After you have established reasons why customers should hire your company, now it’s time to find jobs to bid where you can be successful. Your overall estimating and bidding strategy is to get enough signed contracts at your price to cover your job costs, overhead, and then make a profit. This requires several winning plans. The first strategy is to have a strategy! Many contractors bid any job they are offered to bid. They don’t have a strategy that helps them decide which jobs to bid and when to say no. What’s your estimating and bidding strategy?
Before agreeing to bid a project, create a list of questions to determine if you will have an excellent chance to win the contract.
1. Do you want to negotiate the project?
– How will you convince the customer to negotiate with you?
2. Do you want to be the select or only bidder?
– How will you implement this strategy?
3. Do you want to get the last look?
– How will you make this happen?
4. Do you know your bid-success ratio against your competitors?
– How do you keep track of your success versus competitors?
5. Do you have competitors you don’t want to compete against?
– How will you discover this information?
6. Do you have some competitors you will bid against?
– How will insure the bid list gives you a chance to be awarded a contract?
7. Do you have an ideal number of bidders you’ll bid against?
– How will you insure this happens?
8. Do you have a maximum number of bidders you’ll bid against?
– How will you decide when not to bid a job? Continue reading