Contractors are spending up to 22% of their operational turnover bidding for work, with a win ratio of 1 in 5, according to the new research by MarketingWorks (supported by Reading University).
For smaller projects (less than £5m), the proportion of bid cost to project value is highest, meaning the win ration is crucial for companies looking to avoid problem jobs and determining whether to bid schemes in the first place. The average bid cost across both winning and losing bids was 0.57% of the total project value
One person who responded to the survey commented " if you make one mistake pricing a job, even a small works package, you can lose a huge sum of money"
The report also talks about contractors outsourcing a lot of their tendering packages and having issues with subcontractor responding and managing the tender process. Contractors are now having to spend more time on a bid to win the project than they were previously. The average number of hours winning firms spent on each bid was 483 compared to 332 hours losing firms spent on each bid.
At Causeway our mission is to help contractors Price Work.....Win Work.....Manage Work. With our integrated take-off and estimating solution we can help with some of the issues that the University of Reading and Marketing Works found in their study. We help contractors speed up the estimating process with a very easy to use and intuitive estimating tool. The ability to import directly from excel, price up bills, find and re-use historical information helps contractors to spend more time mitigating risk by using our tender adjudication process. Also with our sub-contractor tender process, we help improve relationships between contractors and sub-contractors, helping you understand who in your supply chain is or isn't responding to your enquiries, helping you understand who is winning work and helping you build stronger work partnerships.
Remember the quote earlier in this post " if you make one mistake pricing a job, even a small works package, you can lose a huge sum of money", using Causeway Estimating we help reduce errors and have helped customers price more tenders, increase margins and increase turnover
To learn More...
We are currently running a monthly webinar, on which you can learn about:
- How Causeway Estimating is the leading product in the UK and how easy to use it is
- Our integrated take-off and estimating process
- How we can save you a significant amount of time giving you the opportunity to price more work
- How using our tender adjudication process can mitigate risk and help increase margins
If you wish to register for a place on our free webinar then please click here to register your interest.
For more information please contact our Business Development Executive Franco Iannaccone on 01628 552119 or email [email protected]