How to Win Bids in the Construction Industry

Winning bids in the construction industry increases the revenue of a construction company.

Construction companies make money by winning bids and completing projects. However, it is vital that you understand exactly how much to bid on a potential project so you can actually earn a profit once the work is done. If you want to win bids in the construction industry, you need to understand how not to bid too much for a construction job, present your bids in a professional manner, and consider what your competition is offering. In order to succeed in the industry, you need to be as specific as possible with your bids and include items such as when the project will be done, the amount of money it will take to purchase materials, and leave your company room for error by calculating an extra 5 percent on to the total costs of the project, in case you are off with your estimates.

Instructions

1. Determine the amount of profits you need to generate. Calculate the total expenses involved with the project on which you are bidding. Include factors such as the hours it takes to write a presentable proposal, amount of material costs to begin the job, and the paychecks your workers will receive for this project. Remember to pay yourself the salary you desire, and structure the bid in such a way as to ensure at least a 10 percent profit margin for your company.

2. Use bidding software. Go to the website of smartbidnet.com to look at bidding software options. Once you have learned how to use this software, you will be able to handle things from your computer, make sure your sub-contractors are on task, and give out any paperwork via this system. Use the templates which are provided to give your bids a professional appearance. Note that you will have to obtain additional software to perform the calculations from a website such as planswift.com, if you are not able to perform these calculations by hand. Sign up for the free trials on these websites to see how you like using the software.

3. Learn from your mistakes. Call the companies where you place bids if you do not get the job, and find out what was the winning bid. Determine what factors contributed to another construction company being awarded the job. Keep all of your records in a secure location and figure out what certain companies are looking for in a bid, so you can match your proposals up to their criteria.

References

• Azcentral: Hunt, partners do it all to keep costs low, win bids
• Smartbidnet: Construction Bid Management
• Planswift: Construction Takeoff & Estimating Software