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A Guide for Contractors in Winning More Construction Bidding Contracts




A Guide for Contractors in Winning More Construction Bidding Contracts
Winning Construction Bid Contracts

It is on bidding numerous projects where most of the contractors get their job offers. These construction professionals have more likely approached the project bidding through offering the possible lower costs. However, the process of bidding becomes gradually complex and difficult that contractors have often wondered how they can ultimately and successfully win more construction bid contracts. The need to stay profitable in this competitive industry and environment is a goal that sometimes becomes a challenge too.

A guide is indicated below that is intended for contractors for them to be capable of winning more construction bids even with a few numbers of proposals. Including with the guide is an explanation of how the bidding works and how to effectively improve it.


What is Construction Bidding?

To be clear, a construction bid is a process of providing possible clients with a certain proposal to manage buildings. Subcontractors, on the other side, are also allowed to pitch in services they can offer to the contractors during this process. The two golden rules upon the creation of construction bids are – begin with exceedingly precise cost estimates and submit the poorly lowest bid of all participating and contending contractors.

The price has always been the major key consideration in construction bidding. For government construction projects, usually, the owner chooses the lowest bid. However, in some other jobs, the other factors and qualifications can be equivalently important than the settled price. Below are some activities associated with the construction tender process:

  • Bid Solicitation – termed as either a “request to tender” (RTT) or a “request for proposal” (RFP) and usually, the owners often seek bids and at the same time providing a set of materials with preferences, drawings, and other related documents.
  • Subcontracting – it is when the contractors take bids from the subs for some specialized works. Varying from the method of the project, this situation might only occur after the contractor wins the bid.
  • Bid Submission – the bids should be finalized and submit on the scheduled deadline.
  • Bid Selection – a thorough review will be done by the owner and chooses the winner
  • Formation of contract – this phase settles and completes the terms and conditions as well as lays the legal groundwork in the project.
  • Delivery of the project – this is where the construction begins.


Ultimate Goal: Winning Construction Bids!

1. Start bidding and know further the competition

Confidently stepping in before the competition is an easy and effective way to win more bids. Always keep an observant eye on the bidding marketplaces in order to create an initial profile and at the same time to preemptively look for jobs. Below are some sites that could lead you to more information.

  • BidPlanroom – the majority of construction experts ideally use this site to join the bidder’s list. The good thing about this site is free, and contractors can promote their respective company and post projects at the same time.
  • BidClerk – this site is actively providing details about posted projects and construction leads.
  • iSqFt – this is a networking tool that is purposely designed to help the construction experts to manage construction bids and at the same time trade contractors to find them

Take note also about the preparation. Upon the preparation in bidding a particular project, it is important to further know the main criteria of your competitors. In this way, you can prepare better and aware of what you can bring to the main table. Convince the prospects that you offer more than just the price. In other words, this is just a way of marketing your services and the things you are capable of providing.

In addition to that, if the construction job isn’t set for availability, it doesn’t mean that contractors must go immediately for it. What is more effective is to lessen the number of submitted proposals in order to enhance the quality of the bids.

  • Make sure to bid on jobs that are the best fit and suitable for your niche. (residential, commercial, industrial).
  • Never bid if you found out that a certain project requires to have many specialties.
  • Better concentrate on projects that will essentially result in repeat businesses.


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2. Building trust together with the decision-makers

It is important to identify who are the other professionals involved in the decision-making process. Often times, contractors often waste their time by deciding and contemplating together with non-decision makers. First and foremost, identify who are those people in charge to manage projects.

Nowadays, there is more than one person who will decide. A better way to start with this is by acquiring knowledge about the prospect’s directorial structure. The building also relationships and trust with the prospects is also a must so that these prospects can see perceive the contractors as a human and not just a mere working contractor.


3. Breaking down your bid 

Upon the submission of a bid, the project owners and their expectations should be determined. Take more of the focus on the design details because this is where most project owners are more detailed about.

  1. Apply a helpful tactic. Simply involves communication with the other professionals who have previous working experience with the project owners. Through this way, you can initially discover the project owner’s preferences when it comes to a project.
  2. Break down the cost. By doing so, you will be highlighting your thought process in many areas such as the material costs as well as the equipment allocation. This is simply about providing the right sense of perspective to potential clients.
  3. Present the ROI. The prospects have every right to take a look and see the ROI (Return on Investment) that they will soon obtain while working together with you. Essentially, you need to back up all details and information using hard data.


3. Application of Technology 

The right and best technology is definitely a huge help in controlling the construction costs as well as increasing the team’s collaboration and efficiency whenever executing common tasks such as the following:

  • Gathering and saving of data
  • Tracking of crew’s tasks and hours of labors
  • Listing of all materials, equipment, and other resources
  • Conference meetings
  • Phone calls

The deployment of mobile devices and tablets is continuous, even up to this day. The contractors upon using mobile devices with the use of best construction management software such as Pro Crew Schedule, common daily tasks are easy to be managed, improving the overall construction project management. A mobile app is available to download anytime. Get now a live demo.

Contractors often have assumptions after losing a bid to a particular competitor because of low costs. These instances weren’t always the case because team productivity is basically one of the major factors when it comes to the bidding process. If team productivity is boosted, contractors most likely reduce costs that allow more competitive bids to deliver accordingly.

A few easy tips are listed below aiming to boost team productivity:

  • Hire a distributor partner for well-organized resources management services
  • Adopting construction crew management software
  • Improve safety training


4. Showcasing your Qualifications

The most exciting part is showing off your qualifications. Contractors should have the attitude in terms of negotiating and convincing. It is necessary to be expressively candid in explaining why your crew is the best fit for the job! In any other way, reputation is at times what all it takes to elevate the scale. It is also a great way to focus more on what is important, and that is the – promotion of value rather than price. This serves as a competitive advantage over other construction companies.

Highlighting your qualifications is also about differentiating your brand from the others. That is why as much as you can as a contractor, go market your crew, not just an expert professional but also a responsive and participative member of the team. You shouldn’t just focus only on managing and task tracking but this area as well. Showcase what you and your crew can offer whether its quality control, impressive customer service, and other services.


Bidding Accuracy

Accurate bidding requires you to precisely estimate how buildings will cost upon the construction of it in terms of materials and labor. There are many underlying factors that impact the project’s success, and bi accuracy is definitely the most crucial among all.

If you have the knowledge and skills already in the precise estimation, formulating a bid that is competitive when it comes to lowest-bid tenders is easy. Accurate bidding begins in identifying both direct and indirect costs and later determines your profit.

  • Lastly, if you fully know your baseline, you can begin to work in improving your ratio:
  • Promotion for your business with the help of marketing effort concentrating on your business strengths as well as your previous accomplishments
  • Exert extra effort into your estimates. Understand the specifications and plans entirely
  • Bidding instructions must be strictly followed
  • Make an impression in your bid to make it unforgettable. Provide in-depth information and include outstanding services, expertise, certifications, renderings, and even testimonials.


Key Takeaways

The competitiveness in the construction bidding environment has become prevalent and more complex. That is why it is crucial to master the complexities of construction bidding in order to bring projects on the budget and on time and eventually win more contract bids. Utilizing a tool such as construction project management software will help everyone involved to collaborate and be productive that is crucial in the business. But the really major key in the business in winning more bids is having the capability to precisely estimate all required costs upon completing the job while at the same time factoring in an equitable profit for the company.



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