To Bid or Not
On one hand, a backlog of construction bids can indicate that your company is high in demand. On the other hand, staying on top of the backlog will keep your company from leaving money on the table. One thing is certain, increased bid efficiency and accuracy will bring in more business with less effort.
Bid-Hit Ratio
The number of projects that are bid on compared to the number of bids that are won is known as the bid-hit ratio. For private work, striving for a 4:1 ratio or less is recommended. This ratio can be accomplished by pre-qualifying your customers before bidding to ensure you are on the correct bid list, according to ForConstructionPros.com.
In this blog, we’ll dig deeper into how to increase construction bid accuracy and efficiency so you can eliminate your bid backlog.
Bid/No-bid Analysis
Conducting a bid/no-bid analysis allows you to evaluate internal and external factors to determine which projects are suitable for you to bid on, saving you time and resources. To ensure you are bidding on projects that align with your company’s goals, keep the following factors in mind:
- Financial Feasibility
- Operational Capability
- Historical Analysis
- Strategic Alignment
Financial Feasibility
Before bidding on a job, estimate your costs to determine if the job will be profitable. The estimate should include direct costs, such as labor, equipment, and travel, as well as indirect expenses, including taxes, insurance, vacation pay, and tools.
Operational Capability
You have a greater chance of winning a bid if you demonstrate your ability and competence to complete the job. Examine your other projects to ensure you have the employees, equipment, and other resources available to commit to a new job.
Historical Analysis
Your past bids should be archived—both those you won and those you lost. Past proposals can help facilitate your bidding choice. Before making your decision, consider your past performance, lessons learned, and feedback from previous bids.
Strategic Alignment
The jobs you execute will determine the direction your company takes. Examine each proposal’s compatibility with your overall plan. Consider the proposal’s long-term advantages and effects, including the likelihood of repeat business, recommendations, collaborations, and innovation.
Bidding Efficiency & Accuracy
Being the first to submit a bid for a project will give you an advantage over the competition. SmartBuild design system will save over 2.5 hours when creating bids, winning more business.
The post-frame industry has struggled with inadequate CAD systems, manual operations, and design systems. Smart Build Systems’ 3D web-based design software for post-frame and all-metal structures hits the nail on the head! It is the post-frame industry‘s only web-based system that automates complete design for post-frame structures.
It’s as easy as entering the following six pieces of information:
- Building size
- Roof style
- Foundation
- Doors & windows
- Cupolas
- Finishes
Then, the SmartBuild Systems construction bid software will generate the following for any post-frame structure:
- 3D model
- Framing
- Material list
- Sheathing & trim cut list
- Drawing
- Pricing
- Bid
Bidding Made Easy With Metal Building Design Software
With our construction bid software, you can cut bid time to about 20 minutes and increase the close rate by 50%. Contractors and suppliers win more business and increase sales with SmartBuild. Additionally, SmartBuild automation eliminates takeoff errors, decreases business costs, and engages prospective clients with live design sessions and on-the-spot proposals.
Call today for a free live demo and learn how SmartBuild Systems can elevate your business. We invite you to try SmartBuild for All Metal Buildings with a free trial you can start today!
