Did you know that the average construction contractor wins only about 10% to 20% of their bids?
This means that for every 10 projects they bid on, they secure just one or two. However, by adopting strategic bidding practices, you can significantly improve your success rate.
For instance, in residential remodeling projects, consider the following strategies:
- Showcase Relevant Experience: Highlight past projects similar to the one you're bidding on. Providing case studies or testimonials can demonstrate your expertise and reliability.
- Provide Detailed and Transparent Estimates: Offer a comprehensive breakdown of costs, including materials, labor, and any potential contingencies. Transparency builds trust with clients and sets clear expectations.
- Leverage Technology: Utilize construction bidding software to manage variables such as supplies, paperwork, and man-hours efficiently. This not only streamlines the bidding process but also allows for quick adjustments if project details change.
By implementing these approaches, you can enhance your bidding effectiveness and increase your project acquisition rate.Follow this perfect formula, and you'll be on your way to winning more bids than ever before.
Only Bid on High-Quality Construction Leads
To increase your success rate, it’s essential to focus your efforts on high-quality leads. This not only saves you time and resources but also ensures that you're putting your energy into projects with a higher likelihood of success.
Tap Into Your Network
One of the most powerful ways to find high-quality leads is through your network. The more people you know in the construction industry, the better your chances of securing valuable opportunities.
Search for Owners of General Contractors You Want to Work With
Focus on building relationships with general contractors who manage projects you’re interested in. A referral or personal connection often holds more weight than cold outreach.
Leverage Your Current or Former Colleagues
Reach out to colleagues from previous jobs or companies, as they might know of upcoming projects. Past collaborations can provide trusted connections that lead to new opportunities.
Use a Lead Generation Service
Lead generation services are a great way to access a consistent stream of high-quality projects. These services offer tailored leads that match your skill set, ensuring you're bidding on relevant and lucrative opportunities.
Run Ads Targeting High-Quality People
Another effective way to generate high-quality leads is through targeted advertising.
Using Facebook Ad Targeting
With Facebook’s robust targeting options, you can specifically reach property owners, developers, or decision-makers in the construction industry. Target by location, interest, and demographics to ensure your ad reaches the right people.
Keep Track of Your Bid-Hit Ratio
Tracking your bid-hit ratio is crucial for understanding your bidding performance and identifying patterns that lead to success.
While specific bid-hit ratio benchmarks for residential construction are not extensively documented, industry averages for general contractors can offer a useful reference point. For instance, in private bid work, general contractors typically experience a bid-hit ratio ranging from 4:1 to 6:1, meaning they win one out of every four to six bids submitted.
Put Your Projects Into Groups
Organizing your projects into groups can help you see trends in what types of projects you’re winning.
- Public projects
- Private projects
- Types of buildings
- Trades required
- Locations of the projects
This helps keep you organized and allows you to track what types of projects you are bidding on and winning.
Calculate Your Success Ratio Per Group
By calculating the success rate of each group, you can gain insights into which project types are most successful for your business. This allows you to focus your efforts on the most profitable opportunities.
Prioritize Projects With the Highest Bid-Hit Ratio
Once you’ve identified the types of projects you win most often, prioritize these in your future bidding efforts. It’s about working smarter, not harder.
Visit Your Potential Clients In-Person
Building strong, personal relationships can give you a competitive edge in the bidding process. In-person visits demonstrate your commitment and professionalism.
People buy from people that they know, like and trust, which is why it’s important to meet with people in person and establish a connection.
Ideally, you want to meet with potential customers who have been referred to you by a previous customer or someone in your network. Here are a few ideas to help meet people in person and/or network:
Direct to Homeowners
Homeowners are often looking for trustworthy contractors. A face-to-face meeting allows you to showcase your expertise and provide a personal touch that sets you apart.
Property Managers
Property managers often oversee large construction projects and can be valuable long-term clients. Meeting with them in person can help you better understand their needs and build a lasting relationship.
Real Estate Agents
Real estate agents often work with contractors for renovation projects and new builds. Connecting with agents can help you stay in the loop about upcoming opportunities and market trends.
Follow-Up Frequently
“The fortune is in the follow-up” is one of those quotes that sticks with you in business.
One of the most overlooked strategies in winning bids is simply following up. After submitting a proposal, reach out regularly to check on the status of the bid. Persistent yet respectful follow-ups show your dedication and can keep you top-of-mind for decision-makers.
Find Out Who Else Is Bidding
Knowing your competition is essential to refining your approach and ensuring that your bid stands out.
Beating Your Competition on Price
While you never want to be the lowest bidder, it’s important to understand where your pricing stands relative to competitors. Ensure that your bid is competitive and offers value for money.
Beating Your Competition on Reviews and Reputation
A strong reputation can sway decision-makers. Showcase your positive reviews and testimonials to build trust with potential clients. Highlight past successful projects to stand out from the competition.
Beating Your Competition on Vision and Expertise
Clients are more likely to choose contractors who bring a unique vision and deep expertise. Focus on differentiating yourself by demonstrating how your experience and innovative ideas can bring added value to the project.
Have a Strong Online Presence
In today’s world, you must be online, which is why maintaining a strong online presence is essential for staying competitive.
Google My Business
If you don’t have a website or don’t know where to start, the first thing you need to do is get a Google My Business (GMB) profile. It’s free to sign-up and Google walks you through the process.
Optimize Your Website
Your website should be a reflection of your business’s professionalism and expertise. Ensure that it is easy to navigate, mobile-friendly, and optimized for search engines. Once you create one, don’t forget to add it to your GMB profile.
Importance of Reviews, Testimonials, and Examples
Showcase positive reviews, client testimonials, and examples of past work to build credibility. Include case studies or portfolio pieces that demonstrate the quality and variety of projects you’ve completed. ATX Custom Remodel does a great job of showcasing reviews and testimonials:
Other Helpful Resources (Blog, Link to Socials, FAQs)
A well-maintained blog and links to your social media accounts can provide additional avenues for potential clients to learn about your services. Offering useful content can also help position you as an authority in your field.
Keep a Social Media Presence
Being active on social media helps you connect with a broader audience. Share project updates, tips, and relevant industry news to stay visible and engaged with your followers.
Have Strong Contractor Branding
Strong branding makes your business memorable and differentiates you from competitors.
Create a Strong Digital Brand (Logo, Colors, etc.)
Ensure that your logo, colors, and design elements reflect the professionalism and quality of your services. A well-established digital brand helps build recognition and trust with clients.
Produce Compelling Assets (Business Cards, Shirts, etc.)
Branded business cards, shirts, and other assets can reinforce your brand’s identity. These assets can also serve as conversation starters when meeting potential clients in person. People love free swag. Take a cap or coffee cup to your customer after you complete the project.
Want to learn more about building your contractor brand? Check out this additional resource: https://www.handoff.ai/blog/building-your-brand-as-a-general-contractor
Show that Your Estimates Are Backed by Data and Technology
When submitting an estimate, it’s crucial to show that your pricing is backed by reliable data and advanced tools.
Importance of Accurate Estimates
Accurate estimates demonstrate professionalism and reduce the risk of costly errors. Clients appreciate contractors who provide clear, realistic expectations upfront. If you haven’t started using AI (Artificial Intelligence) for your estimates, then check out Handoff, which helps you create professional and accurate estimate in minutes.
Importance of Detailed Proposals
Provide detailed proposals that include a comprehensive breakdown of costs, timelines, and project scope. This transparency can help build trust and make your bid more attractive.
Importance of Technology-Driven Professionalism
Leveraging technology like Handoff for proposals and invoices streamlines your processes and helps you present yourself as a professional contractor. Clients will appreciate the clarity and precision that comes with technology-enhanced proposals.
Detailed Proposals, Clear Terms and Conditions, and Professional Contracts
Using a system like Handoff ensures your proposals are thorough and professional. Include clear terms and conditions, as well as detailed timelines and budgets.
Here’s an example of a bathroom remodel estimate:
Trustworthy Invoicing and Payments System
A reliable invoicing and payment system ensures that you get paid on time and that clients have a smooth experience working with you.
How To Win Every Contracting Bid…Every Time
Winning bids consistently requires a mix of strategy, relationships, and professionalism. By focusing on high-quality leads, leveraging your network, and using data-driven tools to create accurate, detailed proposals, you can position yourself as the contractor of choice.
Combine this with a strong online presence, compelling branding, and a commitment to personal connections, and you'll set yourself apart from the competition.
Remember, success in bidding isn’t just about winning the project—it’s about building lasting relationships and establishing a reputation that ensures ongoing opportunities. Implement these strategies, and you'll not only win more bids but also grow your business for the long term.
