A steady flow of incoming projects is needed to run a successful construction business;Construction Contracts This involves trying to win more bids and achieving a low bid-hit ratio. A bid-hit ratio is the percentage of projects that you successfully bid on. For example, a ratio of 10:1 means that you only win one out of every ten bids.
To improve your bid-hit ratio, you must prepare a competitive proposal every time you bid on a project. The exhaustive process demands knowledge and skills. You need to read the fine print to fully understand the plans and specifications and accurately estimate the hard and soft costs of the project.
Here are some tips you can follow to improve your bid-hit ratio:
Find the right job to bid on
Tenders are issued by large corporations and the public sector, and businesses compete for them. These tenders are easily accessible through the many free and commercial online bidding resources, regional and government websites. Don’t blow your money on advertisements. Simply go to the source, where you will find many property owners in need of your services.
Do Not Bid On Every Job
To keep your business profitable, choose the right work to bid on. Take the time to craft an articulate proposal for 3 potential projects that you feel well suited for, instead of wasting your time on 10 projects that you aren’t. Improving the quality of your work can be more beneficial in the long run.
Here are some pointers to follow for selecting projects:
- Stick to your niche. Figure out what you do best and bid on similar projects.
- Search for projects that are likely to bring in repeat business.
- Do not bid on projects that require specialities you don’t have.
Also, if you begin working on a proposal and realise that your company will be unable to meet the scope of the work or adequately complete the project, the best thing to do is abandon the project and simply walk away.
Visit the Project Site
It is critical that you visit the site to gain a better understanding of the project. Only when you visit the site, you will know its ease of accessibility. It will also help you identify the additional costs on transportation, material storage, equipment charges that you may incur if the project is awarded to you.
Attend Pre-Bid Meetings
Pre-bid meetings might be your only opportunity to seek clarity and understand –in detail- the project at hand. It allows you to interact with the project team and get the much-needed information for when you sit down with your team to create a competitive winning bid proposal.
Perform Accurate Construction Take-offs and Measurements
Run the project through a fine-toothed comb. Consider labour, material, equipment, overhead and all the other soft and hard costs associated with the project. Examine the plans and specifications in detail to determine accurate measurements and construction takeoffs. This will give you get a realistic construction estimate and by extension an accurate bid. Utilise technology to expedite the process.
Cut down your math errors, as they have a devastating impact on your bid. Input the data into the software correctly. Use the right units of measure when calculating your bid. Ensure that your measurements are taken from the right place. Inaccurate measurements will lead to either over-or underestimating your construction costs. Always double check your work. Your build estimate is critical to make a winning bid.
Construction Contracts, Complete the Bid Forms and Documents
Ensure you complete the bid form and submit all required documents to have a winning chance. Required documents and paperwork can include anything from bid bonds to acknowledgement receipts of any addenda. Double-check everything before you submit the bid. It is recommended to have a fresh set of eyes look over the bid proposal to check if everything is in order.
When you prepare your bid, do not overlook the many requirements that come with it. Get prequalified to bid on a project, if it is required. Attend all mandatory pre-bid meeting and site visits. And most importantly submit your proposal on the due date and time. All the requisites will be mentioned in the bid.
The following points may also help you improve your chances:
- Faster Turnaround: Beat the ‘bid-fatigue’ blues by turning in your bid earlier than your competitors.
- Your potential client may raise questions or concerns at some point in the bidding process. Try to understand the root of these objections to answer them better.
- Your bid can include a section highlighting your team’s key responsibilities, skills, qualifications, or any relevant key competencies. List out all key features of the projects that your company has worked on in the past so you can back up your responses with references.
- Liaise with potential clients.
- Adapt to changes in the industry or economy to stay competitive and resilient during testing times. For instance, during the COVID-19 pandemic, contractors who typically bid on commercial jobs shifted their focus to residential projects, where the demand was highest and some did quite well.
- Track your bid-hit ratio and set goals: Your bid-hit ratio indicates the overall success of your bidding efforts. Set goals for the future by reviewing your bid-hit ratio over the past quarter. Keep track of what you did differently in each project to help you win the bid.
Construction Contracts, How can we help?
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We work round the clock to give you a sound mechanical, electrical and thermal insulation estimations. We use our experience, diligence and state of the art estimating software to thoroughly evaluate your project and give you a competitive advantage. There isn’t much out there that can keep us from providing you with an accurate construction estimate, that will enable you to put your best foot forward and win more work. We have access to exclusive discounts with leading estimating software providers here in the UK .Get in touch with us today .
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