10 Tips for Bidding on Construction Projects

bidding on construction projects

Subcontractors bidding for work on construction projects face a number of challenges to submit a winning proposal. Effective bidding requires confirming the client’s requirements and budget while also ensuring your costs and profit margin are fully covered. Overbidding risks losing the job to a low-balling competitor. Conversely, a bid that is below your actual expected costs eliminates profit potential.

Here are ten tips to increase your chances of a successful, profitable bid:

  1. Meet with or speak to the prospective client/contractor. Discuss requirements and what will be necessary to fulfill expectations.  
  2. If blueprints are available for the project, inspect them. If the job site is accessible, conduct a walk-through.
  3. Estimate the days involved to complete the work and look for special circumstances or complications that could impact the cost of getting the job done on schedule.
  4. Figure costs of materials and work hours involved as well as any other likely overhead. Allow for unexpected expenses. Estimate daily costs then multiply by the expected number of days to completion.
  5. Determine your preferred profit margin and add that figure into the total.
  6. The formal written bid must include name, business address, and other relevant contact info. Summarize the work to be done and state expected start and completion dates. Include payment terms as well as the terms of any warranty.
  7. Itemize all estimated costs for materials and labor. These figures may be subject to negotiation with the client, so allow for changes, if necessary. 
  8. Arrange for a meeting with the client to present the bid. Be prepared to verbally describe all details of your planned work. 
  9. Expect to negotiate terms, including completion time and costs, if required. Decide in advance what your negotiated limits will be.  
  10. Following the presentation, provide the prospective client with business cards. Arrange a follow-up call or other meeting to provide additional information or answer further questions.

Get an edge when bidding on construction projects by utilizing data from building permits. Contact the professionals at Construction Monitor for more information.

How to Close More Construction Deals

Even though there are many signs of recovery within the construction industry, owners and managers must still place substantial importance on finding new customers and additional business. Here are some suggestions you can use to increase your chances of attracting additional construction leads and closing more deals.

  • constructionUnderstand your position in the industry: Many companies are versatile and offer numerous services, but recognize that no single company can be everything to everyone. Determine what offerings make your company different from your competitors. For example, do you specialize in a certain type of construction — residential, industrial, commercial? Do you have employees with unique skills that customers appreciate?
  • Thoroughly understand the sales process: Remember that a major portion of what you do will involve sales and customer service. Refine these processes and how you deal with prospects at all points in the sales funnel. Study and apply proven techniques that are designed to increase sales and customer interest.
  • Become an expert at bidding: Bidding on a project can be a complex process, but you and your staff must be highly skilled at all components. From reading and understanding requests for proposals, to making cost estimates, to writing proposals; each element of bidding must be handled professionally and flawlessly.
  • Market your company: Apply effective marketing techniques to help create a strong reputation and an impression of high perceived value. Clearly define and present the unique selling proposition (USP) that differentiates you from others in the industry.
  • Go the “extra mile” for your customers: This has become almost cliche, but the truth behind the statement is that your customers will appreciate and remember companies that go out of their way to ensure a successful project. Make sure you can complete the project on time or earlier. Offer additional suggestions that could improve the project or help cut costs.

Construction Monitor gives construction industry professionals the inside information they need to successfully expand their operations, either into their current geographical region or into new areas. Contact us today for more information on how to win more business and secure more deals for your company.