The construction industry has continued to grow in recent years with more work popping up left and right. With more work, there’s more companies bidding to win jobs. Unfortunately, a construction company isn’t going to win every bid they put in, especially when there’s a lot of competition.
There are many reasons why a company can lose a construction bid. It’s important for a company to try and learn why it’s lost a bid so it can grow from its shortcomings and begin to win more bids more often.
We wanted to share with you some reasons why a company may have lost a bid at a construction job:
- The company didn’t understand the scope of work, which means the company didn’t deliver proper tasks or deadlines in the proposal. To remedy this in the future, always ask questions to clarify something about the project that you don’t understand.
- The bid price wasn’t right for the client. You don’t want to overbid, underbid, or misquote. To give the best bid, focus on accurately pricing your services/materials based on the client’s scope of work.
- The company didn’t explain costs. Construction costs continue to rise, so you may need to explain why your bid is what it is. Labor has gone up. Materials have gone up. Break down costs and explain them to the client so they won’t just dismiss your bid.
- The company didn’t show experience. Show your credentials! Your experience is proof you know what you’re doing. Show it off to the potential client. Remember, bid for projects you do have experience for, so you won’t take something on you cannot handle.
- The company had poor or mediocre references. If a potential client contents a reference, you doesn’t speak of you highly, you likely won’t win the bid. Choose quality, great references to give to the client, because clients who are anything less won’t help your cause.
- The company has a poor safety record. For the future, implement better safety protocols and plans to educate employees so less accidents and mishaps occur.
- The company left out important information. The bid must be complete. If documents and other info is missing, you likely won’t be considered.
- The company sent the bid in late. Tardiness will be a red flag for a client. If you’re late with a proposal, you may be late with everything else.
By working on the above points, you will put yourself in a position to win a better bid.
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