Consider These 3 Factors When Reflecting on Past Bids
Is your construction business going through a dry spell? Can you recall the last time you were awarded a competitive bid? Sometimes, contractors need to take a step back and ask themselves: “How’s our bidding?” Nobody wants to admit that their processes need improvement, but the construction industry is changing, and it’s the contractors with the greatest ability to adapt that will ultimately come out on top.
Everytime you lose a bid, you should take the opportunity to figure out what went wrong. During this post-bid analysis, you should focus on your approach, vendor selection, and general conditions to see how you can improve your process to obtain the next lucrative bid that pops up on your radar. Furthermore, you should conduct an audit of the competitor’s bid that was awarded to see what lessons can be learned about successful bidding, assuming you have access to this information and aren’t crossing any legal or ethical lines.
In this article, a Memphis construction attorney from Cotney Attorneys & Consultants will focus on these three factors and how contractors can improve their bidding strategy. Next time you need representation during the bid process or wish to protest a bid you believe was awarded unfairly, consult a Memphis construction attorney.
Examining your intended approach to a project can help reveal shortcomings in your bid strategy. Depending on the type of project you intend to take on, your approach will differ significantly. For instance, a project involving a mass excavation will require starkly different considerations than one involving the construction of a bridge. Similarly, you want to ensure that your bid proposes the use of efficient methods that will reduce costs and expedite timelines. If your proposed approach seems outdated, inefficient, or simply ill-suited for the proposed project, there’s little chance of your company being awarded a bid.
Comparing and contrasting your vendor selection with that of the competitor that won a bid is an effective strategy for seeing where you went wrong. All it takes is a couple drive-by inspections to see which vendors and trade partners are being incorporated into a project. Keep an eye on the type of trucks located on the project site and the names attached to them. Are these vendors amateurs or veterans? Gathering this information and analyzing it can help you make superior choices on your next bid.
If you have access to your competitor’s bid tabulation, you can work backwards to ascertain how funds were allocated. This allows you to identify which price points you can and cannot meet, which gives you insight into which areas of your business need to change (especially in regards to subcontractor fees). It takes a little guesswork, but it’s worth the effort if it can help you discover how your competitors are reducing their costs.
If you would like to speak with one of our Memphis construction attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.