In the construction industry, bidding is a prime focus and a source of frustration. Winning bids are the lifeblood of the company, and oftentimes contractors find themselves bidding on everything to just get something. The long-term effects of this will be a hit to your bid-to-win ratio, as well as devaluing what your company brings to the table. Worst case scenario is you’re finding yourself unprofitable and subsequently losing employees, losing dependability, and losing clients. Mastering the bidding process is necessary for the longevity of your company.
Bid on the Right Jobs
Don’t bid on every job that comes your way. When you’re in the habit of spending hard earned time on creating bids for every project you lay your eyes on, you may lose your ability to complete the projects you should focus on. Reading over the request for proposal, and understanding your company’s ability or inability to fulfill the requirements is an important first step. Know what your company has to offer and stick to the jobs that fit that profile. Your value will shine when a job is the right fit.
Learn to Say No
Know your limits. Part of mastering the bidding process is learning when to say “no” to an invitation. While it can be tempting to take on a project that doubles your workload, it is an unwise move. Don’t bite off more than you can chew, but do learn to feel confident bidding on jobs that would comfortably stretch your skill level. Pay attention to the needed level of equipment, finances, and skills that a job requires. Keep your bid-to-win ratio high by saying no when the scope of work is outside of your expertise and ability.
Assess the Process
Assessing your company’s processes in terms of proposals will keep your ideas fresh and will help you find the areas where you’re falling short. Make sure to read all the details of the RFP before spending your hard earned time and money on crafting a bid. RFP’s always include a wealth of information and a list of requirements. Don’t skim over this. You can create a prize winning bid and lose out because your company was disqualified based on a missing required document. There is nothing worse than spending all that time creating a surefire bid, only to be knocked out of the running because of an oversight.
Bid to Win
Once you have the basics down, you can shift your focus to creating bids that win. Efficiency and accuracy in your proposal may seem like a no-brainer, but this is where things often go left. Include all of the requirements, no matter what. Produce a compelling bid that boasts of your company’s strong points, knowledge of the project, and dedication to quality. The last step will be to present a well-manicured bid. A professional and polished document will always work in your favor. The small things add up to the big wins. Wasting your time bidding on every invitation takes away time you could spend on getting the bid right for the right projects.
Accuracy is Everything
Sound like a broken record? A good proposal is built on the foundation of accuracy. You winning the bid AND you making a profit depends on your accuracy. If you don’t have a cost estimator that works for your company, you can outsource this work. Another option is to invest in estimation software which will free up time and manpower, while also delivering quotes with astounding accuracy. Mastering the bidding process cannot happen if hours are spent correcting human error.
Offer Financing Options
At HFS Financial, we can help connect your clients to a loan for any of their home improvement needs. All it takes is a click on our widget and 60 seconds of their time to start the application. Offering a financing option to your client can seal the deal for their acceptance of your bid. Check out our website for additional information, and don’t hesitate to reach out! We are looking forward to working with you and helping boost that bid-to-win ratio!