25 50 45 69 96 75 76 77 64 16
Assess the
45
Situation
69 75 80
Bid first .
15 28 45 12
We all know how important backlog is to a Among the easiest ways to win more bids is to submit construction business . Having a healthy amount of work scheduled but not yet started is a key indicator of
20 28 29 50 55 56 32 37 91
on projects in the pipeline , tap into your professional financial strength . A diminished backlog , on the other hand , implies the contractor is running out of work .
49 68 50 97 56 32 37 91 49
The fact that backlogs are falling industrywide indicates that fewer projects are coming to market . Many contractors may respond by bidding on more
15 25 50 45 69
When competition
75 for projects
80
heats up
15
, some
16 projects than usual or bidding on those outside their contractors feel pressured to bid on every job they normal scope of work . With more contractors vying for the same projects , some may feel forced to bid jobs
25 89 97 36 45 12 20 28 29
at lower margins , which in turn negatively impacts that you have a high chance of winning and that will profitability .
50
Build Backlog
55 56 32 37 91 49 68 27
Avoid projects outside of your niche or in locations where you won ’ t have the workforce or resources to It ’ s possible to maintain or even grow your backlog in a slowly recovering economy without lowballing bids .
18 61 98 99 72 32 21 28 45
Here are a few strategies to consider : you ’ re awarded the work .
Watch market conditions . To get on the right bid lists , pay attention to
25 50 45 69 96
As the pandemic
75
continues
76
impacting construction
77 64
construction backlog in the regions or sectors in which jobs , count on Doeren Mayhew ’ s dedicated you typically work or could work . Doing so will shed light on where demand is high and which market
16 45 69 75 80 15 28 45 12 our construction CPAs today for assistance . ■ sectors are healthy .
20
Explore diversification 28
.
29 50 55 56 32 37 91 Look into the feasibility of diversifying the construction services your company offers . This is , of course , not a
risk-free strategy . You may need to bring in new talent
49 68 50 97 56 32 37 91 49
or invest in additional equipment .
Focus on relationships . Regular communication is key to keeping relationships
15 25 50 45 69 75 80 15 16
fresh with partners and those who make important decisions on potential jobs . Key contacts can include general contractors ( especially if you ’ re a
25 89 97 36 45 12 20 28 29
subcontractor ), consultants , architects and engineers , and developers .
50 55 56 32 37 91 49 68 27
Sell your unique value proposition . Identify what you do better than anyone else . First and foremost , promote your approach to the safety
18 61 98 99 72 32 21 28 45
of your workers and the general public — including measures taken to prevent the spread of COVID-19 . Plug other demonstrable advantages of your business ,
25 50 45 69 96 75 76 77 64
such as stellar customer service , niche expertise and experience , and speed of work . first . This way , your proposal becomes the standard against which others are compared . To get early leads
networks regularly and visit online construction bidding marketplaces .
Don ’ t Just Survive , Thrive
can find , just to have work and keep staff on board . However , your company should bid only on projects
likely be profitable .
feasibly fulfill the requirements . Above all , avoid the temptation to bid too low and potentially lose money if
Construction Group to guide you through managing business disruptions and financial controls . Contact
16 45 69 75 80 15 28 45 12
Issue 2 | 2021 VIEWpoint 5