A Detailed Guide for Winning More Construction Bids
Construction bidding is a process through which companies and contractors win projects. You may have the expertise to carry out a construction project effectively—however, bidding works quite differently. Check this link for more information on how to find construction jobs to bid on.
If you have been struggling to win construction bids, follow the 10 tips in this guide to make things easier for you and your team.
10 Tips for Construction Bidding
Although construction bidding is crucial, many contractors don’t follow a pattern and lose projects. That also wastes the company’s time and money. To avoid all these mishaps, follow these 10 tips to make a powerful construction bidding proposal:
1. Bid on the Right Project
Remember that not every project is for you. Many contractors without experience think bidding on every project will get them the job. But unfortunately, this approach yields them nothing.
The construction industry is diverse, and every project differs from the others. That means you must invest good time in the following for each project:
- Research – Understand the type of project and analyze the requirements
- Project scope – The construction activities of the project
- Regulations – Legal requirements by the metropolitan and development bodies
- Requirements – Client’s requirements in the bidding stage
So, bid on the right project after gathering all the details relevant to your expertise.
2. Visit the Construction Site
The paperwork is not enough to help you understand the project’s requirements. You must visit the construction site and observe the situation.
Another advantage of visiting the job site is you will attend the pre-construction meetings with the client and managers. Some clients make it mandatory to attend these meetings. Otherwise, you will not get the job.
Therefore, go to the construction site and attend the meetings. That will help you understand the project better and build a strong network with the client.
3. Measure Accurately
The client expects to see the right estimate of the construction measurements, for example:
- Area – Land’s area for activities like excavation
- Volume – Space required to install an object
- Weight – The weight of the resources like cement, sand, and iron
You can only roughly estimate these values as the client asked in the requirement. But be careful when writing the measuring units. For example, write the final draft in meters if you use meters. Similarly, use grams if you use grams throughout the document.
Even the slightest mistake in the measurement can make you lose the project, as it shows carelessness.
4. Create a Risk Plan
According to a study, construction workers have a 75% chance of experiencing a disabling injury over a 45-year career. That’s why the construction industry is notorious for the workers’ health and safety.
Due to this reason, the client wants you to highlight the risk factors and make an assessment. You can pick previous construction studies and prepare the risk document to satisfy the client’s requirements.
You must remember that risks are unexpected, and no one can avoid them. Nevertheless, making a sound risk plan is the best way to mitigate the risks.
5. Consider Your Profit
You must consider your company’s profit while estimating the costs because it’s about surviving in the market. Although lowering the cost can get you the job, that doesn’t coincide with your company’s financial goals.
The three highest costs include:
- Equipment cost – Buying or renting construction equipment
- Subcontractor cost – Subcontractors’ pricing
- Wages – Daily wages of the laborers
So, give leverage to your company and balance the costs so that the client doesn’t find the bid expensive and you don’t face a loss.
6. Mention Your Qualifications and Skills
Many clients want to know the contractors and their expertise, but they barely mention that in the requirement document. However, you must summarize such details and include them in the bidding proposal.
Qualifications and skills weigh similar to the cost you ask for the project, and some clients appreciate qualified contractors. Remember to include proof with each qualification or skill to help the client easily validate your credibility.
7. Follow the Client’s Requirements
The client’s requirements are carefully analyzed as they include the format of a bidding proposal. Usually, companies publish a Request for Proposal (RFP) which outlines the project requirements and asks for bids.
So, you must carefully read the RFP and follow the details included in that document while preparing the bidding proposal.
8. Invest in Technology
Since technology has made its way into every industry, it’s better to invest in modern construction tools to simplify the bidding process. These tools can provide you with the following features:
- Scheduling – Create the project schedule and make a timeline for all construction activities
- Budget estimation – Estimating project costs after submitting the construction input factors
- Resource management – Manage resources to utilize them and improve savings efficiently
Also Read: What You Need to Understand About Tilt Panel Construction in Brisbane
9. Check Your Bidding Document Before Submission
Once you have completed the bidding proposal, thoroughly check it. Then, again, check it and compare it with the RFP. You can also get help from another contractor or construction manager to review the bidding document.
Some clients don’t tolerate even the slightest mistake and will reject your bid once they find one. Therefore, it’s better to be cautious than to be rejected.
However, you must be prepared for anything because sometimes it’s just not your day, or someone else has submitted a better proposal than yours.
10. Submit the Bidding Proposal Before the Deadline
Finally, submit your bidding proposal before the final date. For example, if the proposal submission is January 2nd, submit your proposal before January 2nd. That will leave a good impression on the client.
Another advantage of early proposal submission is that your client will filter your document and label it as a priority because it’s submitted before the final date. So, follow our tips and tricks to create a winning construction proposal and submit it before the deadline to get the job you want.
Construction bids are getting more complex with the advancement in the industry. But if you follow the right pattern during the bidding process, you can keep your company alive in the market. So, implement the above bidding tips to boost your bid-hit ratio and stay one step ahead of your competitors