Bid management is among the most prevalent obstacles faced by construction companies. The bid management process for building contracts is quite time-consuming. Additionally, it must be carefully done to avoid costly errors that might harm the credibility of the company.
The most difficult tasks include tabulating and comparing bids, collaborating with all parties, and blind budgeting. Fortunately, software like BidMatrix is designed to simplify and automate a number of these procedures to increase the likelihood of winning bids. BidMatrix also assists construction companies in monitoring bid history and project scope inclusions and exclusions to increase their chances of winning bids.
Have a look at the top 5 tips on how you can win more bids and make bid day a breeze.
1. Know Your Company’s Construction Capabilities
Knowing your company’s construction capabilities is one of the greatest strategies to win construction contract bids. You should not pursue construction work bids that do not align with these capabilities. Oftentimes, this is when you want a simple and efficient pre-development network that provides you with the most reliable database platform, including construction project-specific information in targeted places.
In the construction bidding sector, discovering and anticipating projects that match your company’s capabilities puts you on the verge of winning the bid. You must always prioritize learning more about the offer than the bid price, and by utilizing BidMatrix, your firm identifies and capitalizes on its strengths to win bids. Since BidMatrix is in the cloud, you can access it at any time and from any location.
2. Perform a Thorough Bid Package Analysis
One of the simplest ways to lose a construction bid is to question your bid research or continue to second-guess the information you already know to be true. You must have a reliable research approach in place. BidMatrix allows you to adjust your search requirements if you’re particularly interested in bidding on building contracts.
There are several examples in the construction industry of bidders who made mistakes despite having accurate and trustworthy information leading them in the correct direction but who did not trust or utilize it. If you have the information and expertise to know what your margins are and what your costs will be based on the bid package research and analysis, you need to believe your estimates even if there are many uncertainties.
Without BidMatrix, complicated construction bids arrive at the eleventh hour, leaving little time for important bid analysis. With BidMatrix bid day software, the extremely low path is chosen when each subcontractor’s bid is input, taking into consideration full, partial, and discounted bids. Instantaneous bid analysis of hundreds of routes is performed.
3. Provide Accurate Project Cost Estimates
The cost and availability of materials couldn’t be more volatile than they are in this COVID-19 era. By accounting for anticipated changes in the costs of labor, transportation, administration, and materials, among others, you must analyze every material cost for this project and construct your price estimate properly.
When negotiating in a volatile market, you must be aware of your own worth and everything that your construction firm offers. Do not become obsessed with comparing your offer price to that of another firm. Focus instead on the value you bring to the table through your skills and experience.
Use BidMatrix’s potent integrations to determine the cost and availability of supplies depending on market movements and effects. Integrations with market-leading estimating and invitation-to-bid tools facilitate the creation of bid packages. There are integrations with Sage Estimating, SmartBid, Microsoft Excel, and even Trimble WinEst for a comprehensive set of estimating and analytical software tools.
4. Identify and Manage Project Inclusions and Exclusions
Determine the essential elements that will be part of the project’s scope. In addition, offer a collection of top-level scope elements that should not be included in the project’s scope.
As for scope exclusions, they enable you to specify the project’s scope boundaries, including any high-level things that will be clearly omitted from the checklist of deliverables to prevent future disputes.
Customize your inclusions and exclusions in BidMatrix as well as your exposure points and your risk exposure. Improve your win rate and your profit margin will increase quickly.
5. Plan Your Construction Collaborations Early
Many successful construction bids fail to materialize during the actual building phase. Numerous construction businesses believe they can engage this or that individual when the time comes. Some believe that cost tracking is unnecessary for conducting an activity efficiently.
When you receive the proposal for your construction job, you must carefully plan out everything you’ll need to get started. BidMatrix was designed so that you, as a prime contractor or contracting officer, may have many subcontractors input bids for your subcontractor analysis, possibly from various geographic locations. The best thing is that you can access BidMatrix in your online browser for any sort of project, whenever and wherever you have a data connection.
Creating a Bid Winning Strategy
To submit a winning bid on a building project, you must always possess shrewdness, experience, skill, and knowledge. It’s imperative to leverage software and other resources to plan your building project bid in order to make an acceptable profit. But you must keep in mind that your profit margin cannot be so large that you lose the building contract to a business that was able to provide proportionate estimates that were neither too high nor too low.
As the management of a construction firm, the best thing you can do is to understand that your strategy includes not just clever bidding but also scaling up a construction venture, operating the building project job, and scaling down a project. Bidding for construction tasks is the initial step in ensuring the success of a construction project for your firm.
In order to win bids, you must operate a cost-effective operation. By ensuring that you can track your expenses and profit margins, you will know what to do for the next and subsequent building projects. Reach out to Bangert, Inc. if you are interested in learning how to win more bids with BidMatrix!