Last week we completed another Lump Sum Bid for one of our Clients. The jury is still out on this one, but the process was enjoyable-not stressful for all involved.

Over the years we have developed a very efficient (turn-key) system. Core Services Inc is unique, and we appreciate the fact that our Clients trust and utilize this experience to Bid Work and thus Increase their Sales.

Because of our over 35 years of experience in this arena, we:

• Have a high success rate of project wins
• Acquire several bids in all trades.
• Receiving bids that are complete, and consistent with Our scope of work.
• Write Detailed Trade Scopes that Reduce Risk, and expedite future writing of subcontracts

A BIDDING SYSTEM THAT SAVES TIME AND MONEY

At Core, we have developed a system, which has been perfected over the years to be extremely successful and cost effective.

Here are a few steps that we use to maximize results:

1. Win Strategy – Kickoff Meeting: Before you jump in and start the process of bidding a new project, you need to evaluate whether a project is worth pursuing. Because everyone is so busy, and it is impossible to get people together to make a Go/No-Go decision, the lead estimator needs to gather the pertinent information and forward it to senior management. We’ve found that the best vehicle for this is our Win Strategy Form. There are certain items that need to be evaluated, before time and money are expended chasing a bid “opportunity”.
   1. How will we win this job?
   2. Who are our competitors?
   3. What are the major trade battles we must win, to win the war?
   4. Our advantage is . . . ? Our disadvantage is . . . ?
   5. How do we expand on our advantages, and overcome any disadvantages?
   6. Realizing that sometimes, the best strategy is to pass.
2. Modern Tools: Although the general methods we use to produce successful results are not new to most, we take advantage of modern software and applications to minimize hours spent on tedious tasks, and maximize results.
   • Utilization of modern Document Distribution & Communication Applications will simplify and streamline the process of:
     • Distribution of Documents
     • Correspondence with Bidders, and recording of all correspondence
     • Quick tracking of Bidder’s engagement, downloads, etc., allows for immediate reaction if necessary to insure engagement.
3. Team Approach: Our team is organized so that each member of our small team knows their role, and understands what they need to do for a successful outcome. It starts with setting up the project and communicating with the team, the overall project parameters so they can communicate properly with subcontractors and suppliers. 
   
   *Note: We can’t over-emphasize the importance of followup calls to Subcontractors during the bid period. The calls need to come from someone familiar with the job and the trade work.
   
4. The Importance of Proper Subcontractor Engagement: Of course, a high level of subcontractor involvement is paramount to making sure you have a competitive bid.
   • We strongly believe that having the Right Contractors bidding is more important than having many contractors(quality vs quantity).
   • Making sure that not just your “favorite” subs are bidding to you.
   • Followup calls and steady communication during the bid period will keep bidders engaged, and let them know that you are serious about winning, and not merely going through the paces. 
   • Written scopes of work, distributed to subcontractors during the bid period make sure subcontractor’s bids are complete, they understand the work the way you do, and can flag any inconsistencies, early, so issues don’t appear in the eleventh hour.
     
     *Note: If you have a habit of awarding work that you win to your favorite subcontractors, you are going to have a difficult time being competitive in the lump sum arena. It is understood that you prefer to award to contractors you feel comfortable with, . . but eventually, the word gets out that you award work only to your Favorites. If this is the case, on bid day a few things will happen:
     • Subcontractors that you have been speaking to during the bid period, will not provide a bid on bid day.
     • Subcontractors WILL provide a bid, but it will not be competitive, and can do more harm than good.
     • Subcontractors will provide a low bid, but leave out scope to keep their number low. These quotes purposely lack any kind of detail and exclusions.
     • Another result of awarding work to Favorites is, that the Favorites will often increase their profit margins when they bid to you, knowing that they are going to get the work. Eventually, you are unable to be competitive with the same subs who previously helped you get the wins.
       
       Subcontractor lists constantly need to refreshed with new blood. Modern Bid Distribution Applications help us to do this.

SUMMARY: The above-listed items are a few of the ways we maximize results for every Lump Sum Bid. Core Services prides itself in maintaining accurate construction cost data by taking the cost info received during our Lump Sum Bids and regularly applying this information to our estimating cost database. This results in the highest level of accuracy possible for each new project that we estimate, and results in a Win for our Clients and a Win for Core.

Let us show you how we apply our expertise to make your next project a successful one. Call or email me now to schedule a brief call to discuss how we can be an asset to your Estimating Team.