If you have a contractor’s license in Florida, you know that the very best thing to holding that license is actually winning projects. Winning projects entail that you bid on them first. In fact, construction contractors usually get most of their jobs through the bidding process.
In this article, we discuss some ways in which to improve your bidding, so you can win those projects, especially since you have that FL contractor’s license.
Remember the Two Golden Rules
The two golden rules are: submit very accurate cost estimates and offer the lowest bid among all other contractor’s license holders. The second rule is almost always true when you’re bidding for a government project. For other projects, qualifications and other variables are just as important as your price level. To make sure you’re bidding the right amount, you can make use of construction building software.
Be Accurate with Your Bids
As previously mentioned, giving accurate bids is very crucial to winning projects. This means, for example, if you have a FL contractor license, you should be able to bid using the costs and terms of material, labor and overhead and indirect expenses.
Knowing the right amount will get you to that sweet spot without having to price your bid too low so that you’re losing money or pricing your bid so high that you don’t even get to be considered for the project. There are several ways in which to increase the accuracy of your cost computations.
First, factor in quantity takeoffs and work scope. Second, create a bill of quantities, which itemizes the materials and work needed. Third, check on the actual costs in your locality, as well as your previous and current projects (if any). You also have to factor in cost fluctuations for labor and materials, depending on the season and the interactions of demand and supply. Fourth, make sure to integrate costs in terms of storage, utilities, and specialty services. Fifth, keep in mind materials that are custom-made, that need rush production, or require extra care in handling. These would definitely increase your costs. Sixth, integrate any project risks and reflect this in the bid (e.g., inclement weather). Seventh, do not neglect to include general or overhead and administrative costs. These are the usual expenses, regardless if you have an ongoing project or not, like accounting.
Monitor Your Winning Percentage
You can increase the probability of winning bids and projects if you monitor your winning percentage. This amount is the win rate or bid-hit ratio or capture ratio. Of course, there is no perfect ratio. However, you need to make this ratio as low as possible if you have a contractor’s license in Florida. For example, a 1:1 ratio means that for every bid you have submitted, you won it. Those with a Florida contractor’s license that bid constantly on projects or on very competitive projects or mostly on government jobs usually have higher ratios. On the other hand, contractors that work on negotiated projects typically have lower ratios.
Track the information pertinent to your winning percentage, like evaluating your win per sector, geography, estimator, job size, etc. If you see there is a trend in the kinds of projects you typically win, concentrate on bidding on more of these projects.
As soon as you have figured out your baseline, lower your ratio by working hard on the accuracy of your bids, promoting your services by focusing on your strengths and previous successes, following the bidding processes completely and thoroughly, using a personal touch when meeting with a project’s decision-makers, and ensuring that your bid is unforgettable (use testimonials, certifications, pictures, training, awards, etc.).
So you can focus your energies on winning that bid and that project, let Contractors Reporting Services in Tampa, FL focus on the administrative aspects of your business such as licensee requirements and license renewal.