Economic slowdown and construction demand shrinkage reduces the profit backlog for construction contractors and bites into their profit margin. The resulting fierce competition for jobs forces construction companies to look for more sophisticated analytical tools to analyze and improve their bidding strategies. For each contractor, bidding strategy is a decision-making process that is driven by the firm’s financial goals with the final objective of maximizing the firm’s gross profit and surpassing the breakeven point. This paper proposes a methodology to model and analyze different bidding strategies with hybrid agent based-system dynamics (ABSD) simulation.