Hard work on a construction project can begin when you first win the bid. At this stage, you’re not just managing construction but selling your services. This is when you convince the client to choose you over other firms. It’s not easy. On average, construction firms bid four to 10 times before winning a project. That means a lot of time is spent on estimates and bids, often without success. But don’t get discouraged; and there are simple strategies to help you improve your bid success rate and strengthen your business.

Making a few simple changes to your bid proposals can help you win more construction bids. Contractors often bid many times before winning a project. Even a small increase in your success rate can lead to a few extra projects each year, boosting your profits. This guide will help you create a winning bid proposal that clients can’t resist.

By using these strategies in the next three months, construction companies can win one extra project each quarter.

Submit Your Bid Early for Maximum Impact

Getting your bid in early can have a big impact on your chances of winning. Many construction managers overlook this, thinking it doesn’t affect their ability to complete the project on time. While it’s true that the timing doesn’t impact the work itself, human nature plays a role. The first bid usually gets the most attention and is more likely to stick in the client’s mind. When dozens of bids come in, the owner or general contractor is less likely to focus on the late ones. By then, they might already be leaning toward another proposal, making it hard for your bid to stand out. When a client first posts a job, they have questions on their mind:

• Will anyone offer a bid that makes financial sense?
• How will they handle the challenging parts of the project?
• Can they find a cheaper alternative to the expensive materials I’m considering?
• The client is eager to see the first bids to get some answers, giving you a chance to make a strong first impression before more bids come in.

Thorough Research and Site Visits

To create the best bid, you need to understand your client. Know what they want to achieve with the project and what they’re looking for in a contractor. This will help you make a bid that grabs their attention. We have a lot of information available now that wasn’t around before. Many construction firms don’t use this information, so you can gain an advantage. For example, you can find public records about your client’s past projects, how they went, and how they awarded contracts. Check out permits and other public records from previous projects.

Focus on Value, Not Just Price

Construction managers often feel pressured to submit the lowest bid. Many think that owners and contractors only care about getting the best deal. But that’s not always true. People are willing to pay more for value in any industry, including construction. You need to clearly show what extra value your client gets for the higher price. Winning a bid isn’t just about being the cheapest. Competing on price alone means you might not make a profit. Instead, make a strong case for the value you offer. This approach can give you an edge and help you earn more per project.

What are the key selling points to highlight? Experience and a strong reputation are important. Clients might choose a cheaper, less-known contractor, but they’ll worry about potential issues and mistakes. Excellent customer service is another important point. Clients appreciate knowing that you’ll address any issues, even after the project is complete. Financial stability is also a major concern. Clients who’ve had problems with failing firms will value a company that shows it’s financially secure.

Enhance Bid Quality with Construction Estimating Software

The quality of your construction bid depends on how organized you are and how accurate your numbers are. Construction estimating software helps you estimate projects faster and more accurately. It also shows if a project is profitable enough to bid on. If you’re still using pen and paper, switching to software can greatly improve your bidding process. Here’s how:

• It does the calculations for you, saving you time.
• It keeps all your documents in one place for easy access.
• It helps you compile data for more accurate estimates.

Even if you use software now, consider exploring other options if your current one has limitations.

Optimize Operations: Track Costs and Improve Profit Margins

Many construction managers assume they lost a bid because competitors underbid them. Don’t think that way. Instead, review your own operations.

To win bids, you need to run a productive and cost-effective operation. Many firms don’t track their costs or know their profit margins. By doing this, you can gain an edge over competitors.

Understanding your costs and profits helps you find areas for improvement. You can lower labor costs, increase productivity, and become a more attractive option for clients.

Summary

If you want to stop winning just an average number of bids and start thriving, you need to act now. Follow these simple steps to quickly improve how you attract prospective clients and stand out in this competitive industry.