In an attempt to win more work, many construction firms cast a wide net hoping to win as many projects as the can. However, in the process, firms may only be increasing their overhead costs when they invest their resources in bids they have a high chance of losing. Our Sarasota construction lawyers understand that firms have to bid smart by focusing on the types of jobs that are most profitable to their business in order to get the projects they really want. This article will focus on key areas that can help contractors win more bids. To learn more, read part two.
Know Your Bid-Hit Ratio
Having an understanding of your bid-hit ratio can help you be more successful. A bid-hit ratio is a simple calculation that shows how many bids you’ve won out of all the bids you have pursued. It can help you prove your success not only to yourself but to a potential client because it shows your rate of success over time. Your history will show that you have won one job out of every five jobs or one job out of every 15 jobs.
You must embrace technology if you want to track and improve your bid-hit ratio and bid strategy. There is software available to help you increase the speed and accuracy of your estimates. Estimating software can help standardize your estimating best practices, decrease errors, and improve your bid analysis.
Offering the customer more will give you an advantage over your competition. There are other factors besides pricing that could increase your chance of winning a bid. Customers already expect a good price and high-quality service, but you may have a unique area of expertise, special certifications, or award recognition that may set you apart from the competition which may compel them to select your bid.
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.