Most people think that the best way to win a construction bid is to develop the most accurate cost estimate and deliver the lowest bid possible. This is not quite the case in the competitive environment; general contractors only manage 1 out of every 6 submitted bids. Some even win as low as 1 in every 35 bids using this method.
In a competitive field such as construction, you need to do more than submitting the lowest bid. You must start biding competitively, which calls for the use of the right strategies.
Here are a few hacks to help you win bids quickly:
1. Be More Valuable
Instead of selling your price when placing a bid, start selling value. If a company has no competitive advantage over its competitors, its service or product becomes a commodity. Whenever you are selling a commodity, the only way to win a bid is by slashing your prices.
When you have a competitive advantage, on the other hand, you can demand a price premium when placing a bid. A price premium is the percentage of your price of goods and services that exceeds the average price available in the market.
Here are a few attributes you can focus on to help you start selling value instead of price:
- Training and experience: If you are looking for a job that requires a particular contractor’s license, there are some requirements you must complete: the Business Law Exam and Rules Exam. Make sure you enroll in a legit training center when preparing for your exam in states likes Arizona. It will help you to gain the necessary skills and experience when bidding for a construction project.
- Reputation: Your team should be known for excellence in the industry.
- Customer service: Your team should provide reliable customer support and service.
2. Be More Productive
Indeed, you’ll enjoy more profit margins if your team is highly productive. It’s easy to think that contractors lose jobs to lower bidders; the truth is most contractors don’t execute their projects cost-effectively. Construction experts recommend that you focus more on the estimating process instead of the costs. Don’t just track the costs of your estimates, but look to improve the overall productivity.
There are many ways to increase productivity in your construction. One of the most effective methods is utilizing construction productivity software to boost safety training. By making these small changes in your company, you’ll be able to save time and reduce costs.
3. Bid First
One of the most underrated hacks to winning more bids is to pre-empt your competitors. You need to be there before your competition. It’s easier to win a bid against three competitors than it would be to win against ten. You can use bidding marketplaces and networks to find projects that interest you.
Being the first to submit the bid increases your possibility of winning. There are numerous online tools to help you find new jobs and to create a company profile that will be shown in the bid searches. This means that with your profile, more project owners can see you and select your company for their projects.
Some of the bidding marketplaces that can help you beat your competitors include:
In today’s market, contractors and other construction professionals find it difficult to win bids while maintaining significant profit margins. Many contractors try to counter this problem by submitting more bids. This causes wastage of time, money, and resources. Using the strategies discussed above can help you increase your odds of winning bids without sending many proposals. You also don’t need to bid the lowest to win a construction project.