Winning construction bids can be extremely challenging in today’s growing market. The construction industry is highly competitive, with numerous companies vying for the same projects.
Moreover, low-profit margins, changing project scopes, and extensive requirements make it more difficult for contractors to land favourable jobs.
With increasing challenges, construction companies could use all the help they could get to win more bids. This includes using contractor bidding software to streamline certain processes in forming proposals.
Creating winning bids requires skill, experience, and, most importantly, strategic planning. Numerous tactics and tools, like contractor building software, can help construction companies expand their work opportunities in the current developing industry.
To strengthen their bidding procedures, contractors can implement the following strategies:
Go After Good Leads
Although it may not seem like it, going after every project available is inefficient; contractors will benefit more by carefully assessing project requirements and the clients when bidding.
Before going through with a bid, construction companies should ask themselves:
- Do we have the expertise, resources, and equipment to carry out this project to high standards?
- Can we accomplish the project within the given time frame?
- Are we the right company for this client?
These questions help contractors focus on quality bids. Taking on fewer projects that the company can accomplish excellently offers greater long-term benefits than working on multiple jobs and producing mediocre results.
Prioritizing quality over quantity can improve a company’s reputation, inspire brand loyalty, and boost conversions.
Even after successfully acquiring a bid, contractors can still withdraw from projects deemed unfavourable for the business. This is especially important when the construction company cannot accomplish the project within standards.
Research Your Client
Knowing your client is essential to forming a compelling bid. Doing research helps you find details that can strengthen your proposal. It can help you identify potential risks and opportunities and include your intended actions or solutions in the bidding proposal.
Develop a competitive advantage by understanding who your client is, what they require in a contractor, and how you can bring value to the project.
Comprehensive client research includes the following steps:
· Research Client History
A client’s history can tell so much about what they want in a contractor. Inquire about the client’s experience with other contractors and distinguish the elements you can bring to the table to improve the client’s project experience.
· Identify Project Requirements
It is important to identify the client’s requirements to ensure that the company can provide high-quality service throughout the project. Otherwise, you might find yourself incapable of satisfying the client’s vision. Additionally, you should always clarify with the client the requirements they have for their contractor.
· Scout the Competition
Acquiring information about your competitors is an opportunity to set yourself apart. For instance, if a contractor offers slightly lower prices, you can find areas of your takeoff to save money to compete with their offer.
· Review Relevant Documents
Most of the time, the client includes pertinent documents that help contractors understand their vision. You should take the time to analyze any available document to ensure you develop a tailored proposal that caters to the client’s needs.
· Evaluate Client Budget
A contractor’s primary concern should be its profitability. After securing that, you should create a proposal with takeoff and estimates that can satisfy the client’s budget while ensuring profit.
· Develop a Tailored Proposal
The last step in the client research process is using all the gathered data and information to develop a tailored proposal that compels the client to give you the project.
Ensure Accurate Estimates
Estimates are the heart of bidding proposals. It contains information that helps clients choose a winning bid. Accuracy in estimates is critical as it involves measuring, quantifying, and estimating the costs of materials and labour needed for the project.
Ensuring reliable estimates is of the utmost priority for contractors, as precision in this aspect comes with the following advantages:
- It prevents overruns, delays, and disputes from occurring during the span of the project.
- It presents opportunities to set the company apart from competitors and provide value to clients by finding ways to cut costs in construction.
- It builds the client’s trust in the company, increasing brand loyalty and reputation.
Construction companies can ensure the accuracy of estimates through contractor bidding software. It is a tool for practical documentation, precise estimation, and effective project management that aids in forming a compelling bidding proposal.
Develop a Comprehensive Portfolio
Apart from presenting reliable estimates, a contractor’s portfolio greatly affects clients’ decision-making. Creating a comprehensive work portfolio is essential to win more bids. It is an opportunity to showcase the company’s capabilities, expertise, and past successes.
A well-crafted portfolio helps potential clients visualize the quality of the work the company can deliver, giving them the confidence to choose that company over its competitors. A comprehensive portfolio should include the following:
- Company profile
- Past project descriptions, documentation, and supporting media
- Testimonials from satisfied customers
- Awards and recognition
- Certifications and accreditations
To make proposals more impactful, including previous projects relevant to the client company’s vision is vital.
Additionally, the portfolio should be visually appealing and easy to navigate, with clear descriptions and explanations of the projects included.
By creating a comprehensive work portfolio, construction companies can differentiate themselves from their competitors and increase their chances of winning more bids.
Increase Your Value
It is easy to assume that you lost a bid because a competitor underbid you. In these cases, it is better to focus on improving the company to become invaluable to prospects. After losing a bid, contractors should maximize their performance in their existing projects to strengthen their future proposals.
Each project reflects the business. You will likely land more clients when you finish jobs on time (or early), within budget, and with great results. Contractors operate optimally by ensuring the project progresses according to the agreed timeline.
Managing all the documents, personnel, and materials involved in construction projects can be challenging. This is why it is necessary for building companies to use construction software to keep track of every project aspect.
Ready for More Winning Bids?
Expand your company’s work opportunities by adopting powerful strategies to win more construction bids. Make it a practice to identify favourable leads, research your clients, create compelling proposals, and improve operations. With these strategies, you can set yourself apart from your competitors and win more bids.
Get started by installing reliable contractor bidding software. Bizprac offers prime construction solutions like document management software that spans from complete takeoff creation to comprehensive project management.
Satisfying thousands of companies in Australia, we have provided highly convenient digital tools that empower managers to boost productivity, stimulate collaboration, and produce compelling bidding proposals for their construction projects.
Schedule a free demo with Bizprac today.