My Year Analyzing Construction Bids: 5 Things I Learned - Part 1
After spending 12 months embedded with RhinoDox clients analyzing construction bidding practices, clients consistently expressed regret about not adopting data-driven bid management earlier. This post covers the first two of five key lessons learned.
1) Bid History Matters
Construction professionals traditionally rely on experience and intuition when deciding which bids warrant estimation effort. However, analyzing bid history data revealed surprising patterns:
- One contractor bid 20 jobs totaling $20M+ with a single general contractor but won none, enabling them to have data-driven conversations about their performance
- Reviewing historical data helped another client identify a general contractor relationship that had gone dormant after two quarters due to a personnel change
- An estimator's zero-win record with a particular client explained why colleagues avoided bidding that company
Key insight: Historical bid data enables contractors to strategically allocate their finite estimating resources.
2) There are FORTUNES in Follow-up!
A large general contractor's leadership emphasized that while pricing matters initially, responsive follow-up and problem-solving directly influence award rates. Being proactive in supporting the decision-making process positions subcontractors competitively.
Manual tracking systems like spreadsheets create inconsistencies and delays in bid status visibility, hindering timely follow-up efforts. Improved visibility supports better prioritization of follow-up activities.
Stay tuned for the remaining three lessons in upcoming posts.