How to Get Welding Contracts Successfully Even If You Just Launched your Business Newly

Do you own a welding business and want more commercial, construction or government contracts?

If YES, here is a practical step-by-step guide to finding welding jobs, preparing competitive bids and winning recurring contracts in the United States.

One of the biggest differences between working as a welder and running a welding business is that being good at welding does not automatically bring contracts to your door.

Welding Business ideas

As a business owner, you may also have to handle:

  • Finding customers;
  • Estimating jobs;
  • Preparing proposals;
  • Purchasing materials;
  • Scheduling;
  • Insurance;
  • Safety;
  • Payroll;
  • Collections.

Depending on the contract, you may supply the labor only, labor and equipment, or the entire project including materials.

You therefore need to understand exactly what the customer is asking you to provide before submitting a price.

Welding Project ideas to Sell for Profit

Do You Need a Welding License to Get Contracts?

There is no single nationwide welding license that every independent welder in the United States must obtain before accepting work. The requirements depend on:

  • The state and local jurisdiction;
  • The type of welding;
  • The industry;
  • The project;
  • The customer’s specifications;
  • Whether contractor licensing rules apply.

For example, a small shop fabricating decorative furniture may face very different requirements from a contractor welding structural steel, pipelines or pressure-related components.

You should distinguish between:

  • Business licensing – permission to operate your company;
  • Contractor licensing – required for certain construction work in some jurisdictions;
  • Welder qualification or certification – evidence that you can produce acceptable welds under specified procedures;
  • Project-specific requirements – additional standards imposed by the owner, engineer or prime contractor.

Before bidding, find out what applies to the particular job rather than assuming one welding certificate qualifies you for every type of work.

12 Steps to Get Welding Contracts Successfully

1. Decide What Type of Welding Contracts You Want

Do not market yourself simply as: “We do welding.” That is too broad. Decide which types of contracts you can competently perform.

Possible niches include:

  • Mobile welding;
  • Structural steel;
  • Gates and railings;
  • Agricultural equipment repair;
  • Construction equipment repair;
  • Trailer fabrication;
  • Stainless-steel fabrication;
  • Aluminum welding;
  • Industrial maintenance;
  • Pipeline work;
  • Marine fabrication.

Your niche determines who you should approach. A welder who fabricates residential gates should spend more time building relationships with contractors and property managers than chasing oil-field pipeline projects.

2. Make Your Welding Business Contract-Ready

Before aggressively chasing contracts, make sure your business can survive winning one. Depending on your operation, this may involve:

  • Registering the business;
  • Obtaining applicable local licenses;
  • Opening a business bank account;
  • Obtaining liability insurance;
  • Obtaining workers’ compensation where required;
  • Commercial auto insurance for mobile operations;
  • Establishing safety procedures;
  • Creating accounting and payroll systems.

Commercial customers may request certificates of insurance before allowing you onto a jobsite. Larger projects may also impose:

  • Bonding requirements;
  • Higher insurance limits;
  • Drug-testing policies;
  • Background screening;
  • Site-specific safety requirements.

Do not wait until the day before a bid closes to discover you cannot meet the customer’s basic requirements.

3. Obtain the Welding Qualifications Your Target Market Requires

A general welding course can give you useful skills, but commercial buyers are often more interested in whether you are qualified to perform the particular weld required by their project.

A qualification may specify:

  • Welding process;
  • Material;
  • Position;
  • Thickness;
  • Joint configuration;
  • Applicable code or procedure.

If you want structural, pipeline or other specialist contracts, research the qualifications normally requested in that market. Do not claim certifications you do not hold.

And do not assume that passing one welding test qualifies you to perform every welding procedure.

4. Build a Professional Capability Statement

A capability statement is particularly useful when approaching contractors, industrial companies and government buyers. You must keep it concise. Include information such as:

  • Company name;
  • Core welding services;
  • Service area;
  • Equipment capabilities;
  • Relevant certifications or qualifications;
  • Industries served;
  • Past projects;
  • Insurance;
  • Business contact information.

If you pursue government work, you can also include applicable:

  • UEI;
  • CAGE Code;
  • NAICS codes;
  • Small-business certifications.

A capability statement should answer one basic question:

“Why should this buyer trust your company to perform this work?”

5. Build a Portfolio of Completed Welding Work

Commercial buyers want proof. Photograph your best completed projects. Depending on your niche, document:

  • Before-and-after repairs;
  • Gates;
  • Railings;
  • Structural fabrication;
  • Trailers;
  • Custom steelwork;
  • Industrial repairs.

For larger jobs, keep records showing:

  • Scope of work;
  • Project value;
  • Completion date;
  • Customer type;
  • Work performed.

A strong project history becomes increasingly important as you pursue larger contracts.

6. Identify Companies That Regularly Buy Welding Services

Instead of waiting for customers to search for you, build a list of organizations that regularly need welding.

Potential Client Possible Welding Work Person to Approach
General Contractors Structural steel, stairs, railings, miscellaneous metal Estimator or project manager
Manufacturers Repairs, fabrication and maintenance Maintenance or purchasing manager
Farms Equipment, gates, trailers and repairs Owner or farm manager
Property Managers Railings, gates, stairs and repairs Property or facilities manager
Equipment Rental Companies Equipment and attachment repairs Service manager
Trucking Companies Trailer repairs and metal fabrication Fleet or maintenance manager
Industrial Plants Maintenance and shutdown work Maintenance or procurement

Create a spreadsheet or customer-relationship system containing:

  • Company;
  • Decision-maker;
  • Phone number;
  • Email;
  • Services they may need;
  • Date contacted;
  • Next follow-up date.

Contract acquisition becomes much easier when you treat it as a repeatable sales process.

7. Build Relationships With General Contractors

You do not have to win every project directly from the property owner. General contractors frequently need subcontractors for:

  • Structural steel;
  • Railings;
  • Stairs;
  • Miscellaneous metals;
  • Repairs.

Contact contractors in your market and ask how to become an approved subcontractor or bidder. Be prepared to supply:

  • Insurance;
  • Qualifications;
  • References;
  • Safety information;
  • Completed-project examples.

A reliable relationship with several general contractors can become more valuable than spending heavily on consumer advertising.

8. Start With Smaller Subcontracts if Necessary

A new welding company may struggle to convince a large industrial client to award it a major contract immediately. Subcontracting gives you a way to build:

  • Experience;
  • References;
  • Cash flow;
  • Commercial project history.

You might provide welding services to:

  • Larger fabricators;
  • Mechanical contractors;
  • Steel erectors;
  • Industrial maintenance companies;
  • Prime government contractors.

Perform smaller projects exceptionally well and use them to build the credibility required for larger work.

9. Register for Government Contract Opportunities

Federal, state and local governments purchase construction, repair, maintenance and fabrication services.

If you want to compete directly for federal contracts, establish the appropriate registration through SAM.gov.

The registration process provides your business with a Unique Entity ID. You can then research federal contract opportunities that match your capabilities.

Also investigate:

  • State procurement portals;
  • County purchasing departments;
  • City procurement websites;
  • Public universities;
  • Transportation authorities;
  • School districts.

Do not assume that every government welding opportunity will be described simply as “welding.” It might appear under a broader contract for:

  • Construction;
  • Metal fabrication;
  • Facility maintenance;
  • Equipment repair;
  • Structural steel.

10. Look for RFPs, RFQs and Invitations to Bid

Different buyers use different procurement methods. You may encounter:

  • RFP – Request for Proposal;
  • RFQ – Request for Quotation;
  • IFB/ITB – Invitation for Bid.

Read the solicitation carefully before deciding to bid. You must check the:

  • Scope;
  • Drawings;
  • Specifications;
  • Schedule;
  • Insurance;
  • Bonding;
  • Qualifications;
  • Payment terms;
  • Submission deadline.

Do not spend hours estimating a project only to discover afterward that you do not satisfy a mandatory requirement.

11. Attend Pre-Bid Meetings and Site Visits

If the customer schedules a pre-bid meeting or site visit, attend whenever practical. A drawing may not show:

  • Difficult access;
  • Existing damage;
  • Working-height challenges;
  • Traffic restrictions;
  • Limited equipment access;
  • Other site conditions.

Those conditions can dramatically change the cost of performing the work. Ask questions before you submit your price.

12. Prepare and Submit a Compliant Bid Package

Government and larger commercial customers may reject a bid even when the price is attractive if required documents are missing. Your package might require:

  • Bid form;
  • Price schedule;
  • Insurance;
  • Business information;
  • Welder qualifications;
  • References;
  • Past performance;
  • Safety information;
  • Bonding documents;
  • Signed acknowledgments;
  • Other solicitation-specific forms.

Create a checklist from the solicitation and verify every item before submission.

How to Price a Welding Contract Correctly

Do not follow the advice to simply “set your prices as high as possible.”

And do not automatically become the cheapest bidder. Price the actual cost and risk of performing the project. Your estimate should include:

Cost Examples
Labor Welder hours, helpers, supervision
Materials Steel, aluminum, stainless steel, hardware
Consumables Wire, electrodes, gas, grinding and cutting discs
Equipment Rental, crane, lift or special tools
Transportation Fuel, delivery and mobilization
Outside Services Galvanizing, painting, powder coating or testing
Overhead Insurance, office, shop and administration
Contingency Reasonable allowance for defined project risks
Profit The return required for taking on the project

A simple way to think about your bid is:

Materials + Labor + Equipment + Subcontractors + Overhead + Risk Allowance + Profit = Bid Price

Never forget the small expenses. Grinding discs, shielding gas, drill bits, travel time and equipment wear can quietly destroy your expected profit when multiplied across a large project.

Do Not Bid From the Drawings Alone

Read the entire scope and specifications. For example, your price may need to include:

  • Material procurement;
  • Shop drawings;
  • Fabrication;
  • Transportation;
  • Installation;
  • Painting;
  • Testing;
  • Cleanup.

If you price only the welding hours, you can win a contract that loses money.

Ask for Deposits or Progress Payments Where Appropriate

Cash flow matters, particularly on fabrication projects requiring substantial material purchases. Your contract might provide for:

  • Initial deposit;
  • Payment after fabrication;
  • Payment after delivery;
  • Final payment after installation.

Commercial and government contracts may have their own payment rules, so understand them before bidding.

A profitable contract can still damage your business if you have to finance materials, payroll and equipment for months while waiting to be paid.

How to Find Welding Contracts

Use several channels rather than depending on one.

General Contractors

Ask to be added to their subcontractor and bid lists.

Industrial Facilities

Contact maintenance and procurement departments.

Property Managers

Offer repair and fabrication services for gates, stairs, railings and other metalwork.

Government Procurement

Register in the appropriate federal, state and local procurement systems.

Prime Contractors

Look for larger contractors seeking smaller welding and fabrication subcontractors.

Local Businesses

Approach trucking companies, farms, manufacturers, equipment companies and construction firms directly.

Referrals

Ask satisfied commercial customers to introduce you to contractors and companies they work with.

Your Website

Clearly display:

  • Services;
  • Service area;
  • Project photographs;
  • Qualifications;
  • Contact information.

Your website should make it obvious whether you specialize in residential fabrication, mobile repair or commercial industrial welding.

Consider Getting Help With Government Contracting

Government procurement can be confusing when you are new to it. APEX Accelerators provide assistance to businesses interested in government contracting and can help with matters such as:

  • Contracting readiness;
  • Registration;
  • Opportunity research;
  • Small-business certifications;
  • Bidding.

This can be particularly useful before spending money on consultants promising to obtain government welding contracts for you.

What Makes a Welding Contractor More Likely to Win Repeat Work?

Price matters, but repeat commercial work also depends on reliability. Customers remember contractors who:

  • Show up when promised;
  • Submit accurate estimates;
  • Communicate delays quickly;
  • Follow safety procedures;
  • Produce acceptable work;
  • Keep the site organized;
  • Complete documentation;
  • Finish on schedule.

If you perform well on a $5,000 repair, the same customer may trust you when a $100,000 fabrication project becomes available.

Do Not Chase Contracts That Are Too Large for Your Business

A large contract is not automatically a good contract. Before bidding, you must ask:

  • Can I finance the materials?
  • Do I have enough qualified workers?
  • Do I have the required equipment?
  • Can I meet the schedule?
  • Can I satisfy the insurance requirements?
  • Can I survive the payment terms?

Growing gradually is often safer than winning one enormous job that exhausts your cash and overwhelms your operation.