Improving the Bidding Process: Why Your Bid-Hit Ratio Matters Part 2
Our Lakeland construction attorneys are very knowledgeable about the bid process. We know what it takes to win bids and this all begins with bid preparation, including how you approach your bid-hit ratio. In part one of our article, we discussed how to identify your bid-hit ratio and break it down into categories for analysis. In this part, we’ll discuss how to improve and measure the bid-hit ratio.
How to Improve Your Bid-Hit Ratio
In the bidding world, you win some and you lose some. But, in order to win more bids, track and focus on areas where bid lists are short and your odds are the highest. Also, know who you are competing against and get to know the job’s decision maker.
Measuring Your Success is a Must
Not only should you be tracking your bid-hit ratio, you should be tracking your past and present job costs. Some contractors may spend time and money to do so, but often make the mistake of abandoning the data over time. This does your future job estimates no justice. Tracking this information will ensure you can prepare more accurate estimates for your next bid. It’s also helpful to keep a log of the winning bids even if you’re not selected so you will know how to approach the owners and compete with competitors in subsequent bids.
A Great Bid-Hit Ratio Isn’t Enough
Although knowing your bid-hit ratio is valuable, it will not guarantee perfect success. For example, you could be winning bids that do not have enough profit built into them. This is why job profitability must also be analyzed after winning a bid. Unfortunately, bidding low erodes at profit margins. Understanding and analyzing bid risk, completing an accurate bid, and having the expertise and experience to complete the job can increase your chances of winning more bids and maximizing profit margins.
The bid process can be difficult at times. If you need assistance navigating this process, a Lakeland construction lawyer at Cotney Construction Law is available to assist with bid challenges, representation, and defense against protests.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.