Here are Reasons Why Your Construction Bidding Process Is Failing

Anchal Ahuja

Anchal Ahuja

Senior editor

Parul Saxena

Chief editor

Last updated: August 25, 2021

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Infrastructure is crucial for the economy. Thus, the construction business is a constantly evolving sector. One of the major processes in the construction business is bidding. Construction bidding is the process of submitting a tender or proposal regarding the managing or undertaking of a construction process.

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It encompasses firm price, profits, etc. There has been a rise of around 36% in the construction bidding. Thus, it is crucial to know all vitals of this process.

Why Successful Construction Bidding?

Many construction giants consider one successful bid out of five as the decent conversion ratio for the business. Sadly, many companies lag this ratio that causes a severe business impact.

Some of the top reasons that your construction bidding process should be accurate include:

  • Easy realization of the construction project. It clears the benefit of doubt shared by the owner and the service provider in the construction business.
  • The estimation of the approximate cost of the project. It is facilitated by the construction design of the project that is achieved before the contract is awarded.
  • The total control over the project design, cost, and execution of the construction project.

Why Your Construction Bidding Process is failing?

The major five reasons that can be behind the failure of the construction bidding process include:

  • Rushing the bid:

Time is a crucial factor for any construction bidding process. However, it doesn’t mean that you can rush the bid. The incomplete bids or required forms create the first downfall in the bidding process.

The mathematical errors can cause serious issues in bidding for a construction project. You may be an expert, but rushing over a limited time can cause mathematical errors beyond repair at the organization level.

It is further important to take enough time to design accurate estimates. The rushing of the bid without accurate estimates can create an irreparable reputation loss in the industry. This estimate requires necessary tools, equipment, labor, materials, etc.

How to Correct It?

The best part is to avoid rushing the bids. It is great to give your construction bidding team appropriate time to prevent delays or rush in sending bids to the organization.

  • No visit to the construction site:

The last visit to the organization’s site causes a lack of information and data that weakens your bid. There is a lot of homework to do before creating your bid, and missing the construction site of the organization can be disastrous for your business.

In many cases, bidding companies don’t share site details with the team due to one or multiple reasons. The construction site visit can solve multiple issues and handle bids carefully.

How to Correct It?

All you need to do is provide your bidding team the right access to the construction site. It will help you cover all possible safety hazards that can arise or exist at the site. It further covers all money pits that can cause issues in the delivery of the construction project.

  • Weak communication:

Not asking questions or resolving the relevant queries is one of the major roadblocks in any construction bidding process. It is mandatory to get clarification on numerous topics even after submitting your bids.

A weak communication at this time may sink your chances of winning the bid at the organization level.

How to Correct It?

The key to great professional communication is listening skills, credibility, transparency, and consistency. Thus, it is crucial to gain complete information about the company and to maintain a central point of contact for all information. It is important to maintain transparency in details. Thus, you must mention all necessary details in a bid to avoid any miscommunication. Make sure to listen to the organization’s needs before sharing your detailed plan.

  • Not able to value time:

Multiple bidders propose the tenders for a single construction project at different times. Thus, you may get defeated by your competitors many times. So, how can you avoid this defeat?

How to Correct It?

The first step to ensure your success is to submit your bid as quickly as possible. You can try to share your bid within eight days of the opening of the tenders. It will give you priority at the organization’s side and a suitable time to clarify other details. You can send a reminder to the client after 12 days to show your keen interest in the project.

  • Weak value proposition:

Many bidders go for the routine bids without providing compelling details that make them the right fit for the business. Thus, the chances are high that the organization is not even looking at your boring bid.

How to Correct It?

It is great to have a brainstorming session with your team that can help you generate some positives that can be mentioned in the bid. You must focus on the value points that easily distinguish your proposal from other competitors. It is crucial to add valuable points related to the organization’s requirements.

Steps to an Ideal Construction Bidding Process

The six golden steps for an ideal construction bidding process are:

1. Bid Solicitation

It is the first step in the bidding process that includes seeking bids by the organization. These organizations make the mandatory construction data available to all prospective bidders. This data contains drawings, documents, and other specifications. It is also called a request to tender (RTT) or requesting for proposal (RFP).

2. Subcontracting

After sharing proposals, the bidders can reach subcontractors for delegating small construction work. It can be taken after the bid awarding according to the construction bidding process.

3. Bid Submission

All bidders have to submit their best bids for the proposed work within the stipulated time frame.

4. Bid Selection

This is the result time when an organization selects the most eligible bidder for their work, depending on their in-house selection criteria.

5. Contract Formulation

It includes the drafting of the legal framework of the project. It is completed once the organization selects the bidder.

6. Project Delivery

The construction work is started to complete the project in the designated time frame.

Wrapping Up:

The multiple reasons that are adding to the failure of your construction bidding process need immediate attention. All you can do is take the help of expert construction bidding professionals. You can also follow a streamlined process for bidding that improves the quality of conversion ratio of bids.

The weak construction bidding process is one of the great roadblocks for the growth of any business. More than 59% of the construction companies use dedicated software for your construction business.

Anchal Ahuja
Skilled in writing stellar business plans, also know how to craft a slogan or a marketing piece that gets results. I provide subject matter expertise to acquisition consulting projects, ensuring excellence in technical performance and always eager to travel, learn and educate through exceptional word crafting.

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