Ask yourself, are your construction bids being won? Are you winning enough bids? The first inquiry that might lead you to answer the previous ones is: “what are we doing wrong?” You have the expertise, the proper team in place, and the determination to get the task done efficiently on the initial attempt. However, you will not obtain as many bids as you want if your building plans fall short or miss the target. Evaluating the bidding and proposal process can help you improve your strategy and increase your chances of winning the best projects and clients.
Now let’s bring to your attention some mistakes you might be making in your bidding process. As a result, remembering these failing techniques can guide you in developing a successful proposal plan for future bids.
1) Submitting without review.
Errors and sloppiness in a construction proposal usually signal something more serious: either your offer was hurried, or the quality of your job will fall short of expectations. Before you press submit, make sure it’s been reviewed by a few others. It’s also crucial to remember that while a well-written proposal is necessary, double-checking the price estimation is equally critical since a tiny error might result in a significant overbidding or underbidding. An incorrect construction offer might reduce your profit margins or perhaps exclude you from the competition entirely.
2) Not utilizing technology in your favor.
The correct tools and equipment are critical to a project’s success. In your proposal or interview, you may declare that you will be employing or have utilized digital technologies on past projects—but are they the proper ones? An owner may have used specific software and technology tools in previous projects and is seeking them again. Do your study and stay up to speed on the newest industry advancements so you can demonstrate their benefit in your proposal.
3) Unoriginality.
Your potential customer will notice if your proposal seems like it was copied and pasted from a straight form. Make sure to tailor and personalize the proposal if the project is worth your effort. Demonstrate how your brand and services will set you apart from your competition and entice people to learn more about you.
4) Going beyond your capabilities.
If you have minimal expertise, you should avoid bidding on projects where you are more likely to make mistakes throughout the construction bid process and even the construction phase if you win the job.
5) Not submitting on time.
When placing a bid, every second counts. Why should a customer trust you to stick to a year-long plan with financial ramifications if you can’t stick to a modest deadline right away? So before submitting your construction proposal, give yourself plenty of time to traverse potentially time-consuming and sluggish bidding procedures.
6) Ignoring potential risks.
Once the possible risks have been discovered, you must study and assess each one separately to be effectively managed and minimized if and when they arise. Consider the likelihood of the indicated risk and the potential impact on the project. A low-probability risk with a low impact may be simple to manage. Still, a high-probability risk with a significant impact that you can’t successfully manage might be disastrous for the project’s profitability.
7) Not paying attention to RFP.
You would be in dire straits if you didn’t properly read the RFP. The RFP usually provides highly detailed information, so be sure to follow the guidelines to the letter. Do not depart from them, and follow any submission criteria regarding page count and specifications.
8) Not reviewing all documents.
A single missing part or document might disqualify you right away. Make sure you fill out all of the required fields. Before submitting your proposal and check enough times.
9) Not asserting your qualifications.
Many organizations compose efficient bids but neglect to uphold them with evidence. Continuously make sure to incorporate past projects when submitting offers and recommendations. Your history of previous projects is an excellent presentation of your success and qualifications.
10) Misinterpreting the scope of work.
One of the most common causes for losing construction bids is a lack of understanding of the scope of work. Unfortunately, suppose you don’t completely comprehend the scope of work specified in the RFP. In that case, you’ll have difficulty determining the appropriate tasks or timeframes, and you’ll have little chance of putting together a successful construction proposal. Several inquires may rise, which you’re free to share as long as you’re still away from submission time.
11) Over/under-estimating the schedule or cost.
To obtain a job, contractors sometimes cut too much money off their bid pricing or too many days off a project timeframe; neither method is acceptable. Contractors who use this method may assume that they can make up the difference through change orders, claiming additional charges for delays, increased material pricing, or scope modifications, but this is a hazardous technique that can lead to client distrust. Not to mention the possibility that no modification orders may be available, leaving the contractor with an almost definite loss.
12) Rushed bids.
It takes time to prepare a solid competitive bid proposal. If you try to rush up the process of preparing a bid, there might be a high potential for errors. You’ll need enough time to study and comprehend the designs and scope of work, as well as collect and assess subcontractor bids. The familiarity of the project you’re working on doesn’t justify the negligence of effort or allow the concept of just putting together a bid without contemplating the task thoroughly. You should not attempt to assess and construct a valid offer if you do not have the time to do so.
13) Neglecting the site visit.
When putting out a bid proposal, you want to have as much information as possible to put together a competitive offer, and refusing to attend a Prebid meeting or a site visit will put you at a significant disadvantage. If you are given a contract, not having a clear grasp of the existing site circumstances might cause complications later. There may be unique site characteristics, such as limited accessibility or location, which would result in higher expenses for transportation, equipment, and personnel. If you fail to visit the site, you will be uninformed of these constraints, and those additional expenditures must be considered in your proposal, which will reduce your profit if you win the contract.
14) Bidding beyond your capabilities.
It’s a simple error to make, but it may cost you time and money. It’s tempting to take the most prominent contract you can find. First, however, you need to ask yourself: Do you have a sufficient number of employees? Do you possess adequate knowledge and experience? Is it possible to fit the new job into your current schedule? You’re not compliant if you don’t fulfill the standards. Therefore, it’s crucial to examine if you can do the job. You may not want to continue if you can’t safely accommodate the new task. Bid for contracts worth 1/3 of your yearly turnover as a general guideline.
15) Misjudgement.
Judgment errors include underestimating the quantity of labor or supplies required for work or misinterpreting project parameters. If you make a mistake and don’t notice it until after the bid is opened, you have very little recourse at this point. You will most likely be unable to retract your bid at this stage owing to a mistake in judgment without incurring some penalty. In addition, if you are the lowest bidder, you will almost certainly lose your bid bond and may be compelled to pay the difference between your incorrect price and the next lowest bidder’s.
It’s not easy to put up a construction bid proposal. A competitive and winning bid proposal takes a significant amount of effort and meticulous attention to detail. If you’re interested in efficiently completing your bidding process, contact us to assist one of our engineers if you’re interested in our services or additional consultations.
