The Best Strategies To Win in Construction Bidding
Most construction companies and contractors approach project bidding by offering the lowest price. However, with advancements in technology, the bidding process has become more intricate.
Thus, it’s imperative that you know the strategies required to secure contracts. These strategies will also help you improve your bid-hit ratio while earning a significant profit. Construction companies only bid on the most suitable projects that meet their pre-established criteria.
This guide and the one from Bridgit share a list of secret tips for becoming a successful construction bidder.
The construction bidding process
When a construction company takes on a large project (whether industrial or residential), it’s often split into various parts, such as plumbing, mechanics, sewer construction, and more. Contractors working on the job can invite various subcontractors to bid on these parts of the project since they possess specialties.
9 helpful construction bidding tips
Here’s how you can go about construction bidding.
1. You need to bid smartly
In various construction bidding marketplaces, you’ll come across hundreds of projects. However, you’ll likely only select quality assignments. Bidding on irrelevant and unnecessary undertakings not only wastes your time, but also your capital.
Always remember to select projects as per your available resources. Focus on projects that can offer repeat business. It’s best to avoid projects which require certain specialties you might not have. You may lose valuable resources and damage your reputation if you fail to execute it correctly.
2. Identify the decision-makers
Most subcontractors waste precious time by interacting with people who don’t have the authority to make the final decision. So it’s recommended that you learn about the primary decision-makers of the project. An excellent way to learn about them is by understanding their organizational structure.
Once you have identified the principal heads, spend as much time with them as you can. Building a personal relationship with these people will not only build trust, but also help you build connections in the industry.
3. Double-check your paperwork
Before submitting your bid proposal, you must double-check each detail of the paperwork. Most of the building proposals are rejected due to missing or incomplete documents.
So before making a bidding proposal, you can try forming a checklist and then hire an expert to double-check the papers. You should also attend all the pre-bid meetings with the client so that you can get a clearer picture of the client’s requirements and bid accordingly.
4. Break down your proposal
Before bidding on a project, you must understand what the project owners expect of you. It’s crucial for design details.
So to understand better, get in touch with previous subcontractors who have worked with the client and ask about requirements. While pitching to the client, break down the cost of each of your requirements, like material cost and equipment allocation charges.
Additionally, you also need to mention in your proposal the return on investment that clients will gain while working with you. Therefore, it’s crucial that you backup your information with concrete data using case studies.
5. Learn about the project
If you want to win the bid, you should learn everything about the project. Firstly, you have to visit the construction site and ensure that there are no complications. You can also talk to local authorities to know if you must complete any legal documentation.
While proposing, you must include these costs. This will not only help you get the deal, but will also save you some money.
6. Use digital technology to boost productivity
Manual paperwork and calculation can be incorrect at times, even if you review your paperwork multiple times. To avoid such instances, you can enlist the help of various digital software platforms to get the correct estimates and measurements.
Moreover, relying on software will allow you to track labor data and fill productivity gaps more efficiently. These tools come with built-in features that allow you to monitor your resources remotely so that you can optimize their usage.
7. Conduct risk assessment
Another essential step to winning a bid is risk assessment. Knowing about the various risks associated with the project will help you build risk mitigants to complete the project in time and increase your chances of earning more profit.
Simply identify, control, and then analyze the risk before any problems arise. You may also consider making a risk assessment plan, which should also be a part of your bidding proposal.
8. Get your bid early
Submitting your bidding proposal before anyone else will significantly impact your probability of winning bids. It’s common that the first bid will get the most attention.
So make sure you’re ready with all the paperwork and estimates before the deadline. If, by any chance, you miss the deadline, it can have a negative impact on your profile.
9. Adapt to changes
If you’re flexible and can adapt to industry changes, you can stay ahead of the competition during difficult times. For example, during the pandemic, the construction rate of residential complexes increased tenfold while commercial construction fell. All subcontractors who submitted bids for commercial projects immediately shifted their focus to the projects where there was heavy demand.
While it’s recommended that you don’t wander from your area of expertise, responding to the changes in industry trends will allow you to diversify your experience and get better opportunities.
Win bids more effectively with the right strategies
Today’s bidding environment is quite competitive and complex. However, you can get a head start with the help of these strategies. If you have the right tactics and tools in place, you’ll be spending less time bidding and more time winning bids.