A construction tender or a construction bidding is a process of submitting a proposal to undertake a certain construction project. In a lot of cases, the organization or individual in need of construction work will start a bid and then have several contractors make their offers. The one with the offer that seems the most suitable will then get selected and the company behind it will be in charge of the project. For you as a contractor, the ability to win in such conditions and against such competition may be pivotal in your efforts to provide enough work for your enterprise. Here are five tips that will improve your chance to win.
1.Make sure that you can handle it
The first thing you need to think about is your reputation. Instead of focusing too much on how to get the job, try asking yourself the question – what happens if we get the contract? Will you be able to complete it in time? Will it be quality enough? Can you make a profit by delivering on all that’s promised? Keep in mind that accepting work that you know you can’t complete may just be the simple easiest way to ruin your reputation and ensure that you’re never hired again.
2.Crunch some numbers
The next issue that you need to address is the cost-effectiveness of your offer. During the tender, you’ll have to come up with a number. More often than not, it’s this number that will be a key factor in determining whether you get the job or the contract goes to someone else. What you need to do is make a calculation of the offer that will keep you competitive and profitable at the same time. Now, in order to be more competitive, you can try to lower the figure but you need to be quite careful when doing this, which brings us to our next point…
3.The lowest prices aren’t a ticket for success
Keep in mind that the lowest prices aren’t a ticket for success. Just think about it this way – if you were to undergo surgery, would you feel comfortable putting your life in hands of the cheapest surgeon out there? Probably not! The same thing goes with parties who are starting the bid. Also, you’re in this industry in order to make money, not to get more work. Why would you accept to do a project at a loss or for the minimal profit margin? You should also bear in mind that the work you do may have an impact on your reputation, so focus on that instead.
4.Have everything planned out
Previously, we’ve talked about knowing your capacities (what can you do and in which time-span), as well as knowing what price you can offer in order to remain profitable. This is why you need to have everything planned out and do your research on time. First of all, you need to have a reliable supplier on your side and have the quantities of materials that would be needed. You also need to have the list of all the equipment that you have, as well as that which you’ll have to hire. Having contact with specialized companies like Skip Bin Hire can make all of this so much easier.
5.Meet potential client face-to-face
Networking is pivotal and meeting your prospect face to face might increase your odds during the tender. Keep in mind that they won’t hire you just because they like you personally, seeing as how the project in question might be too large for such a subjective and impulsive decision. However, asking the right questions about the project may speak volumes about your skill and professionalism. Other than this, it may help you prepare better for the tender itself. As a businessman, you owe yourself to use every opportunity that you get to ensure your success.
The very last thing you need to understand is that the first requirement of winning a tender is to submit an offer, to begin with. This means that you need to be prepared in advance and quick to respond to the newly-arisen change of situation. Also, even if you don’t make it, ask for feedback in order to be better prepared the next time around.