, you can keep subcontractors in the loop via email, text or push notifications, set deadlines and convert accepted bids into contracts with just a few clicks.

Question 5

How does construction bidding software help save time and improve accuracy?

Katrina Meyer · Accepted Answer

Instead of managing bids through email threads or spreadsheets, Buildertrend keeps everything centralized. You can easily track bid status, access supporting documents, compare responses side-by-side and select the best option faster and with fewer errors.

Question 6

Can subcontractors submit bids through Buildertrend without an account?

Katrina Meyer · Accepted Answer

Yes. Subcontractors don’t need a Buildertrend account to submit a bid. They’ll receive an email with a link to review the scope of work, view attached files, ask questions and submit their bid online, making the process quick and simple.

Question 7

What’s the difference between bidding and tendering in construction?

Katrina Meyer · Accepted Answer

“Tendering” is the process of requesting pricing for a specific scope of work, while “bidding” is when subcontractors respond with their proposed cost. In Buildertrend, you can manage both, sending out tenders and collecting bids in one place.

Question 8

Why should I use Buildertrend’s bidding feature instead of managing bids manually?

Katrina Meyer · Accepted Answer

Buildertrend eliminates the chaos of manual bid tracking. You can send bid invites to multiple subs, attach drawings or specs, compare responses and roll accepted bids into purchase orders or contracts – all from one system. It’s faster, more professional and helps you win jobs with the right team in place.

Question 9

How do you calculate a construction contingency?

Emily Johnson · Accepted Answer

Calculating a construction contingency involves estimating potential risks and setting aside funds to cover unexpected costs during a project. A simple approach is to use a percentage of the total project budget, typically 5–10%, depending on project complexity, location and risk factors.

Basic formula: Construction contingency = Estimated project costs × Contingency percentage + known high-cost risks

For example, if your project budget is $400,000 and you choose a 7% contingency with $10,000 set aside for likely material delays, your contingency fund would be:

$400,000 × 7% = $28,000

$28,000 + $10,000 = $38,000 total contingency

Using this method helps ensure your budget accounts for unforeseen expenses, protects your margins and keeps your project on track without surprises.

Question 10

What’s an average percentage for a construction contingency?

Emily Johnson · Accepted Answer

Many residential projects use anywhere from 5% to 10% of the total estimated project cost for their construction contingencies.

Question 11

What’s the difference between a construction contingency and an allowance?

Emily Johnson · Accepted Answer

A contingency is an additional fee or percentage tacked onto a project to help mitigate unforeseen financial risks. An allowance is a preset amount given to clients to provide flexibility in the selections process.

Question 12

How much should be allocated for construction contingencies?

Emily Johnson · Accepted Answer

Allocations for contingencies will vary depending on the project and the level of risk involved. Some risk factors to consider when deciding on the percentage are site conditions, size of the project and expected timeline.

Question 13

When should a contingency be used?

Emily Johnson · Accepted Answer

A construction contingency should be used when unexpected delays or expenses occur during a construction project. It’s used to cover the additional costs or to adjust the timeline.

Question 14

What types of costs can be covered by a contingency?

Emily Johnson · Accepted Answer

A contingency can cover a range of unexpected costs during a construction project. Some examples are unforeseen site conditions, changes in project scope, unplanned repairs, delays in timeline and regulation changes such as building codes or zoning requirements.

Question 15

What happens if I don’t have a contingency?

Emily Johnson · Accepted Answer

When you don’t have a contingency in place, delays or changes to the project can lead to significant financial damage and timeline disruptions. Even if you’re an expert planner, a lot can happen during a project. A contingency is a smart way to manage that risk.

Question 16

How does the SOV relate to the project's payment process?

Emily Johnson · Accepted Answer

An SOV serves as a financial roadmap. It provides a detailed breakdown of completed work, allowing for accurate invoicing and payment. Combined with resources such as online payment processing, it can also help ensure you’re paid faster.

Question 17

What role does the SOV play in project management?

Emily Johnson · Accepted Answer

An SOV provides project management with a comprehensive breakdown of a project’s costs. This helps support budget tracking, progress monitoring and financial management as defined by a construction contract. By consulting an SOV, project managers can allocate resources, maintain financial transparency with clients and make informed decisions to keep a project on track.

Question 18

What happens if there are disputes in the schedule of values?

Emily Johnson · Accepted Answer

If a schedule of values is disputed, builders and clients may compare it to the project contract for accuracy. If disputes persist, both parties should pursue resolution based on the contract.

Question 19

What is the difference between an SOV and a construction estimate?

Emily Johnson · Accepted Answer

An SOV is a detailed financial document used for progress tracking and payment management during construction. A construction estimate provides an initial approximate cost for the entire project before work begins.

Here are the results for "What to look for when you’ve outgrown your construction software"

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Buildertrend spotlight: Customer Success with Scott Siegert

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The advantages of commercial builder’s risk insurance

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Construction Bidding Software

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The role software plays in the success of your construction business

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Consultants bring the power of Buildertrend Down Under

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Construction contingency guide for residential builders (with examples)

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The importance of schedule of values (SOV) in construction

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The new normal: Why renewable resources are the future of construction

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