How to win big on your next construction bid proposal.

Looking to perfect your construction bid proposal? Perhaps you want to know more about how to win construction contracts and what’s involved in the bidding process. At Hudson Succeed, we strive to support and educate all businesses about bidding. After all, there are a lot of benefits for businesses when they bid for work!

In this blog, we will address ways of crafting a winning proposal.

Let’s get into it…

1.  Take your time

Don’t waste your efforts crafting the perfect construction bid proposal for the wrong job. Because no matter what business or industry you’re involved in, everything boils down to the same endgame. Profit. It’s in your best interest not to overcommit to a bid if you find the costs heavily outweigh revenue. You’re not in too deep to pry yourself off the hook.

If you’ve run the numbers and everything indicates you’ll loom in the negative. Back away. And, as the saying goes, “on to the next one.”

You should be looking for the type of bid that offers profitability in that ‘just right’ Goldilocks zone. While it’s tempting to quickly jump at the opportunity of signing a major contract – it’s crucial to maintain realistic expectations of what scope your company can handle. Then again, a contract too small might not be worthwhile for your pockets since laborers will probably have a lot of free time.

2.  Face to face time

It’s common for construction sites to serve as pre-bid meeting grounds. Buyers often offer site visits and we would always recommend attending. Make the most of these rendez-vous’s by taking the time to make every little detail clear. Nothing in haze, especially not before putting together your construction bid proposal. While you’re walking around the site with your would-be business partners, pick their brains about the space. Everything from unique location conditions to limited access. Consider additional costs on equipment, transportation, labor, and storage of materials.

That’s why, despite your busy schedule, it’s crucial to not skip out on this meeting. It’s likely the last chance you’ll get for clarification. Any missed detail has the potential to be a costly surprise.

3.  Whip out the tape measure

Information isn’t just power in business. It’s profit. Be meticulous with reviewing specs and plans. This will help assure that your take-offs and measurements are on point. Numbers that are off (even slightly so) will result in miscalculated for materials and labor. Which, by consequence, will affect the accuracy of your overall costs. Be careful when using electronic documents as adjusting the size to print these can throw off scaling. Bring an architect to guide you through this process and avoid any oversights.

4.  Say hello to tech

The value of having the right team can’t be overstated enough. But who said part of that team can’t be of the synthetic persuasion? Welcome to the wonderful world of technology, bringing in a slew of gadgets that slash costs and boost productivity.

After all, the faster projects are finished, the more of them you can take on. The more revenue and… well, you see where this is going. If you aren’t completely aware of what techno-helpers are out there, here are a few useful options.

• Software for construction productivity.
• Build off-site with the use of prefabricated materials.
• Mobile apps for task management and communication.

5.  Vetting a subcontractor

Yet again, this part of the process involves finding the right balance. Or compromise – however you want to look at it. Sure, it’s cheaper to shop around for the lowest price on the market. But you risk paying for dodgy work. On the other hand, subcontractors that are too pricey could easily land outside the budget of your construction bid proposal.

So how do you find that perfect middle ground?

One word answer: pre-qualification. Ideally, you should get this for up to three subcontractors per project-relevant trade. Then compare and contrast not only pricing, but also the quality of their work history. Communication is key. Clarify the project scope, so all parties are on the same page before signing on the dotted line. Any hiccup in due diligence could lighten your pockets down the line.

6.  How much for the job?

It’s difficult to predict for every element in a construction project, but make your best effort when estimating costs. Barring any uncontrollable or unpredictable elements, factor that ETC (Estimated Time of Completion) times into your labourer’s hourly wage rates. Also, consider how effective and productive said laborers are.

Less experienced workers are not exactly known for their speed or efficiency. Sure, they won’t cost you as much per hour – but that’s offset by the amount of time the project will take to complete. While seasoned veterans can get it done at the snap of a finger, but at a much higher rate. Wage rates – as mandated by the Davis-Bacon Act- will also vary depending on the project location and type of construction. Overtime drives these wages to double the price. So, make sure to factor that in when tallying up labor costs.

7.  Unfinished paperwork

You’d be surprised how little details like this can cost a company a major opportunity. Eliminate every reason they might have to say no, and you’ll easily be in the running. Confirm that all necessary documents have been properly filled out and signed before sending them off. Some of these include an addenda receipt and bid bonds.

Checklists are a tried-and-true old-school method to sorting through important documentation. Double, triple check that everything is in order. You really can’t be too careful. And if you don’t trust your eyes, bring another set along to review it for you.

Summary

Putting together a fail-proof construction bid proposal isn’t exactly a cakewalk. It’s a rigorous process, involving a series of meticulous steps. But if you line everything up just right, fortune favors your next effort.

For a quick refresher, let’s go over some of the ways you can put yourself in a winning position.

1. Don’t commit too soon – Put the pen down and step away from the contract. If you haven’t done enough research or preparation, it could be costing more than you’re making. So, take your time in finding a bid that suits your profit goals.

2. Attend the site visit – Patience in life and in this process is always a virtue. Swing over to the construction site, scanning for any factors that could create costly complications.

3. It’s all about dimensions – Make sure that the plans and measurements check out. Being off by a single digit has vast implications for your profit margins.

4. Upgrade your tech efforts – Enjoy the benefits of improved productivity and efficiency by integrating tech into your process.

5. Getting the ideal subcontractors – This boils down to finding a subcontractor that presents that perfect blend of quality and affordability.

6. Factor in wages – Hourly rates vary depending on the location and project.

7. Missing or unfilled documentation – Don’t give your competition an edge by turning in an incomplete proposal.

Looking for support with your next bid?

 

Sometimes you just don’t have the time, resources, or experience to formulate a winning response. Luckily for you, we provide three bid and RFP writing support services. Our Bid Writing Consultants have over 60 years of bid writing experience and an 87% success rate. We can help you see success with your next bid.

Our services

RFP Writing

Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our writers will break down the solicitation documents, allowing you to see what the bid and the contract involves. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority.

Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.

RFP Mentor

Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents.

Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.

Proposal Ready

Do you need help with preparing a bid proposal? Proposal Ready can help businesses that are new to bidding or those in need of rejuvenating their content.

Our Bid Consultants will create:

• Three company branded case studies
• Five company branded resumes for key personnel
• One company branded bid proposal credentials document that can be used to respond to future RFPs.

Find more helpful tips and advice in our blogs. We cover topics including:

• Working with RFP Writers
• Government bids
• Federal contract bids
• RFP cover letters
• Government RFPs
• Bid proposals
• Federal government RFPs
• RFP Consultants
• How technical Bid Writers can help your business
• State bids
• Government contract consultants
• And many more.