{"id":6662,"date":"2024-01-03T07:39:00","date_gmt":"2024-01-03T12:39:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=6662"},"modified":"2026-02-12T04:10:51","modified_gmt":"2026-02-12T09:10:51","slug":"five-tips-help-you-bid-smarter","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/five-tips-help-you-bid-smarter\/","title":{"rendered":"Five tips to help you bid smarter"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tConstruction<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tFive tips to help you bid smarter\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tRob Arkes<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

In an attempt to win more work, many construction firms are treating the bidding process like a numbers game. If you bid on as many jobs as you can, surely you will land more bids, right? Wrong.<\/p>\n\n\n\n

What you might not realize is that you\u2019re actually increasing overhead costs as you invest time on bids you have little chance of winning. This is especially worrisome when facing a labor shortage. Plus, you\u2019re not focusing on the types of jobs that are most profitable for your business. You have to bid smart to get the projects you really want\u2014 projects that fit both your strengths and profit goals.<\/p>\n\n\n\n

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Improve your bid-hit ratio<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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You have to bid smart to get the projects you really want.\u00a0 Here are our top 5 essentials of a winning bid strategy.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload Now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n\n

Here are \n\n\tfive things you can do now to help you bid smarter<\/a>\n.<\/h3>\n\n\n\n
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  1. Know\u2014and track\u2014your bid-hit ratio<\/h2>
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    Do you know what your bid-hit ratio is? If not, you\u2019re missing out on an important way to measure the success of your bidding process. A bid-hit ratio is the rate at which you successfully bid on projects. Construction firms of all sizes can benefit from making that simple calculation to compare the number of bids sent out to the number of jobs won.<\/p>\n\n\n\n

    This shouldn\u2019t be a one-off calculation. Your bid-hit ratio should be tracked over time. Try breaking down your bid-hit analysis into categories such as public versus private, profit margin, estimator, contract or job type and size, and geography. This analysis will provide valuable information that can help you improve your bidding odds. It can reveal where to focus your bidding efforts in the future\u2014and the projects to avoid\u2014so you can optimize your bid strategy.<\/p>\n\n\n\n

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    1. Understand your true job costs<\/h2>
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      To improve both your bid-hit ratio and profitability, you need to clearly understand your true job costs. Stiff competition means you have to nail the price of your bid, so your firm not only wins the work, but also maintains a nice profit margin.<\/p>\n\n\n\n

      Using job cost accounting software<\/a>, you can get the information you need about job costs\u2014from labor and materials to overhead and profitability. The software can help you identify where you\u2019re making the most profit and where you\u2019re not. You can examine job costs by different categories such as job type, customer, project manager, or cost code. Reviewing these details eliminates the guesswork, helping you get project estimates as close to the final job costs as possible.<\/p>\n\n\n\n

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      Sage Estimating Test Drive<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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      Take Sage Estimating for a spin.\u00a0Get in the driver’s seat with this step-by-step guided tour and experience the ease of use of this powerful and flexible solution first-hand.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tStart test drive<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"Construction\t\t\t<\/div>\n<\/div>\n\n\n\n

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      1. Add some face time during the bid process<\/h2>
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        Creating quick and accurate estimates certainly increases your chances of submitting a winning bid but it often takes more than that to set your proposal apart from the competition. There\u2019s no substitute for personal interaction when cultivating a business relationship. One way you can improve your bid strategy is to add a meeting\u2014preferably face to face\u2014with the decision maker.<\/p>\n\n\n\n

        Face time with the prospective client is not only a great way to build rapport but it provides you with an opportunity to ask questions that go beyond what\u2019s covered in the RFP. You can really get a feel for what they\u2019re looking for and prepare your bid accordingly. Consider questions such as:<\/p>\n\n\n\n