Article
How to Win a Bid
Increase your odds of landing successful bids on the construction jobs you want.
If only There Was a Go-To Template or Formula You Could Follow in Order to Guarantee Success in The Bidding Process.
There is no magical prescription that works for everyone. Each owner values different features of a tender. Some are all about price (although this is not very uncommon) while others value time and prioritise the quickness of job completion. Some value appearance and presentation and some select a winning tender based on your connections with subcontractors. We鈥檝e put together some guidelines for you to keep in mind when composing your tender in order to increase your chances of聽winning the jobs you want.
Chapter 1
Know What You Need Before Asking What They Want
Don鈥檛 go tendering crazy. Be smart about it.
Find out what types of tenders you would like to win before you even start looking at tendering on any actual jobs.
Know your ideal tenders, less-than-ideal yet still successful tenders and tenders you should avoid so you can spot a winning or losing tender when you see one.
Too often, contractors tender on construction jobs they are unprepared for. Think about tendering as a war鈥攁n already common analogy. You wouldn鈥檛 attack an enemy you were outnumbered by, so don鈥檛 tender on jobs outside your ability. Don鈥檛 sign your crew up for a battle they are doomed to fail. Send them into the right battle equipped with the proper skills and weaponry to come out victorious. Only tender on jobs with expectations that can be successfully met by your company, or better yet, exceeded.听
Ask yourself the following questions in order to decipher whether or not a tender is right for you:
How much聽profit聽do I need to make?聽
Do I have the ability to obtain the necessary labour, materials, equipment, licences and insurance to complete this work?聽
What resources do I need, including materials and labour?聽
How much will these resources cost?聽
How soon can I supply these resources?聽
What is my timeframe for job completion?聽
How flexible is my聽construction programme? Can I accommodate any delays?聽
How much of this work will be self-performing?聽
How much will need to be subcontracted? How much will this cost?
Chapter 2
Know Your Audiences
As a contractor, your clients can include homeowners, property owners, another contractor who is subcontracting work to you or聽public聽and government agencies.听
Whether you deal with some or all of these types of clients, you need to conduct market research on each and develop micro strategies to appeal to each based on their personal interests, pain points and needs.
Chapter 3
Do Your Homework
Once you decide to tender on a job, do your research.
Gain knowledge about your prospects鈥斅specifically what they are looking for聽and what they are willing to pay to have it done.
Find out exactly what they want and align your tender to match their needs.
George Hedley, the best selling author of Get Your 海角大神 to Work, uses a great fishing analogy to explain this concept. He states,聽鈥淭ender like you fish鈥 When you go fishing and they aren鈥檛 biting, what do you do? You try different fishing techniques, change your bait, or move on to another fishing hole. This is not what contractors typically do when they don鈥檛 land enough construction contracts. Most contractors just keep tendering to the same customers over and over, using the same bait and聽proposal strategies聽as they鈥檝e always used. Contractors often think if they tender enough jobs to the same companies or entities, the same way, eventually they鈥檒l get their share. This effort won鈥檛 get you the positive results you want. Like in fishing, you must change your estimating and tendering strategies to get the big ones to bite more often. You have to use the right tackle, different techniques and tastier bait to get the fish to think your bait is better than your competition, or look for better fishing holes.鈥
Chapter 4
Follow Directions
Do what is asked of you. Follow instructions鈥攅xactly.
Don鈥檛 skip details, roundabout questions or paraphrase.听
You may think that if you don鈥檛 include something, they can鈥檛 hold you to it. But not doing so could make you appear sloppy or as if you are trying to sneak something by. If you cannot follow directions in tender documents, the owner will question your ability to perform on the job.听
Answer the questions they ask, not questions you think they might ask. If the plans don鈥檛 call for it, don鈥檛 add it. By listing out all of your qualifications, you will make things harder, not easier鈥攄ecreasing your chances of winning the tender. Any extra effort on behalf of the employer to decipher your meanings leaves a lasting negative impression.听
Make sure your tender contains the following in order to guarantee effortlessness on behalf of the owner.
Chapter 5
Set Yourself Apart
Find ways to differentiate yourself from your competition and demonstrate the value you can bring to your prospect聽better than your competition.听
Give your client distinctive reasons to choose you instead of your competition by providing them with benefits they won鈥檛 find anywhere else.听
If you don鈥檛 offer anything beyond what your competition offers, you can only sell your price鈥攚hich is a war you don鈥檛 want to start.听
First and foremost, give them what they want鈥攏ot accessory features and bonuses, but things they directly ask for:
Offer answers their problems with complete solutions rather than partial, temporary remedies + Reduce their risk聽
Offer guarantees聽
Provide superior customer service with personal face to face contact and prompt responses to client concerns
Chapter 6
Sell a Relationship, NOT the Tender
Go beyond the details and paperwork and make the effort to engage with your potential client face to face.
Make your goal to sell a聽long-term relationship, not a tender.听
The importance of establishing a personal relationship with your potential client cannot be stressed enough. Try to meet in-person as soon and as much as possible. But if you can鈥檛 arrange personal discussions, settle for phone meetings for the time being. Use email as a last resort of communication with a potential client. SO REMEMBER鈥β
Know What You Need Before Asking What They Want聽
Know Your Audiences聽
Do Your Homework聽
Follow Directions聽
Set Yourself Apart聽