Bidding for construction projects is a tedious job and requires intensive reasoning and planning.
Most of the contractors or construction companies get their projects by bidding. And as an owner of one, you probably know the facts.
However, receiving a request for proposal (RFP) or simply because a prospective customer seems promising, does not mean that you’ll get the project.
It is one thing to bid on projects and another to get your bid accepted.
A lot goes into the grey areas between placing a bid and landing a project.
Don’t worry. We’ve got your back.
Bidding for construction projects is no different than negotiating a deal with a client.
Your client will put up their conditions, for instance, how soon they want the project to be complete. On the other hand, you should put up your conditions too, such as how much funds you’ll need, compensations and permits that client will be responsible for, and so on.
It is noteworthy that most RFPs will ask you to fulfill their conditions and make a bid accordingly. But, if you really wish to bag the deal, you should know that it’s not always possible to agree to client conditions.
Perhaps, you should not hesitate to change the rules of the game and define your rules additionally.
Of course, the most important factor for bidding is the cost of the project. In the end, the difference between the cost and how much you get paid will decide your profits.
When estimating the cost of the project you should include the cost of equipment, labor, material, and also taxes. Additionally, you should also consider the construction project insurance into your overall cost. And, don’t forget to maintain a buffer in the final cost and payments.
Keeping your cost estimates as extensively detailed as possible should help you make better bids. And, of course, ensure your bids get accepted too.
When drafting your proposal make sure you include all the right questions and details of how you’ll be completing the project.
For example, you should try to include the quality and quantity of material you’ll be using, who’ll be handling the design part, how you’ll ensure the project is completed on time, and so on.
Although these details may seem obvious, mentioning them upfront in your proposal should help you gain your prospective clients’ confidence.
Once you draft the proposal, there’s one more thing that you can do before you send it out; you should try meeting your client in person.
Meeting your client in person would help you understand their requirements and also assess your chances of getting the project.
Bidding for construction projects is surely a challenging task. And, of course, there are chances of rejection. But, you would want to do everything in your capacity to get the project.
Perhaps, making a bid that is too difficult to ignore is your first step towards acquiring the project. Maybe, you will get the project and more references from it too.