If you’re from a construction firm that’s constantly trying to make a good impression to win contracts, the best way to improve your chances is to make sure that you can present a good bid for a potential client or customer. A bid is a business proposal for a builder or a contractor that could be used to gauge whether or not a firm deserves a contract or not.
Here’s how you bid on a construction job:
- Making a bid is all about knowing the costs and making sure that you can still make a tidy profit out of your already competitive offer. The key of course to have someone on your team who can effectively and accurately approximate the things that would be needed for the project. Have an architect and another contractor on board so that they could give their input on how much the project is going to cost.
- Look at the architectural plan of the building. Estimate how much raw materials and other equipment would be needed to complete the project. Look into the budget that is required to secure all the required elements of the project.
- Have a good relationship with wholesale construction supplies stores, equipment rental agencies and other firms that you might need to complete the construction job. Having exclusive contracts with them could certainly allow you to bargain for a really good rate that other firms cannot simply get. If you can get discounted prices for bricks, paint, nails, wood boards and other raw materials, it would be easier to get a very low basement bid. The rest of the price then would have to taken up by the other expenses like manpower.
- For man power, it would be best if you can have someone who can effectively approximate the number of people needed for a project. Having a matrix that would allow you to have an estimate of the man hours needed to complete a section of the project would be very advantageous.
- Collate all the amount of expenses and come up with the absolute price of the construction. Your bid will not be this amount since you have to make a good profit. Discuss this with your business partners.
- Present a well detailed and accurate bid of the project to your clients. Submit the official bid document before the deadline and if necessary, deliver a presentation with visual aids to help them understand your perspective and position even more.
The whole idea is to get your costs really low without sacrificing the quality of your work. Once you lose the trust and confidence of your client, it would be very hard to win it back even if you can give the most competitive and lowest bid of the entire project. Make sure that you deliver each project with the stamp of quality and the work ethic that would best represent what your firm stands for as a company.