Why Contractors Often Fail to Win More Projects

Contractors are losing bids because of this common pitfall

In today's competitive construction industry, contractors, especially smaller subcontractors, face an uphill battle in securing bids. Jerry Aliberti sheds light on this prevalent issue in this recent video. By identifying the core reasons why many contractors lose bids and offering actionable strategies to rectify these issues, this article aims to help contractors improve their bid success rate.

The Hidden Cost of Poor Follow-Up

One of the most glaring reasons contractors lose bids is due to inadequate follow-up. Jerry Aliberti emphasizes that contractors often put in immense effort to craft detailed and competitive bids, only to let the entire process fall apart due to ineffective post-submission communication.

Junior Employees as Points of Contact

A common mistake highlighted by Jerry is allowing junior employees to handle follow-up communications. When a General Contractor (GC) or developer has questions about a proposal, they typically expect to speak with someone who has the authority and knowledge to make decisions on the spot. Junior employees often cannot answer these crucial questions, leading to a breakdown in communication and opportunity loss. Remember, GCs are sometimes dealing with dozens, even hundreds of proposals on very large projects. These proposals are submitted just prior to the due date so they need to make every phone call count. They'll most likely forget themselves to follow up with you!

The Importance of Direct Communication

Direct communication from someone who holds decision-making authority, like the owner or a senior estimator, can make or break a deal. According to Jerry, this not only answers pressing questions in real-time but also ensures that the follow-up is taken seriously by the prospective client. It eliminates unnecessary steps and minimizes the risk of miscommunication.

The Dangers of Disorganization

Another major issue contributing to lost bids is internal disorganization. When tasks like follow-ups are assigned haphazardly or postponed, it can lead to significant losses.

Task Management and Delegation

Many small contractors are often stretched thin, juggling multiple roles. As a result, crucial tasks may slip through the cracks. Jerry Aliberti suggests implementing a robust internal system to ensure that follow-up tasks are neither forgotten nor delayed. Assign designated roles and responsibilities, perhaps through a project management tool, to streamline this process.

Timeliness and Consistency

Missing a follow-up call by even a day or two can sometimes mean losing a bid. A consistent, timely follow-up schedule shows the potential client that you are committed and professional. Jerry points out that the bid process must go seamlessly from A to B to C, without unnecessary delays or missteps. Closing on your next project is crucial for sustainable growth and revenue.

Building Personal Relationships

For smaller contractors still building their reputation, personal relationships can go a long way in securing bids. The larger contractors and developers may not be familiar with smaller players in the industry, making it even more critical to establish trust and rapport.

Face-to-Face Meetings

Whenever possible, contractors should aim to meet with GCs or developers in person. Jerry notes that sitting down to discuss a proposal can provide a unique opportunity to clarify any questions immediately, demonstrate professionalism, and establish a personal connection.

Ongoing Engagement

Building a relationship doesn’t stop at a single meeting. Continuous engagement, such as periodic updates, holiday greetings, or invitations to view other projects, can keep your firm top-of-mind for future projects.

Understanding the Scope and Requirements

Being intimately familiar with the scope of work, inclusions, exclusions, and all other details of the proposal is essential. This understanding should not be limited to the person preparing the bid but should extend to anyone responsible for follow-up.

Training and Knowledge Transfer

Jerry emphasizes the importance of training and knowledge transfer within your organization. Ensure that senior team members who understand the proposal’s full context are involved in the follow-up process. This also entails cross-training junior staff to ensure they can assist more effectively.

Answering Critical Questions

Potential clients often have specific questions about unique aspects of the scope of work. Being prepared to answer these questions promptly can be a deciding factor in winning a bid.

In summary, to enhance your success in winning bids, contractors must focus on improving their follow-up processes, ensuring organizational efficiency, building personal relationships with potential clients, and deeply understanding their proposal details. By tackling these areas head-on, as highlighted by Jerry Aliberti in this Pro-Accel podcast, contractors can turn their bid submission process from a weak link into a competitive strength.

Taking these steps can significantly increase the likelihood of not only being in the top three but actually securing the projects that drive business growth.

For a Free Consultation to discuss your current challenges email Jerry Aliberti at jerry@pro-accel.com or click on the link below and schedule a call directly.

For more information on how Pro-Accel can help you revamp your estimating department, check out our services here.