Construction professionals estimate that they win 1 out of 6 bids. Create bids accurately and efficiently to improve your bid-to-win ratio.
Bid management is one of the most important processes for gaining new business. Every contractor needs an effective bid management system in order to improve efficiency and organisation. Ultimately, this will lead to greater levels of success.
However, the construction bidding process is an area where many fall short. Many businesses overlook this, but it’s beneficial to have a dedicated bid manager who uses the right tools for an optimised outcome. If you want to win more bids, then you will need proper bid management software, processes, and expertise on your side.
What is Bid Management?
Bid management covers the whole tender process for a project. Generally, contractors need to create bids in order to win contracts and take on new projects. Every bid is an opportunity for growth and success. Every bid lost is a loss of business. So, the bid management process is something that needs to be fully streamlined and well organised.
Large organizations may have an entire bidding team. Generally, a single bid manager will oversee all duties. The bid manager needs to have a thorough understanding of all organisational and commercial elements of the business.
In order to secure a successful tender, their bid needs to be accurate, efficiently processed, and offer the best solution to the customer. As such, proper bid management practices are crucial.
Why is Bid Management Important?
Creating bids is a time-consuming job. Particularly in construction, where there are many different parts and sub-contractors involved in each bid, the process can be intensive. Proper bid management avoids time wastage and maximises the efficiency of each bid.
This is particularly important to contractors because you don't want to waste a lot of time on bids that you don't win. Particularly when there are other projects and workloads happening while the bid is being put together. Throwing time-intensive bids into an environment with tight deadlines can be incredibly stressful. This is why companies need good, efficient bid management.
Ultimately, bid management is essential because it leads to your company winning more tenders. Through using the right construction management software, contractors can speed up their bid management process a great deal. This can help to create more bids with greater accuracy - resulting in more success.
Tips for Successful Bid Management
To improve efficiency and organisation, you need to manage bids properly. To do this, here are a few basic processes to follow.
Unfortunately, human error is always a possibility. No matter how experienced your bid manager is, there is always room to make mistakes. Bids with mistakes will not win you a tender. This is why you need efficient, fit-for-purpose estimating software, like Candy.
The software will enhance accuracy and remove the scope for human error. Having all your past projects, subcontractor information, and estimates in one place can also help to produce a much faster bid.
At the end of the day, success in the bidding process comes down to accuracy and efficiency.
Instead of having a single deadline for the delivery of the bid, break it down into sections. Each part of the bid should have its own deadline.
Creating multiple steps will help you to tick off the different areas of the bid to become better organized. Breaking the bid down like this will also help to make each section of information easier to focus on.
Besides providing the necessary, accurate information, a winning bid should also grab the client’s attention. So, you need to also consider the design when putting together a winning bid. The end result should be neat, engaging, and easy to follow.
To provide factual information, everyone needs to stay up to date. Good communication channels and easy access to information aid this. While this may involve consistent meetings, another solution is the software used.
Construction management software allows you to update data from anywhere and share that same data with everyone on the team. This results in everyone staying on the same page at all times.
For any contractor or construction business, the bidding process is essential. This is what can determine the success of your business and it is something that requires accurate management.
Bid management should always be taken seriously and it should utilise the best software and processes available. Improving the bid-to-win ratio and taking on new projects is something that all contractors need to focus on. With the right bid management strategy, you can achieve this more easily.