Tracking Bid-Win Rates for Commercial Construction is important for any contractor.
Creating winning proposals crucial for survival, however each proposal is also a signifcant drain on resources. Actively tracking the bid win rate and understanding how to identify areas for improvement and strategizing need to be priority areas of focus.
What is your Bid Win ratio? What is considered good?
The right bid-hit-win ratio is up to your organization. Some say that a reasonable ratio for public sector commerical construction (repair, renovation, maintenance, or new build) should be at most 10 to 1. Higher than 11-to-1 will cost your company too much in estimating expenses and will not provide a reasonable profit. I recommend you strive for a 4-to-1 ratio or less for private work.Higher than 11-to-1 will cost your company too much in estimating expenses and will not provide a reasonable profit. I recommend you strive for a 4-to-1 ratio or less for private work.
Key Factors to Consider to Consider When Bidding
- Number of competitors
- Your mark-up
- Project location
- Project type
- Project size
- Subcontractors or suppliers
- Contract type—bid versus negotiated
- Customer relationships