Some construction companies place their bids randomly without any specified tender strategy. This is far from a win-win approach. It is necessary to pick sides with the most efficient tactics when it comes to bidding. Building companies can count on successful performance on the market if they have a well-thought tender strategy.
To take your construction business to the next level, it is recommended to use project bidding software. This is the essential automation tool for top-performers in the context of the building sector. This way you will be able to take part in tenders as the flagship executor every customer would like to cooperate with.
That is why start your tender strategy forming with the selection of the most suitable software and digital solutions. They come in handy for management, process planning, and accurate estimates. But what else should be taken into account to become the best tender applicant? Let’s dive into the approaches and hacks together.
Step 1: Planning and Setting Goals
Each reputable construction contractor should have long-term goals to form the precise tender strategy. If you do not know what to expect in 3,5,10 years, it is rather complicated to plan your performance on the market. Do not under or overestimate your opportunities. Sometimes, building companies decide to participate only in one tender or place bids in a dozen at once.
This is a wrong strategy because the workload and possible contracts to sign with the clients should be analyzed and planned beforehand. It is normal to add to the tender strategy several potential projects. But this is the never-never land while the construction company does not set goals and achieve them or act in a way that does not match the business strategy and capabilities of the building team.
Step 2: Undertake Accurate Estimates
The best-performing bid is the one that will be attractive for the customer and profitable for the contractor. Use reliable construction estimation tools to meet the expectations of the potential client and your planned budget. This is the number one rule of the successful tender strategy. The automated calculations provided by the bidding and estimating software will provide several benefits to your company at once:
- Reduced terms for the bid placement;
- Accurate estimation without missed details;
- The well-balanced bidding background;
- The improved bid planning and management.
Note that It is critically important to analyze all the possible projects to tender. Some of them can be placed by unreliable consumers or suspicious agencies. Monitor the rating of your potential clients and raise your reputation as the contractor.
Step 3: Manage Projects Well
Sometimes new conditions and regulations take place after the bid was confirmed by the consumer. Do not be afraid to decline the offers with unfavorable terms. You as the executor of the building works have the right to leave the tender at any time.
Additionally, your project management matters in the context of the success of your tender strategy. It means that you need to understand what scope of work you are able to perform at once. There are many construction companies that win several tenders and successfully complete their tasks in time.
Step 4: Abide by the Rule of Cross-Functionality
Who said that top-performing companies could not take part in small tenders? You can try your chances in both huge projects and average ones on the market. It is necessary to provide a sufficient workload to your building team. So the downtime is worse than the small scope of work for a certain period of time.
Be ready to bid on even small and medium-size projects if it is reasonable (read profitable) for you as a contractor. Cross-functionality is a great rule to abide by. Improve your tender and project management performance with multi-purpose activities on the construction market.
