Tips to improve your bidding strategy

Gina Theron   |   January 24, 2016

Winning a bid can often come down to the strategy and approach you use when putting together and submitting your application. Often, factors are overlooked or areas of a bid are misunderstood. Being clear on your strategy and ensuring it's inline with what's industry approved can help increase your chances of winning work. Reading articles and asking for help could be your greatest advantage. Be aware of what people are looking for and the do's and not's of bidding. 

1. Understand what your business is worth

Often businesses don't assess their skills accurately before submitting bids and under evaluate their worth. Don't miss out on quality projects and more profit because of a dodgy evaluation. Ensure you give yourself enough time to do the evaluation and seek help if you're unsure. 

To assess the worth of the skills your business possess you should conduct:

  • A thorough staff appraisal 
  • Performance evaluations 
  • Staff interviews
  • Skill assessments 

Take these results to compare and determine what levels of expertise you can bring to a project.

2. Don't bid too low

Many business are under the impression that to be competitive in a highly saught after contract you must submit the lowest bid of the pool. This is a detrimental mistake which can sometimes indicate to the developer that your business isn't aware of how bids work or that you haven't submitted many. On the other hand, if your low bid is successful, you'll lose out on a great deal of profit which you would have earnt had you bid based on the true value of your business.

Receiving an undervalued bid tells the developer that:

  1. The contractor may not have the ability to deliver on the project.  
  2. The contractor is careless in their approach to the bidding process which could reflect on the quality of work they'll produce.

Delivering a bid that is calculated and correctly valued will increase your chances of winning work. 

3. Use the technology available for estimating 

Outdated spreadsheets or hand calculations just won't cut it these days! There is an long list of programs such as Clear Estimate, Plant Swift, Quick Bid and more which will helps you produce an accurate and well presented bid. 

Submit a competitive bid presenting your business' capabilities to it's full capacity. Following these tips will help guide you in setting the right price for your work. We have created an eBook with 10 tips to successful tendering to give you additional guidance when submitting a tender application.

Gina Theron
Gina is a Marketing Coordinator at Felix. She is a business and engineering student, and relishes working for one of Australia's greatest mining and construction disrupters. Harsh critic of tomatoes and spiders that surprise her.

Related Articles

Insider
4 quick tips to improve your team's efficiency

It's a no-brainer that in any business, to remain competitive you must boost operational efficiency wherever possible. It's particularly important for SMEs to operate efficiently, because they often have more limited resources than larger top tier companies. 

Reporting on projects, pooling together plans and quotes for tenders, and making sure projects are completed on time (and within budget) are all a part of the golden goal - and understanding what small operational tweaks you and your team can make to improve efficiencies will help reduce overall operating costs, improve client satisfaction, and will help keep you ahead of your competition. 

Insider
How local suppliers will improve your tender applications

State Governments spend billions of dollars each year on goods, services and capital works. As government procurement is undertaken on behalf of the community, it is regulated to ensure decisions made deliver the best value for money for the taxpayer's dollar. Find out how to respond to a tender the right way - by highlighting the benefits of dealing with local suppliers.

Insider
3 tips to improve your customer service

Successful business inherently mean strong relationships with customers. There’s many ways to advance your standing with your most valuable clients, all it takes is a little initiative from you and your company.

Get the latest project news

Join thousands of construction and mining pros getting the best content right in their inbox.

✓ updates on Australia's pipeline of state and federal projects

✓ fresh contract awards from major contractors and builders

Complete the form to get started