NFIB

Tips for Bidding a Project
04/ 02/ 2002


When you're bidding on a project or a long-term situation, you may be in competition with up to three or four other firms. And even worse, one of your competitors may have a firm that's already been doing the job for some time. In today's Workshop, contributor Jeff Moses gives some tips to help maximize your bidding efforts.

If your company is relatively new, you might consider offering a low bid to get your foot in the door. But be careful, if you win the bid at a low price you'll be stuck working for less than you would like, perhaps for a long period. In almost all circumstances, it's best to put in a realistic bid so that if you win the job, you'll be able to make a decent rate.

Gather as much information about the work as you can before making the bid. When projecting how much time a project will take, and how much effort will be involved, remember that things hardly ever go quicker than estimated. And the company you're working for will almost always add "just a little" to the workload, expecting you to graciously undertake the added work at no extra charge.

If you're not bidding on an entirely new project, ask to see detailed records of how much the company has previously been paying for the work, and how much work has been involved. This is established practice among many companies that are experienced in bidding. The company may balk at supplying this information, but be a little insistent, telling them that it will help you establish a more accurate time and cost estimate.

If a company is reluctant to give you any information, and your personal contacts at the company hardly want to talk with you when you call, it could be that the company doesn't really want to work with you. Sometimes, when a company has a firm that has already been doing the work, they just put a bid out once in a while to see whether the existing firm's pricing is still in line. In such a case, they're using you (and your valuable time) simply as a benchmark, and you won't get the job in any case.

Always remember that whenever a company puts something out to bid, they have a need that they're looking to fill. In every letter you send and at every interview you have with company representatives, let them know that you and your company are the "solution" to that need. Tell them that you can "make life easier" for them. You can "take responsibility" and "lift the burden from their shoulders." This is, in essence, what most people are looking for. The more clearly you present yourself as a problem solver, the better the chance you'll win the bid, even if your price isn't the lowest.

Always meet as many people as possible at the company during the bidding process. If you've been assigned to speak with one person, ask if there are other individuals also involved in the decision process. Suggest that you all meet, so that you can address all concerns at once, making their decision easier. This may not be possible, but it might help put you in contact with someone who sees things from a slightly different viewpoint -- a viewpoint from which your company would look better than any of the competition.

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