Learning how to make winning bids is a critical skill for construction company owners. When you’re competing with dozens of other firms for a project, a well-designed construction quote template can go a long way in helping you to make your offer.
In this post, we’ll provide you with several tips that could tilt the odds in your favor when bidding for a project. We’ll also tell you how you can get your construction quotes to convince the client of your professionalism and ability to get the job done.
What is a construction quote?
It’s essentially a document that you, the construction company, submits to the prospective client. This document includes the following details:
Think of a construction quote template as a starting point for creating your bid. This formatted document can help you put your thoughts in order and ensure that you cover everything important when bidding for a job.
If you don’t have a construction quote template, don’t worry, we’ve got you covered with a FREE construction quote template.
Tips to win a construction bid contract
Here are 5 tips that could help you get that next project.
1. Put your best foot forward
When you’re completing your construction quote template, you want to highlight your strengths. Study the request for proposal carefully.
What is a request for proposal?
A request for proposal (RFP) is the document issued by the client that defines the scope of work and asks for bids.
What exactly is the client looking for? Do you have the required skills and expertise? Read The RFP carefully to determine the answers to these questions.
If you have completed similar projects in the past, mention the details. Do any of your team members have specialized certifications or experience that are relevant to the job? Bring that to the client’s notice when you are filling in the construction quote template.
2. Be the first to bid
Remember that the early bird gets the worm. If you want to be the first bidder for the project, you’ll need to complete the construction quote template in double-quick time. This could mean working long hours to collect all the details you need to make the bid.
What is the advantage of being first?
Look at it from the client’s viewpoint. They’ll be eager to know the response to their RFP. And if you’re the earliest bidder, you can be the one that responds.
Of course, you shouldn’t sacrifice speed for accuracy. Check and double-check every detail in the completed construction quote template. A mistake would create a poor impression and lower your chances of getting the job.
3. Don’t bid for every job
This tip could seem illogical at first. Conventional wisdom would suggest that making additional bids would increase your chances of success. But the opposite could be true.
Bidding for jobs that you can’t handle or those with requirements you can’t meet can be a waste of time. If you adopt a scatter-gun approach, you’ll be wasting your time. Instead, be picky about the jobs you apply for.
Bid for work that best fits your capabilities and skills. Doing this will increase your chances of winning the bid as well as completing the job satisfactorily.
4. Follow up on your bids
Experienced construction company owners know that bid submission is only the first step in winning the bid. You need to contact the client and build a relationship.
The first step is to identify the decision-maker. Remember that there may be more than one person to convince.
When you do get to meet your prospective client’s representatives, ask open-ended questions.
How satisfied were they with their previous contractor?
Do they anticipate any specific challenges in the current project?
Tell them about your experience with similar jobs. You need to convince the client that you’re the most qualified person to complete the job at hand.
5. Summary or Introduction letter
Here’s something else you can do to increase your chances of winning. Provide the client with a single sheet mentioning your bid’s pertinent details and all your strengths and qualifications.
The client would have received multiple bids, possibly dozens, and they would find it cumbersome to scroll through endless pages to find the information they’re looking for.
A summary of your proposal or an introduction letter on a single sheet can make your bid stand out from the crowd.
Now let’s examine how you can use a construction quote template to demonstrate to clients that you could be the best choice for the job.
Tips to make professional construction quotes
Keep in mind that the client will closely scrutinize everything you key into the construction quote template. So, ensure that each word portrays the correct picture, and every number is accurate.
However, this is not enough to win you the bid. Think of these conditions as “necessary but not sufficient” to become the winning bidder.
So, what should you do to boost your chances of winning the bid?
Here are 4 tips that you could use:
1. Get the basics right
It’s essential to know how much the material you need to complete the project will cost. Remember that material prices can change, and if your bid is based on out-of-date prices, your profitability could suffer. You should factor in material waste as well.
Make sure to choose the materials that fit the client’s needs and budget.
Next, closely examine your labor costs. If you need to bring in specialty labor or craftsmen, you would have to increase your bid to take care of these costs.
Finally, make an allowance for contingencies. Things don’t always go as planned. Set aside a small percentage of your budget for the extra expenses that may arise during the project.
2. Add as much information about prices as possible
Indeed, the price you quote in your bid won’t be the only factor that the prospective client considers. They’ll also look at your experience with similar jobs, financial strength, and understanding of the work scope.
However, don’t underestimate the importance of the amount you quote. If you aren’t the lowest bidder, the client will want more details. Why are you charging more than the others? You must explain your prices.
It’s a good idea to provide details for each line-item in your bid. Doing this will tell the client about your expertise and reassure them that you’re not overcharging.
3. The prospect has a question
After you submit your bid, the client may get back to you and ask for more information.
That’s great news! You’ve got a foot in the door!
Don’t rush to provide a reply. Take your time to understand the query. And give a comprehensive response that not only answers the question but gives additional details, as well.
This will serve two purposes. One, the details you provide will help the prospect to understand your bid better. And equally importantly, it will tell the prospect that you have taken the question seriously and gone to the trouble of providing an exhaustive response.
4. How long is your bid valid?
This is a crucial issue. Ignore it at your peril.
The RFP may stipulate that bids must be valid for a specific number of days. This period could be 30, 60, or 90 days. In this situation, you’re considered to have agreed to this timeframe. Any changes in input costs would have to be borne by you.
What if the request for proposal doesn’t mention a validity period?
If this happens, you should say that your bid is valid until a specific date. This will give the client a time limit for making a decision and could even help speed up the bid evaluation process.
With This Construction Quote Template, You’ll Win Bids Left and Right
The construction industry is a competitive field, and it can be a challenge to find work. But there are plenty of opportunities, and you can increase your chances of making winning bids by following the principles we’ve outlined in this post.
At Camino Financial, our focus is on providing small business owners with the funds and other resources they need to succeed. Our motto, “No business left behind,” is our guiding principle.
As part of this endeavor, we’ve created a Construction Quote Template that we invite you to download. We’re sure that it would help you to win more bids and increase your business volumes.
How to use the Camino Financial “Construction Quote” Template
Using our template is super easy!
Download and open the document and fill in the fields (editable fields show as a blue box).
If you don’t know what information you should input in each field, hover your mouse on top of it: a small dialogue box will appear with the answer.
Don’t forget to save your template after you’ve filled all the fields.