You have a great team with the proper skill set, quality materials, and a good reputation. So why are you struggling to land construction contracts?
Contracts fuel construction businesses–and a lot of hard work goes on behind the scenes to secure those bids. It’s more complex than just putting the best price on the table. If your construction bids are inconsistent, you won’t win as much work as you’d like.
Find out where you can improve your chances. Here are five tips for winning and closing more construction project bids.
Understand the Client’s Needs and Expectations
Before you start your bid, make sure you clearly understand what the client wants and expects from the project. There’s nothing more frustrating than losing out on a bid over a small detail that you could have quickly delivered but overlooked in the initial brief. Incorporating elements of the personal selling process helps you gather all the necessary information.
Don’t just rely on the project specification to give you all the information you need; you should also:
Do Your Research
Do some homework and check out the client’s past projects to get helpful clues on their preferences around style, quality, expectations, and the typical project scope.
Look into the clients themselves, where they stand in their industry, and any significant competitors and trends within their industry that you can align your proposal with.
For example, your client needs to meet specific industry-specific certifications or regulations, there could be a particular design theme consistent with their projects, or they have materials they prefer using.
Ask Questions
It can be very beneficial to call the client and discuss the project details. Doing so demonstrates your dedication to the proposal and allows you to clarify any uncertainties instead of making assumptions.
Speak directly with the client to understand any technical, design, or content specifications so your final tender meets their exact needs and manages expectations.
Speak to them about their underlying motivations and vision driving the project so you can deliver something that aligns with their values.
Tailor Your Proposal
Customize your bid to demonstrate your understanding of the client’s requirements. Show that you are well equipped to meet their needs and give them confidence that you understand their goals.
Within your proposal, highlight how your solutions directly address the client’s unique challenges and show off any relevant past work to demonstrate your expertise in these areas. Provide a detailed execution plan with clear milestones and deliverables so the client knows exactly what they can expect.
Know Your Costs
Getting your costs right could be the factor that makes or breaks your bid. Underestimate what the job will cost you, and you could end up working at a loss. At the same time, pitching your costs too high will price you out of the competition. The next few sections explain how to avoid this.
Use Reliable Data
Look at what similar previous jobs cost you to get a good baseline. For instance, if some unexpected costs were involved that you didn’t predict at the time, you can account for these by building a contingency for this bid.
Don’t rely on old quotes or historical price data when costing a new job. Prices can change at any moment due to factors like supply chain problems, economic conditions, and seasonal demand, so make sure you’re using the latest and most accurate quotes.
Consider All Factors
It’s not only the cost of materials that has a significant influence on your final estimate. Factors such as labor and equipment purchase or hire can also make up a large portion of your expenses.
Factor in wage rates, including any benefits or overtime, and be realistic about your workforce’s expected productivity. If the job will require specialist machinery, consider whether renting or purchasing it will be more cost-effective and include additional running costs like maintenance and fuel.
Projects rarely go completely as planned, so make sure you also factor in a contingency for unexpected costs—for example, last-minute design changes from your client or delays due to unforeseen bad weather.
Get Quotes from Suppliers
Make sure you’re getting the most competitive prices by requesting quotes from multiple suppliers. You can then compare prices and terms to make sure you’re getting the best deal. Don’t take the first price you’re given either, especially if you’re ordering large volumes of materials; see if there is room for negotiation or discounts available.
At the same time, be wary of a deal that seems too good to be true. Going with the cheapest supplier could backfire if you get stung by delays or quality issues. So, check out the reliability and reputation of the suppliers you plan to work with.
Develop a Detailed and Professional Proposal
In business, perception is often reality. If your final bid is a few figures scribbled down, you won’t give your client the confidence that you are organized, professional, and capable of handling the project.
A well-prepared, detailed, and professional proposal will show that you’re competent and instill trust in your potential client, increasing your chances of winning the bid.
Here are three tips to help you do this:
Include an Overview and Detailed Breakdown
Begin with a brief proposal description, followed by a more detailed breakdown containing indicated costs, timelines, and milestones. Chalk out a realistic timeline for the project and critical points for the milestones. Also, make sure you outline any potential risks and mitigation strategies.
Show Experience and Success
Showcase related past expertise and successful projects as tangible proof of your ability and expertise. Include examples of similar projects that build credibility and confidence in potential clients of your capabilities.
Demonstrate Project Management Capabilities
It’s not all about the price. Clients want to know that you can get the job done. Emphasize your strong project management capabilities, including your project delivery method. Show exactly how you will plan, organize, and execute the project. If your client is considering multiple tenders for the job, putting this extra thought into your proposal can help your bid stand out and give you an edge.
Emphasize Quality and Value
The best value for the client doesn’t necessarily mean the lowest price. Instead, clients want to know they are getting the most value for their money. That could mean better quality, high service levels, or even factors beyond price that are important to them, like sustainable practices.
Highlighting Quality and Sustainability
The phrase “buy cheap, buy twice” often rings true in construction. After stressing the quality standards you follow:
- Explain how these will benefit the client.
- Follow this up by explaining any sustainable practice or material that can make your bid attractive to environmentally conscious clients.
- Suggest any savings—for example, value engineering—that could be accommodated in your bid without compromising the quality.
Providing Added Value
Adding value means providing more benefits without increasing the overall cost. Point out any additional services you can provide that make your bid more appealing, such as maintenance or post-construction support. Providing warranties or guarantees also goes a long way to reassuring clients of the quality of your work.
Stand Out from Competitors
Carry out market research to help you identify your closest competitors and what they offer. Analyze their strengths and weaknesses to find areas where you can outshine them. Then, highlight within your proposal what sets your company apart, be it your experience, quality, or innovation.
Follow Up
After fine-tuning your proposal, it’s time to send it to the client and await their response. While it might feel like there’s little you can do at this stage to influence their ultimate decision, some timely follow-ups can make all the difference.
Check-In
Follow up 24-48 hours after submitting your bid once the client has had time to review your proposal.
At this point, check in to make sure they received it and answer any immediate questions they may have. By following up promptly, you can ensure they’ve fully understood your proposal and clarify any details or concerns immediately. You can use business sales software to automate reminders for these follow-ups.
Status Updates
If you haven’t heard anything after a reasonable amount of time, such as 1–2 weeks, ask for an update on the decision-making process. It might be that the client has just been busy, is reconsidering the project’s scope, or the job has been delayed for some reason.
Keeping in touch shows that you are still interested in the work and keeps your bid on their minds when they make a decision.
Seek Feedback
Accept the decision gracefully if your bid isn’t chosen, and be bold and ask for feedback. Politely ask the client if there were any areas you could improve on and wish them well with the success of their project. This will leave you on good terms, open the door for other opportunities, and give you valuable insights to increase your chances of winning future bids.
Winning More Construction Projects
The construction industry is a competitive market, but with a good bidding strategy, you can ensure that you go after and land the best projects and clients. Winning and closing more construction project bids comes down to having a good strategy, paying attention to detail, and maintaining open communication with the client.
Remember, every bid is an opportunity to further sell your strengths and commitment to quality. Put the time into your proposal and differentiate yourself from the competition.
Lucas Rossi is a Growth Marketing Manager at Dealfront, the go-to platform for giving sales and marketing teams the data to close deals in Europe. Lucas plays a key role in refining Dealfront’s data-driven approach to decision-making, leading to better lead quality and sales results. Lucas’ approach has advanced Dealfront’s marketing position and put it at the forefront of growth marketing.