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LigaAsuransi > Blog > Risk Recommendation > Industri Konstruksi > 13 Secrets How Contractors Can Win a Bid
Industri KonstruksiRisk Recommendation

13 Secrets How Contractors Can Win a Bid

Mhd. Taufik Arifin ANZIIF (Snr. Assoc) CIIB
By Mhd. Taufik Arifin ANZIIF (Snr. Assoc) CIIB
Published Wednesday April 27th, 2022
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1 Min Read
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Liga Asuransi – Dear readers, how are you? After discussing a lot about risk management and insurance in the construction sector, this time we will be discussing the tips needed by contractors to win tenders.

All we know is that almost the entire construction project is built through the tender process. Usually, several contractors are participating, they compete fiercely to become a winner.

As your insurance broker, we care about the success of our clients in winning tenders. If our client wins it means we get a job too. Wright?

Well, to help you to win more tenders, this time we want to share interesting tips for you. These tips we picked up from an article on the internet. The link is at the very bottom of this article.

If you are interested in this article, please share it with your colleagues so that they also understand like you.

Your bid proposal is kind of like a resume or a job application; it will make a first impression on the client, let them know how qualified you are, and even give them an idea of what to expect when they work with you. 

You’ll find bid invitations in a variety of places. When you receive an invitation to bid, simply download the application package and review it carefully to gain a firm understanding of what the job is, what skills the owner desires, and any preferences or specifications they have for the job. 

This is also the time to make sure the package is truly complete, and that the owner or contractor has a realistic idea of what the project will cost and how long it will take.

Below, we will be discussing 13 factors of the most common ways how to win a bid for construction work. All of these will be helpful for you to submit your winning proposal plan for future bids.

  1. Understand the Scope of Work

One of the primary reasons for failing to win construction bids is that you didn’t understand the scope of work. According to Business Dictionary, the scope of work is “the division of work to be performed under a contract or subcontract in the completion of a project, typically broken out into specific tasks with deadlines.”

Unfortunately, if you fail to fully grasp the scope of work set by the request for proposal (RFP), then you’ll have a hard time setting the right tasks or deadlines and therefore have no chance to compile a winning construction proposal. 

Make sure you read the scope of work carefully. If there’s an aspect that doesn’t make sense or you need more information, come back with any clarifying questions if there’s enough of an opportunity to submit before the proposal deadline. 

  1. The Right Price

If you can’t seem to win construction bid attempts, the price may represent at least part of the problem. Your clients won’t be happy if you misquote prices, overcharge, or underbid. 

Even bidding less than your worth is a problem because it can lead the evaluation team to wonder about your level of expertise.

So, remember that quoting both too high and too low is a red flag. While you can’t possibly predict what your competitors will quote down to the dollar, the best tactic is to worry less about under or overbidding.

  1. Explicitly Explain Your Cost

When looking over a bid today, the evaluation team might experience a moment of sticker shock when looking at the price. That’s not to say construction costs are unreasonable or deal-breaking, or that you can’t charge what you’re worth. Your only job: explain your costs explicitly, line by line, and show how hiring you will provide the value they are looking for in a project.

  1. Show Your Experiences

Many companies write stellar proposals, then forget to back them up with proof. Always remember to include relevant past projects when submitting bids and proposals. After all, you’ve done great work, so don’t forget to show it.

  1. References 

References matter, and not just for college applications. Provide the right and relevant references to showcase your performance and track record. It’s better to use fewer references than sacrifice their quality. 

  1. Clean Safety Record 

A good safety record means less risk and fewer costs, both of which clients care about. If your safety record is faulty, you aren’t likely to be the winning bid.

If you’re concerned about your safety record, it’s time to institute a new approach. You need to create a culture where safety is prioritized, and that means crafting a careful safety plan and educating your employees on the best means of adhering to the standards. 

For example, here are five simple steps employees can take to up safety today. If this is a problem, it’s the first one you should tackle–both for your chances to win construction bids and for your company’s general wellbeing in the future.

  1. Missing Documents and Information

If you want to win construction bid attempts, you must complete your proposal and bid to the letter. Even one small missing section or document could immediately disqualify you. 

Ensure you submit everything that is requested. You should double, triple, and even quadruple-check every part of the document before you submit your proposal.

  1. Read the RFP Thoroughly

If you didn’t read the RFP thoroughly, you’re in bad shape. The RFP will ask for very specific information, and it’s best to follow instructions exactly. 

Don’t deviate from them at all and adhere to any requirements on page count and specifics for submission. This shows you’re a professional and that you respect your client’s needs and preferences upfront.

  1. Late on Submitting

Even one-minute matters when submitting a bid. If you can’t follow a simple deadline right at the outset, why should a client trust you to adhere to the years-long timeline with budgetary consequences? 

Before you submit your construction proposal, leave plenty of time to submit to navigate bidding systems that could be manually burdensome and slow. Bottom line: If you want to win construction bid attempts, don’t be late. Ever.

  1. Vibe Well in Person

While you might have made it to the in-person interview stage, if the owner or other project stakeholders involved feel like you’re not a good match personally, it could be a deal-breaker. 

While it’s wise not to force a working relationship, try to be your best self and highlight how well you can collaborate or compromise when interviewing with stakeholders. 

  1. Original Proposal 

If the project is worth your time, make sure to customize and personalize the proposal. Showcase how your brand and services will be different from your competitors and make them want to see more from you.

  1. Use the Right Tools

Using the right tools and equipment for project matters to its success. In your proposal or interview, you might specifically state digital tools you will be using or have used on previous projects—but are they the right ones? 

An owner might have had experience using specific software and technology tools in prior projects and might be looking for them. Do your research and keep up to date on the latest innovations in the industry and can showcase their value in the proposal.

  1. Proof Your Proposal

If you have a solid bid, a small typo here and there is likely not going to be the deal-breaker. However, mistakes and sloppiness in a construction proposal generally communicate something bigger; either your bid was rushed, or the quality of your work won’t be up to standard.

If you’re on the shortlist, a few mistakes could easily push you below the consideration fold. Before you hit submit, make sure a few sets of eyes have looked it over.

 It’s also wise to keep in mind that a well-written proposal is important but checking the math on the pricing is also essential as a small miscalculation could mean dramatically over or underbidding.

Why do you need an insurance broker to get the best project price?

Although the cost of insurance premiums for a project is not very significant, the cost of insurance premiums is still important to be priority for total cost calculation.

It could be because the premium rate that you write down in the proposal is a bit high, it can lead to defeat.

Therefore, when you calculate the cost of insurance premiums for tendering a project, you should ask for help from your insurance broker to estimate the cost of premiums.

In addition, the insurance broker can also help to review the conditions and insurance requirements requested by the contract.

One of the insurance brokers companies with extensive experience in the field of construction in Indonesia is L&G Insurance Broker.

For all your project insurance needs please contact L&G right now!

 

Source: https://constructionblog.autodesk.com/winning-construction-bids/

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TAGGED:construction indonesiahow to win tendertender konstruksi
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ByMhd. Taufik Arifin ANZIIF (Snr. Assoc) CIIB
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Taufik Arifin has more than 30 years of experience in the insurance brokerage industry. He holds the Australian New Zealand Insurance and Financial Institution (ANZIIF snr.assoc) CIP and Certified Indonesian Insurance Broker (CIIB) certificates. Please follow the author's Instagram to get to know him better: @taufik.arifin.31
Previous Article Why do contractors Need Errors and Omissions Insurance?
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