You need to be able to successfully bid for construction projects to get a foothold in this industry. This is easier said than done, given how competitive the construction industry has become, and the rate at which demand is shrinking.
Getting in a successful bid is not simply about trying to undercut your competition on price. And bidding on as many jobs as possible may simply be a waste of time and money. Bidding smart is the way to go.
Bid on the Right Jobs
Successful bidding is not a volumes game; throwing your hat into as many rings as possible is not an assurance you will land a project. Instead of rushing to bid on any and every job, take your time to focus on creating a quality bid. Bid only on the jobs where you have a higher chance of winning—those that appeal more to your niche. If a project is outside of your niche, don’t place a bid on it.
A bid with a lower quote may have a higher chance of being selected, but don’t make your sole focus be lowering your price. Instead, highlight your strengths to let the client see what they will be gaining by entrusting you with their project.
Make a Strong Case
More than just offering a fair price, make the client see the value they will be getting by having your team on board. Showcase your qualifications as well as your expertise clearly, backing yourself with examples of successful past projects. In highlighting your strengths, make it clear how you stand out from the competition. For instance, you can talk about how you prioritize excellent customer service.
Dial-in Your Estimates
Your bid should make it clear to the client that they will be getting a good return on their investment. To make this clear, you need to show more than a simple lump-sum number for the estimate. Your best bet is to provide a detailed breakdown of how the construction materials, labor, and other elements add to the figure. As you dive into these details, you need to be sure that your estimates are accurate.
Construction bidding software is one of the ways you can come up with estimates for your bid accurately. These systems provide calculations based on decades of data from the industry, so they are quite reliable. You can also use different methods to come up with the estimate, such as unit costs, assemblies, or square-foot models. The best construction bidding software is cloud-based and allows you to work on your bid from anywhere as long as you have an internet connection.
Be Clear and Concise
Stay focused on the details that matter in your bid document; don’t try to be fancy. Instead of trying to be wordy and presenting it in a convoluted way, keep the language in your bid simple. Ensure the details you have shared can be easily understood.
Your bid document should be informed by facts and not appear as fanciful ideas. It may appear trivial, but the wording you use in your bid document may determine whether it’s discarded at first glance or given serious consideration.
Using long-winded sentences and lengthy paragraphs will cause the reader to lose interest in reading through the entire bid. Try to present your case in as concise a manner as possible.
Stay in Constant Communication
Don’t shrink away when the potential client raises objections to your bid. Take them as opportunities to get to know them better and show them how committed you are to the project. Try to get to the bottom of those objections by asking as many questions as you can. Your persistence may lead to future opportunities; few project owners can resist such dedication to a project, even when you seem to have nothing to gain by pursuing it further.
Bid Like a Pro
Putting together a winning bid is central to the life of any construction business. Therefore, you need to approach your bids with your potential client in mind to increase your chances of winning. Don’t simply try to give them the lowest price in hopes of undercutting your competition; try to make them see the value they will be getting, over and above the matter of cost.
In view of your competition, you need to make sure your bid estimates are as accurate as possible. For this reason, you may want to equip yourself with a software system that will take the guesswork out of the estimation.
