Unfortunately, in a competitive environment such as construction bidding, you will often lose more than you will win. It is a complicated process that requires preparation and skill. Apart from construction talents, there are still many factors you should consider if you want to get the best out of bidding processes.
Software developed by Dallas Nugent from Canada and other experts can significantly help in organizing such endeavors. Also, getting ready for a solid deal requires getting familiar with all the plans and specific details. This knowledge can help you estimate the price, materials you should use, and other supplies. Even a slight error can make a difference between winning and losing a bid.
The primary goal of every contractor must be to increase their bid-hit ratio. Although this aspect varies from sector to sector, you should strive towards 4:1 for private projects and 10:1 for public ones. This article will explain how to generate more success when it comes to bidding and, therefore, reach more clients.
Be selective with your bidding projects
Chasing every available job may be a huge mistake. Picking the ones you are well suited for is far better than choosing ten for which you aren’t. Even worse, selecting a project that you are not adequate for can end up being even more costly than missing on it.
Go for the quality over quantity, and focus on things that you are good at. Success on jobs that you go for will result in more business offers and recommendations. A happy customer can grant you new projects while looking for a new one can take much more of your precious time.
Consider the money aspect carefully. Before making an offer, you should determine whether there are good chances of making a satisfying profit after the job is done. If you realize you can’t handle the requirements, it is wiser to just skip the deal.
It is also vital to avoid getting involved in too many jobs you cannot complete but also making sure you get enough of them. Creating a balance is tricky, but it will keep your workers happy and (not too) busy.
Show your qualifications and deliver value
Always emphasize the reason why your crew is the best for the particular job. Don’t be shy to self-promote and display your values – a solid reputation and experience can often tilt the scales to your advantage.
Promote your unique values and aspects you are good at rather than just focusing on the price. With advanced technology, everyone can easily track the lowest bids. Sure-bid offers you access to the right projects at the right time, which is why landing a job was never easier.
Don’t sell yourself short. Market your crew as responsive and responsible – it is the best way to distinguish yourself from the competition.
Be present at construction sites and attend the required pre-bid gatherings
It is essential to be aware of construction site conditions. If the site isn’t easily accessible or is too far, it can play a significant role in assessing the costs of crucial aspects. These include the expenses of transport, the required gear, and labor, which are major contributors to the final price of the project. If you don’t visit building sites and assess the situation, you may not be aware of additional expenses, and this can significantly reduce the profit you can gain.
The best way to clarify goals and requirements for the projects is through pre-bid meetings, which often take place at construction locations. At these meetings, the teams that are in charge of the particular projects solve dilemmas regarding plans and other important aspects. The details you learn there will answer all your questions and help you proceed with the job. You get a chance to walk around the site and get a better understanding of the conditions you’re dealing with.
Attending these meetings is required. If you don’t do it, you won’t be able to even make an offer.
Learn more about your competition
Getting to know your competition is of vital importance, as well as understanding their strengths and weaknesses. This can help you analyze the aspects of your business model better, compare it to others, and realize what parts of your plans can be improved. Learning about other people’s mistakes is a much smarter tactic than experiencing them yourself.
Making sure that the project will be completed on time is essential, and preparing a detailed schedule will add some more confidence in your work. The plan you are working on should include essential elements, such as preconstruction, procurement, construction, and post-construction info. This is especially beneficial for the clients who pay extra fees for each additional working day if the project gets delayed.
If you are able to meet deadlines, the reputation of your team will increase and make you a top choice for the business. Long story short, be accurate and realistic, as clients will look into every detail and estimation you prepare for them.
Calculate the labor costs
Calculations of labor costs can be time-consuming, as they depend on various factors. Specifically, you need to estimate the number of working hours and hourly wage and also consider the productivity level. The expenses also get affected if the workers are absent or get injured. Employees with more experience will need less time to do the job, which means a fewer number of working hours, but this factor entails higher hourly rates.
Materials and equipment costs
Materials, tools, and gear depend on the type of job and the location where it takes place. These expenses will notably affect the final pricing. Reach out to the architects or the owner if you have doubts about the type of materials and other supplies you need to use.
After making an offer, there’s no going back. When the final preparations are done, all necessary tools must be at your fingertips. This means you might need to buy some extra equipment if the situation requires it or if new requirements emerge.
All items you purchased must be checked. Make sure they are in good working order so they don’t break down and cause unnecessary delays. Don’t forget to count the fuel machines in the price, as it will be necessary for transportation and jobs on site.
Mastering a bidding process is not an easy task. Minor mistakes can make an immense difference between getting and losing the job, which is why doing your homework holds huge value in this line of work. A high level of competition on the market doesn’t make it any easier, but it shouldn’t prevent you from educating and informing yourself. This will help you make more precise evaluations and manage working expenses. Never forget to instill confidence and show your full potential to the client – it will be one of the biggest selling points there is to offer.