The bidding process is one of the most important steps in a company’s pathway to revenue generation. Completing an accurate and profitable bid on time makes the difference between getting work and looking for it. This reoccurring task is closely tied to your revenue stream, so let's talk about some strategies you can use to get bids done in half the time.
The 1st secret of bidding:Evaluate the project to determine if the job could be worth the time it will take you to collect the information for the bid.
Look at the scope of the work and the material requirements. Are the plans and specs complete enough for you to provide an accurate and winning bid? Be sure to review the bid package for complete plans and drawings. If something is missing consider it a red flag that could indicate unexpected and costly changes in the future.
Work up a detailed estimate of the cost and include possible conditions that could cause problems. Give yourself some flexibility at the beginning of a project to account for problems with material availability and delivery delays. Being clear about the possibilities and problems at the start is guaranteed to save you from headaches down the road.
The second secret of bidding:Consult with a supplier that is familiar with the material, its price, its availability and the cost of labor.
You must combine your knowledge and experience with carefully chosen outside resources to submit a winning and profitable bid. If you’re outsourcing any of this work, be sure the company is in full compliance with the bid directives for the project. Selecting the right team will help to keep your project performance consistent.
Whether the bid involves a single item or multiples, a known source adds significant value to the bid. Today, material prices fluctuate and it is difficult to find fixed prices on inventory when the orders are six months down the road. The Material Take Off (MTO) can help determine the full project cost. Review it closely in order to reduce any variables without changing the goal of the project.
Consider the important variables. Is the order date for material during a seasonal shutdown? Will you need to order during an industry peak – when inventories are low and mill lead times are long because of the surge in demand? These details can prevent rework and missed project timelines. A few suppliers will hold the price for a period of time, but getting the quoted price six months later is a challenge unless they can afford to set aside a portion of their inventory and you have the budget to hold it.
At Boyd Metals, we know submitting a winning bid isn't easy. You need an experienced supplier that you can rely on for the latest info on pricing and availability. Our team has the data, the expertise, and the materials that you need to win bids and maximize the profitability of your projects. What are you waiting for? Partner with Boyd Metals today!