Fewer Projects, Fiercer Competition: Win More Construction Bids

For months, construction spending has declined, leaving contractors navigating a more competitive environment. From high interest rates and labor shortages to increased material costs and economic uncertainty—the road ahead looks challenging.

But here’s the thing: While spending has slowed, it hasn’t stopped. There are still billions of dollars in construction projects being planned, bid on, and built. In a market with fewer opportunities, winning available work is even more critical.

To stay competitive, contractors need every advantage they can get. That starts with preconstruction takeoff software. Faster, more accurate takeoffs mean better estimates, quicker bid turnarounds, and a stronger shot at landing the job.

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Construction Spending Is Down: What That Means for You

According to a July 2025 report from the Associated Builders and Contractors (ABC), nonresidential construction spending dropped 0.2% in May 2025, bringing the seasonally adjusted annual rate down to $1.237 trillion. This marks the fourth consecutive month of decline, with spending falling in half of the 16 nonresidential categories tracked by the agency.

The private sector was hit the hardest, showing a 0.4% decline in May alone. This even affects large-scale projects, like hotel room construction, which hit a 20-quarter low in summer 2025. Meanwhile, public sector construction spending remained flat.

What’s contributing to this slowing trend? It’s a mix of things, including:

• High interest rates
• A tight lending environment
• Policy uncertainty around tariffs, taxes, and immigration
• Ongoing labor shortages

All of this makes it risky for developers to move forward with planned construction projects. Choosier developers and fewer projects means increased competition for available jobs.

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Fast, Accurate Takeoffs Are Your Competitive Edge

In this high-stakes environment, the construction firms that can bid faster and smarter have a clear advantage. So why not automate and accelerate your takeoff? It’s one of the most expensive and time-consuming steps in preconstruction, after all.

That’s where preconstruction takeoff software from Togal.AI makes all the difference. Instead of manually measuring plans, Togal.AI empowers estimators to process drawings in seconds, with 97-98% accuracy.

Here’s how Togal.AI helps contractors win more bids:

1. Create your project and upload your plans: It’s easy to upload documents, organize files, and Togal’s AI autonaming tool will rename your documents in seconds.
2. Execute your takeoff, expedited by AI: Quickly detect, measure, count, compare, and label project spaces and features.
3. Collaborate and share in real time: Cloud-based collaboration allows multiple team members to work on the same takeoff, at the same time, so nothing ever falls through the cracks.

The result? Faster, more confident bids that give you a better shot at winning work — especially when competition is fierce.

This isn’t just talk. Contractors using Togal.AI have seen impressive results:

• Coastal Construction reduced their estimating workload by 40%, saving over $1 million and 10,000 hours annually.
• NC Painting increased their bid rate by 215% within two months of adopting the platform.
• Total Flooring Contractors took off a 30-story highrise in 48 hours and won the project.

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Bid and Win, Even in a Competitive Market

Construction spending may be slowing, but the industry isn’t stopping. Projects are still being built. Bids are still going out. But now more than ever, winning those bids takes precision, speed, and smarter workflows.

With AI-powered tools like Togal.AI, estimators and contractors can adapt to today’s tighter market and set themselves up for long-term success. Because when opportunity is scarce, execution is everything.

Fewer projects. More competition. Smarter takeoffs. That’s how you win. Book a demo with Togal.AI today!