 Winning
Bid Strategy
Preparing Winning Bids and Guaranteeing Profitability
Winning a bid is easy. Winning a bid and making
money is another matter. Would you like to know how to win the
maximum number of bids? How about knowing how to guarantee
the success
of your construction
business? Then this course is for you.
Most contractors assume
that by adding a certain percentage to the material and labor
cost
they will be successful. Nothing could
be further from the truth! This course, contributed to by contractors
with over 100 years combined experience, will open your eyes
to "real" costs
of your bidding strategy.
Please understand that this is an online course only.
There is no book.
Lesson 1: The Strategic
Business Plan
- Putting Together a Plan - Attitude, leadership,
goals, priorities, implementation
- Your Competitors - Charting
your competition, what the win/loss ratio tells you, how to
use it and when to use it
- What Jobs to Bid - Qualifying
the job, work-on-hand, timing, ability to perform, capital requirements,
bonding, banks, suppliers, pay-when-paid clauses, future work
- Keeping Track - Planned
v. actual sales, niche market, ROI, prospecting
Lesson 2: What is Overhead?
- Office Overhead/Job Overhead - Knowledge of
your true costs is critical, separating expenses, the difference
between mark-up and mark-on, percentages and hourly rates
- What Are the Costs in Overhead -
examples of the difference between job expenses and overhead,
the one true method of guaranteeing profitability
- Where & How
to Apply Overhead - What is overhead calculated on?, comparison
of small and large shops, overhead formulas can be deceiving,
forecasting your overhead
Lesson 3: Building Your Bid
- Take-Offs - The correct way to do take-offs,
subcategories, separating office overhead from job overhead,
square footage and other shortcuts
- Productivity - Adjustments
to reflect field conditions, consistency and accuracy are keys,
a rational look at your ability to perform
- Classifications
- Labor classifications and arriving at a mean cost, labor
overhead and hidden costs, direct job expenses
- Final Applications - Checks
and balances, what to include and exclude
Lesson 4: Bid Day
- Organizing Quotes - Initial and final requests,
evaluation of suppliers and subs, verification, inclusions and
exclusions, ethics
- Finalizing
- The
ingredients of a complete bid
- Profit
- ROI revisited, dollar or percentage?, sliding scale based
on time, verification
- Miscellaneous Items- Bonds, fees, temps, etc.
- Final Bid Price - Summation,
square footage, who are we bidding this too?, adjustments, alternates,
inclusions, exclusions, verbal and written quotes, update the
bid log
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