With plenty of construction work available, it’s not about just winning projects these days; it’s about winning projects that will make you a profit. In past posts, I’ve covered how to determine which projects you should target. That’s the first step. Next is to make sure you have the right bid strategy to win the jobs you want most.
Sage covers the top five essentials of a winning bid strategy in its “Improve your bid-hit ratio” guide. Here’s a glimpse of what’s inside:
- Know—and track—your bid-hit ratio. If you don’t know your bid-hit ratio (number of bids to number of jobs won) you’re missing out on an important way to measure the success of your bidding process. While it’s important to know your overall bid-hit ratio, the real insight comes from analyzing it across meaningful breakdowns such as project type and geography.
- Understand your true job costs. Get your project estimates as close to the final job costs as possible by using real-time cost performance data. When you’re confident that your costs are accurate, you can focus more on your markup strategy.
- Add some face time to the bid process. Sometimes there’s no substitute for personal interaction when cultivating a business relationship. In your discussion, ask the prospective client about those items that aren’t in the RFP such as the top criteria they are using to evaluate bids.
- Give your bids an extra boost. Once you’ve met with the decision maker, add some compelling differentiator to your proposal. In addition to offering a competitive price, demonstrate how your firm will go above and beyond expected levels of quality and service.
- Improve accuracy and speed. Estimating software can help here by providing electronic takeoff, BIM integration, improved analysis, and built-in error protection. Contractors using this type of technology have reduced the speed of preparing estimates by 50 percent or more while increasing accuracy.
Are you confident that your bid strategy is on target? Learn more about how to develop a winning bid strategy by downloading the “Improve your bid-hit ratio” guide.