Targeted proposals to general contractors.

Your company may boast the highest-quality product in your industry, but if you submit a substandard or poorly targeted proposal, you’ve just undermined that product and likely will not get the award.

Here are 10 common pitfalls to avoid when writing and submitting bids and proposals:

1. Using complex language. Keep your proposal simple to read and follow. Use clear, concise, easy-to-understand wording and avoid long-winded sentences and paragraphs.

2. Submitting a bid on contracts that will place your current working capital/ reputation at risk. All too often, businesses submit proposals or bids they can’t fully complete. When considering solicitations, make sure you possess the skills and resources required. Otherwise, you’ll scramble to meet the contract requirements while your other projects suffer.

4. Pricing an item in incorrect units. Experts say this is the most common mistake made in submitting a bid. A typical example is submitting a bid in gallons when the solicitation was for quarts. It may seem like a simple error, but it could cost you a contract.

5. Submitting messy bids. Just as you wouldn’t hand a coffee-stained business card to a potential client, you should not submit a proposal unprofessional in style or appearance. Before you seal the envelope, double-check your document for typos, blank pages, unnumbered or mis-numbered pages, smudges, rips and poor grammar.

6. Having preconceived notions about what specific contractors need. Don’t remove yourself from consideration by assuming a contractor doesn’t need your product or service. You never know: Turner Construction may, in fact, be looking for safety equipment. Contact the general contractor before you decide. Businesses are often pleasantly surprised by what GC’s need to buy.

7. Focusing on frills rather than fundamentals. Instead of trying to dazzle buyers with your marketing flair, concentrate on making your proposal or bid rejection-proof. Begin by responding to every requirement in the solicitation so that your proposal won’t be rejected for being non-responsive. Next, make sure your proposal offers a clear and well-thought-out solution that will solve the problem at hand while calling attention to the direct benefits of your product.

8. Not allowing enough time for preparation. With bids and proposals, the clock works against you from day one. Take into account the time you must check and recheck your documents, complete required forms and compliance matrices, and calculate the time and materials necessary to fulfill the contract. And don’t forget to allow enough time for your proposal to reach the agency office before the deadline.

9. Ignoring or underestimating your competitors. Differentiate yourself from your competitors in your proposal. How much more efficiently will you do the job? Why is your price better than theirs? What benefits will the general contractor receive if it works with your company instead of your competitor? If you haven’t taken time to study and understand your competitors, it’s unlikely that you’ll beat them for the contract.

10. Inconsistency. Is your work plan in agreement with your budget and schedule? Do your figures add up? Are you consistent with measurements and any other elements vital to your proposal?

Before you tackle construction bids, you must understand the procurement process. Every contractor buys a bit differently, which complicates life for vendors. However, because most contractors want to receive bids before they are awarded the contract from the owner during the pre-construction phase, you need to price projects based on the architectural drawings.

Here are two of the most basic procurement methods: Preconstruction bidding and post award bidding.

Preconstruction bidding.

Pre award bidding is typically used to create a budget for the general contractor to submit 1 price to the owner, so the general contractor can be awarded the building contract. There is a 30%-50% chance the GC will not be awarded the building contract during this phase. In these cases, general contractors are looking for the lowest price.

• An Invitation for Bids (IFB) is advertised.
• Companies prepare and submit their bids.
• An estimator opens all bids at an appointed time, reads them and records them.
• The estimator uses the most responsible, competitive bids to compile 1 total construction cost to the owner.
• The owner awards the contract to the general contractor company with the lowest bid.
• The general contractor then makes sure the lowest specialty subcontractor bidder is both responsive and responsible.

The process may seem straightforward, but compiling bids can be a tedious process.

Project In progress bidding.

General contractor’s rarely issue a contract until they are awarded the contract to build from the owner. Even though the GC loves to receive bids before advertised bid due date and appreciate the subcontractors that helped the GC quote the project.

Depending on the size and complexity of the project, negotiations may include a discussion of price, schedule, technical requirements, and the payment structure to be used.

What Type of Information you can include in a Winning Proposal?

• Company background.
• Qualifications and credentials.
• Personnel and prior experience.
• Project strategies.
• Work plan processes and tasks.
• Schedules
• Product specifications.
• Project staffing and resources.
• Subcontractors and partners.
• Fees and pricing.

How can my Subcontracting Business get winning construction Proposals?

General contractors don’t publish winning government proposals on their website. Your subcontracting business can tap into a winning proposal database from a construction information intelligence company. You can contact a construction bid management software who will work with you to find construction projects that best aligns to your specific contracting business.