The construction business is very quirky in a lot of ways. Unfortunately, there are a lot of periods in which there is not a lot of work coming in. A downturn in the economy can lead to immediate slowdowns in how many projects start coming in. This is why a lot of small construction companies are very keen to get government contracts.
Many city, state, and federal work is budgeted years in advance and a bad economy is not going to see these jobs canceled. Roads still need to be paved, schools built, and developments planned. The construction companies that have successful bids will be the ones that suffer from fewer gaps between projects.
In this article, we will go over several ways to improve your bidding process so you can continue to grow your business no matter what the economy is like.
There are a lot of ways that construction businesses can improve by using software and the latest technology. For instance, specifically for bidding, there is public sector construction software that can do things from helping to maintain a transparent portal for politicians to see where public money is being spent to being able to manage bids on public projects.
The software can also improve efficiency within the projects that are in the process of being done. When your productivity is improved by having a more efficient system the jobs get done more quickly. This then leads to more work being done since you can move to the next project available. With a rigorous bidding management system and more availability, more projects will be done and more revenue generated.
When you have been putting out bids, there is a lot to learn going forward. This is true even if your bid to hit ratio is low and you aren’t getting many accepted bids. Take a look at what the process for the bid was like and see if there are areas for improvement.
It isn’t always the case that the competition that won the bid simply put in lower bids. There could be times when your bid is the lowest but a company was chosen that had submitted a higher bid. Pay close attention to what the winning bids did and what yours didn’t and often you will be able to implement those winning strategies in your upcoming bids.
Whether you are putting in bids for public jobs or commercial ones, there needs to be a clear ROI that they can expect from the work that you do. If you can itemize where all the costs are going to come from rather than just a lump sum of what it is going to cost then you will gain trust as the manager can clearly see how the money is going to be spent.
This allows them to understand what the return on the investment is going to be. A good example is if you itemize what the material is that will be used and how long it is meant to last, they can get an understanding of the long term cost of the project and where it will save them money.