Competitive bidding is a standard routine for contractors who work with larger organizations, like government agencies, educational facilities and industrial clients. Since multiple contractors are often interested in a big budget project, competition can be fierce among those trying to get the contract.
As many experienced contractors already know, you can’t just bid for every job that fits your company’s service offering. There are several key considerations to take into account before you dedicate company resources towards creating a detailed proposal for the project.
1. Assess Your Chance of Getting the Contract
Developing an accurate bid for a project requires both time and money, so it is not an investment to be made lightly. Firms that don’t carefully examine their competition as well as the preferred qualifications of the buyer can waste thousands of dollars on proposals that have almost no chance of success. That’s why you must pick and choose the projects that you bid on based on how likely you are to actually win the bid.
If there are already dozens of other companies bidding on the job, your chances of winning are slim at best. You should also have a clear idea of what types of projects are ideal for your company and how you can leverage specialized services for the project at hand. “Focus bidding efforts on projects that match your unique offering,” said WorkForBids.com.
2. Balance Available Resources and Current Commitments
Don’t bite of more than you can chew. While this may seem like a rookie mistake, it actually happens to contractors on regular basis. Before you decide to invest time and money into creating an bid for the project, you should make a cursory evaluation to ensure you have the manpower and resources to commit to the effort. Focus on providing quality work for every project you bid on. This reinforces your reputation as a professional contractor who actually cares about doing a good job.
3. Research the Client Carefully
Just as marketers study the consuming public to find the best ways to sell products to them, contractors must understand their prospective clients when creating a bid. Do your homework and figure out what the organization’s priorities and pain points are at the moment. Your bid should show them that you understand their situation and have a firm grasp on solutions that fit their expectations. If possible, talk to other contractors who have worked with the organization in the past to make sure they are a suitable client.
4. Follow Instructions on Bidding Process
Carefully read all of the instructional material regarding the client’s bidding process before you begin. For example, the US Office of Management and Budget describes the best practices for submitting a bid for a federal government project. Many other large organizations, like NC State University, also make their bidding rules available for public examination. Understanding the clients expectations is crucial. Bidders who do not follow the rules may have their proposal returned for revision or removed from consideration entirely, which destroys your chances of getting the job.
5. Visit the Work Site
Even if the client has carefully described the job site and details of the project through written material, contractors should always examine the location themselves before bidding. This helps you figure out the logistics that would be required to complete the job as well as other complications that warrant an increase in the bid price. Landing a project only to find that the work will be much more complicated than you thought can turn a lucrative job into a profitless nightmare.
