Proven Techniques for Effective Bid Management

Just as the best coaches build a lineup of powerhouse players and put them in a position to succeed, effective specialty contractors have mastered the art of bid management.

They know how to score each opportunity and identify which ones to pursue. They go beyond the role of a bid manager, overseeing the bidding process, selecting relevant bids, managing the bidding team, and putting their players in a position to win more projects with the right guidance and tools.

Here are seven techniques that will improve your team’s construction bid management, leading to more at-bats and hits. 

Streamlining the Construction Bidding Process: Bid Qualification and Bid Scoring

When bid data is scattered across emails, Excel sheets, and estimation platforms, it can be challenging to stay on top of your active bids — and to know which opportunities to pursue.

Swinging at every opportunity within striking distance of your expertise spreads your resources too thin. Instead, pre-qualify bid opportunities based on specific criteria and focus your resources on the projects that best fit your company.

Use a lead scoring system to help you sort through the reams of bidding opportunities. To create one, start by identifying factors that would make a project a good fit — for example, type of project, needed expertise, location, timeline, and budget. Attach a point value to each category, and start scoring leads as potential projects come to your attention.

Bid management software solutions make lead scoring a lot simpler and less time-consuming. 

TopBuilder’s Bid Management module allows you to score and organize leads and track their progress. Once you set this up, the system automatically lead scores bids allowing you to respond to the ones your most likely to win and that are most profitable. 

Mastering the Details: Crafting Winning Bids

Bid submission is a crucial step in the bid management process.

A successful project bid clearly defines necessary details like the scope of work, timeline, milestones, and cost breakdowns. Working closely with estimators to develop accurate cost assessments and bid proposals is essential to ensure you have the resources required to execute the project profitably. 

You should also highlight any relevant qualifications, professional certifications, and experience that make your company a great fit for the project.

Here are a few tips for writing a concise and compelling proposal:

1. Highlight your experience

Briefly outline the qualifications that show your company is suited to the project, including professional licenses, certifications, past experiences, and expertise. 

2. Include visuals and cost breakdowns

Supplement your text with visual aids such as project timelines, charts with cost breakdowns, and project plans. 

3. Describe your values and approach

Demonstrate that you understand the breadth of the project and outline your approach to risk mitigation, onsite safety, and stakeholder communication.

A clear and detailed bid builds confidence among general contractors and ultimately helps you win more projects. 

Building Trust: Clear Communication Channels

Clear and effective communication throughout the bidding process is essential to building trust. 

Ask your GCs for their preferred methods of communication (phone, email, text) and stay in touch with them throughout the bid management process. When you reach out, ask for feedback and answer any questions they may have about your proposal.

Proactive communication helps eliminate potential misunderstandings before they happen. It also lets you clarify expectations and establish realistic budget and timeline goals from the start.

Collaborative Tools for Success: Construction Bid Management Software

Managing bids on construction projects can be a constant juggling act. Construction technology tools like bid management software can streamline your process.

Bid management helps specialty contractors organize documents, optimize workflows, and ensure compliance. It provides a central platform for managing bidding-related tasks, from inviting qualified subcontractors to creating bid packages and sharing documents. 

Look for bidding software that includes analytics features such as bid forecasting and scoring — and the ability to create reports and dashboards, helping you make the most of your data. 

TopBuilder integrates with estimating software tools, including STACK — or you can seamlessly import estimates from Excel spreadsheets.

When you have access to all your bidding data on an easy-to-manage dashboard, you’ll have more time to spend completing jobs and building new relationships with general contractors. 

Beyond the Bid: Effective Negotiation Strategies

Negotiations are often a necessary step in the construction bidding process, so you need to be prepared. General contractors might request a lower price even after you’ve been selected as the winning bid. Here are a few strategies that can help you negotiate effectively.

Ask questions about priorities and budget limitations

Make your best effort to understand what the potential customer cares most about related to the project. Have they had negative experiences with past contractors in your industry? Do a little digging in your conversations and find out where their pain points and concerns lie. Ask questions to pinpoint their budget limitations, too.

Make the case for your company’s expertise

If the project is a good fit, use the information you gathered about the customer’s concerns and budget goals to present your company as the best choice. Highlight any relevant experience and customer stories or testimonials to make your case.

Stay flexible and look for ways you can both win

Flexibility is key to successful negotiation. If the customer’s offer is lower than you’d like, find ways to compromise — such as reducing the project scope to fit their budget. Look for opportunities to meet their needs while sticking to your profit margin goals. If you find that their budget is too far from what you need to make the project worthwhile, be prepared to walk away.

Negotiation is part of relationship building — so it’s worth spending significant time and effort on it. When you learn to negotiate effectively, you’ll secure profitable projects and establish positive long-term client relationships.

Learning from Losses: Analyzing Bid Results

Capturing and analyzing your bid results — factoring in both wins and losses — can lead to better decision-making. Looking at losses can help you manage bids more effectively in the future and also understand which types of projects you’re most likely to win. 

In TopBuilder, you can track marketing key performance indicators (KPIs), conversions, and past bids — and see forecasts and actionable steps based on your strategies and goals.

Building a Winning Construction Bid Management Strategy

Effective construction bid management starts with an organized, strategic approach. 

From scoring and pre-qualifying your leads to creating targeted proposals, negotiating the details, and analyzing wins and losses, taking a big-picture approach to bid management can pay off in significant ways.

When you adopt a digital solution to help you track bidding data, you can make the most of your experiences, save time, and ultimately win more projects. 

Schedule a demo to learn more about TopBuilder’s bid management tools.