Everyone running a construction business can identify with the challenge of finding time to cultivate, estimate and bid on new work. But, without a pipeline of incoming projects, the business obviously can’t grow. Here are some suggestions about forging forward.
Business owners face the challenge of balancing time between running the business, marketing the business and financing the business. Clearly, the capacity to win new business is essential for success, but building experts point out that most contractors have not developed a regular practice for bidding on jobs:
Bidding jobs can be very time-consuming, very fast. In fact, most contractors overlook this crucial aspect of their business simply because they have their schedules full.The average one-person contractor should be bidding no less than 20 jobs per month. And that number is higher if you’re a bigger, more established company.If the average contract value in construction is around $200k, and you win about 10% of your jobs, that means if you’re bidding 20, you should have 2 projects under your belt every single month.Theoretically. Unfortunately, the reality is many contractors get bogged down with work on the job site, overseeing workers, and other tasks so that they don’t have the time to bid out jobs and focus on their sales/marketing.
So what’s the solution? I Am Builders recommends: “Look into the top entrepreneurs in the world, they all have surprisingly similar philosophies; create systems for everything, delegate people to manage/work on those systems, and focus on sales. And if it’s working for every single successful entrepreneur, why wouldn’t you follow suit with your construction business?” In other words, make a plan and dedicate resources to ensure you are consistently bidding on new work. Experts suggest doing so through hiring an in-house estimator or outsourcing this function, and offer insights on the pluses and minuses of each approach here.
Don’t forget, Colonial Surety can help you grow your business too. Game change might even be just a few clicks away. Qualify for The Partnership Account® and you’ll have a surety line of credit—in writing—and a private digital dashboard. Use it to better leverage your financial data and take action accordingly. You’ll always have a snapshot of your single and aggregate limits and current and available bond capacity. Go ahead: update work on hand, increase your aggregate and move that next project forward. Make more possible, starting now: Pre-Qualify and Get Free Scores Here.
Get On The Bid List
Is there anything worse then finding out you weren’t even on the bid list of a former customer? Repeat business is necessary for growth. To that end, successful builders underscore the importance of making time for relationships: “Nothing is better than repeat business. It doesn’t take as much work to find or cultivate an existing customer as it does to find new customers. But it does take creating a brand that is known for its excellence and delivery of high-quality products. It is also critical to realize that customers have a relational bond with those from whom they procure services. We all know that we are on some bid lists and not others. Keeping your company in the mix is also about maintaining relationships as well as product delivery.”
Growing a business also requires following the action and right now for contractors that means keeping an eye on the flow of money for publicly funded builds and nonresidential builds. Let Colonial help get you winning more too. With The Partnership Account® , contractors are positioned to stack up wins. In addition to a surety line of credit—in writing, The Partnership Account® gives qualified construction companies:
- Control of bidding and bonding, online and in real time.
- Powers of attorney to seal and issue their own bid bonds—in minutes.
- Fast, direct, confidential bid bonds—no middleman.
- Direct access to performance and payment bonds on a customized dashboard.
- Real time tracking of bids and work on hand.
- Immediate access to Colonial’s lead underwriter as new opportunities emerge.
- A private Owner’s Dashboard to view surety lines, adjust work and analyze bids.
Get Growing: Pre-Qualify and Get Free Scores Here.
Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed.