Brief
Preconstruction is critical to the success of your construction projects—and your business. However, when it comes to bidding, construction firms are not always as strategic as they could be. Could your bids use some help?
Insight
In today’s competitive market construction businesses are always looking for ways to stand out. While project performance and deliverables have a huge impact on business reputation, it is important to put your best foot forward before a project even begins.
Preconstruction is critical to the success of your construction projects—and your business. However, when it comes to bidding, construction firms are not always as strategic as they could be. Could your bids use some help?
Three ways to give your bids a boost include improving your bid-hit ratio, utilizing technology, and adding a personal touch.
Improve Your Bid-Hit Ratio
Do you know what your bid-hit ratio is? If not you’re missing out on an important way to measure the success of your bidding process.Your bid-hit ratio is the rate at which you successfully bid on projects; it looks at the number of bids sent out compared to the number of jobs won. It is important to know your ratio and to track it over time and by project type.
Pay close attention to what types of projects you’re bidding on and where you have the most success. Consider breaking down your bid-hit analysis by different categories such as job type, job size, estimator, profit margin, public versus private, or geography. This can help provide more meaningful insights as to where you should focus more attention as well as the types of projects you might avoid.
In an attempt to win more work too many firms treat bidding as a numbers game, bidding on as many jobs as they can. However, bidding on projects you have little chance of winning ties up resources you could use elsewhere. Be strategic and bid smarter to get the projects that align with both your strengths and profit goals.
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