{"id":44821,"date":"2026-07-09T11:41:51","date_gmt":"2026-07-09T06:41:51","guid":{"rendered":"https:\/\/www.my-equipment.com\/blog\/?p=44821"},"modified":"2026-07-09T15:57:23","modified_gmt":"2026-07-09T10:57:23","slug":"how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages","status":"publish","type":"post","link":"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/","title":{"rendered":"How Contractors Are Bidding Differently In 2026, Amid Tariffs And Labor Shortages"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Bidding was a numbers game based on predictable material costs, predictable labor pools and historical project data. That doesn\u2019t quite hold steady in 2026. A new Dodge Construction Network survey, conducted in partnership with CMiC, provides a clear picture of an industry changing its playbook in real time, and the numbers show why contractors across the country are tightening contract terms, improving their bids and rethinking how they plan their fleets.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#Tariffs_Are_Now_a_Bidding-Table_Fact\" >Tariffs Are Now a Bidding-Table Fact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#Pricing_competition_is_getting_more_aggressive\" >Pricing competition is getting more aggressive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#Labor_shortages_are_altering_project_timelines\" >Labor shortages are altering project timelines<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#The_Numbers_at_a_Glance\" >The Numbers at a Glance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#Contractors_are_Still_Optimistic_Under_Pressure\" >Contractors are Still Optimistic Under Pressure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#What_this_means_for_your_equipment_strategy\" >What this means for your equipment strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/#Construct_a_Fleet_That_Is_Just_as_Hardworking_as_You_Are\" >Construct a Fleet That Is Just as Hardworking as You Are<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Tariffs_Are_Now_a_Bidding-Table_Fact\"><\/span><b>Tariffs Are Now a Bidding-Table Fact<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tariffs are no longer a concern in the background, they are showing up directly in the numbers on projects. The survey revealed that tariffs have already added to costs for 91% of contractors, a near-universal experience across the industry. This is not a risk to plan for in the future, it is a present-day line item forcing companies to rethink how they price jobs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, the bidding approach becomes more tentative and defensive. Contractors are constructing larger contingencies, requiring escalation clauses and, in some cases, walking away from bids that don\u2019t have enough room to absorb swings in material costs.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Pricing_competition_is_getting_more_aggressive\"><\/span><b>Pricing competition is getting more aggressive<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Costs are rising, you would expect that to thin the field but it\u2019s the opposite happening. Aggressive pricing competition is a major challenge for 84% of contractors in 2026, according to the survey. Everyone is bidding tighter even as their own input costs are rising, a combination that&#8217;s squeezing margins from both directions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Adding to this, 62% say contract terms are becoming less favourable with risk continuing to cascade downstream to subcontractors and smaller firms. Those companies getting work at the moment are the ones that can work with tighter margins without compromising equipment reliability or project schedules.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Labor_shortages_are_altering_project_timelines\"><\/span><b>Labor shortages are altering project timelines<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Pressure point is not only cost either. Workforce gaps are hurting schedules just as much. According to the survey, 65% of contractors report schedule impacts stemming directly from skilled labor shortages, and 76% point to retirements as the top driver of workforce attrition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An ageing workforce leaving faster than it\u2019s being replaced and fewer skilled hands, means project timelines are more difficult to forecast. Contractors are compensating by adding more buffer to schedules and using equipment that is easier to operate, easier to maintain and less likely to require specialized downtime.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Numbers_at_a_Glance\"><\/span><b>The Numbers at a Glance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td><b>Survey Finding<\/b><\/td>\n<td><b>Percentage<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors reporting tariff-related cost increases<\/span><\/td>\n<td><span style=\"font-weight: 400;\">91%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors are citing aggressive pricing competition<\/span><\/td>\n<td><span style=\"font-weight: 400;\">84%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors citing unfavorable contract terms<\/span><\/td>\n<td><span style=\"font-weight: 400;\">62%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors&#8217; reporting schedule impacts from labor shortages<\/span><\/td>\n<td><span style=\"font-weight: 400;\">65%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors citing retirements as a key attrition driver<\/span><\/td>\n<td><span style=\"font-weight: 400;\">76%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors expect inflation to reduce construction volume in 2026<\/span><\/td>\n<td><span style=\"font-weight: 400;\">84%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Contractors who remain optimistic about 2026 performance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">74%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Contractors_are_Still_Optimistic_Under_Pressure\"><\/span><b>Contractors are Still Optimistic Under Pressure<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">That\u2019s the part that gets lost in all the cost labor headlines. 74% of contractors still say they are optimistic about their company\u2019s performance in 2026. That\u2019s not blind optimism, it\u2019s a sign that companies are adapting. Instead of just absorbing the hit, many are turning to technology and smarter financial planning to help offset the pressure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The survey also showed that contractors using AI-enabled tools are realizing significant efficiency gains, especially in areas such as automated proposal generation and contract risk review. It\u2019s a reminder that the firms that are thriving in this environment aren\u2019t necessarily the biggest, they\u2019re the ones that are making sharper, faster decisions.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_this_means_for_your_equipment_strategy\"><\/span><b>What this means for your equipment strategy<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">New equipment costs are rising due to tariffs and it\u2019s getting harder to schedule around labor, so every piece of equipment in your fleet has to earn its keep. In this environment, overpaying for new machinery ties up capital that you might need for contingencies, and equipment downtime from labor gaps in maintenance crews can upset an entire project\u2019s schedule.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is precisely where having a well-maintained used machine helps you win. <\/span><a href=\"https:\/\/www.my-equipment.com\/\"><b>Used heavy equipment<\/b><\/a><span style=\"font-weight: 400;\"> that has been inspected and properly documented allows you to invest in areas that are most important, such as bid margins, crews, and contingencies, without compromising the dependability required to meet deadlines.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Construct_a_Fleet_That_Is_Just_as_Hardworking_as_You_Are\"><\/span><b>Construct a Fleet That Is Just as Hardworking as You Are<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<blockquote><p><span style=\"font-weight: 400;\">This is precisely the kind of environment that MY-Equipment assists contractors in navigating: growing expenses, more competitive bids, and uncertain deadlines. Look through our selection of inspected, operational dozers, excavators, wheel loaders, and cranes, or speak with our staff right now about locating machinery that preserves rather than depletes your profits.<\/span><\/p><\/blockquote>\n<p style=\"text-align: center;\"><span style=\"font-size: 18pt;\"><strong>Don\u2019t forget to subscribe to our YouTube channel for more equipment offers and insights into the industry. <\/strong><\/span><\/p>\n<p><center><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/Nni3IEZSDA8?si=CS9_zGu-m450s0I5\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bidding was a numbers game based on predictable material costs, predictable labor pools and historical &hellip; <a href=\"https:\/\/www.my-equipment.com\/blog\/2026\/07\/how-contractors-are-bidding-differently-in-2026-amid-tariffs-and-labor-shortages\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;How Contractors Are Bidding Differently In 2026, Amid Tariffs And Labor Shortages&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":44823,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1155,126],"tags":[4925,4903,4936,2149,2348,2591,4466,4365,3952,4342,4931,4937,4933,4929,4932,4941,4924,4938,4014,2762,4942,800,2792,4928,4935,237,4667,2646,1042,3220,4930,4934,4927,2561,4940,4939,4926,47,1923,49],"class_list":["post-44821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feature","category-news","tag-construction-bidding-2026","tag-construction-business-growth","tag-construction-business-profitability","tag-construction-cost-management","tag-construction-equipment-costs","tag-construction-equipment-demand","tag-construction-equipment-pricing","tag-construction-equipment-solutions","tag-construction-fleet-optimization","tag-construction-industry-insights","tag-construction-industry-trends-2026","tag-construction-market-analysis","tag-construction-material-tariffs","tag-construction-project-bidding","tag-contractor-bidding-challenges","tag-contractor-bidding-process","tag-contractor-bidding-strategies-2026","tag-contractor-equipment-planning","tag-contractor-profit-margins","tag-cost-effective-construction-equipment","tag-equipment-acquisition-strategies","tag-equipment-financing","tag-equipment-procurement-strategies","tag-equipment-purchasing-strategies","tag-fleet-management-for-contractors","tag-heavy-equipment-dealers","tag-heavy-equipment-industry-trends","tag-heavy-equipment-market-2026","tag-heavy-equipment-suppliers","tag-heavy-machinery-investment","tag-infrastructure-contractors","tag-labor-shortage-solutions","tag-labor-shortages-construction-industry","tag-machinery-cost-savings","tag-project-cost-estimation","tag-smart-equipment-investments","tag-tariffs-impact-on-contractors","tag-used-construction-equipment","tag-used-equipment-market","tag-used-heavy-equipment-for-sale"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Contractors Are Bidding Differently In 2026, Amid Tariffs And Labor Shortages<\/title>\n<meta name=\"description\" content=\"Tariffs, labor shortages and pricing pressure are reshaping how contractors bid in 2026. 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