If you’re running a construction company, chances are you’ve already thought about construction bidding for municipal projects. But do you know how to prepare a bid that the municipality simply can’t refuse?
The public bidding process for construction projects is complicated and requires thorough preparation and strict legal compliance.
What does this mean for construction companies hoping to win municipal construction projects? That you should get well-acquainted with the bidding process and the intricacies of presenting a winning bid. When you’re taking part in a public bidding, keep these four important tips in mind:
1. Choose projects carefully and know who the decision makers are
Do your homework in advance and research your nearby construction marketplace. Check the volume and location of bidding projects and find the best market niche in which your business can fit and thrive. This way, you’ll only bid only on suitable projects.
Part of winning the bid is making sure you win the votes. So it’s a great idea to identify the decision makers voting on behalf of the municipality.
Know who is legally entitled to evaluate your bid. Not all parties have the authority to make decisions on competitive bidding. To avoid disappointment, focus on convincing those who have the right to reject your project.
2. Be the Lowest and Best bidder
The main principle that guides the municipality’s decision is the “lowest and best” standard. It’s not enough to offer lowest priced bid. You also need to match every requirement and demonstrate your advantage over your competitors by adding extra value to the project.
Included in the municipality’s evaluation are criteria such as your business’ financial status, company size, and the professional experience of your employees and of the company as a whole. Carefully presenting your company strengths is crucial to matching the bidding standard of municipalities.
3. Hire a construction CPA
A construction Certified Public Accountant (CPA) firm is not simply a general accounting firm. Its employees are trained to deal specifically with construction companies’ finances.
Since contractors’ accountancy is rather complex, hiring a construction CPA for your bidding process is important. It will ensure your own security and your compliance with legal requirements. Moreover, a qualified construction CPA can be more than an accountant for your company – they can provide a much needed business consultation, as well.
4. Get adequate information about the surety bond requirements
Bidding on public projects involves obtaining a surety bond to accompany your offer. More precisely, municipalities require a bid bond. This is a guarantee that in case you win the project, you will obtain the required construction surety bonds, namely performance and payment bonds.
To get detailed information about the necessary surety bonds for your bid and, should you win, for your project, just call us at (888) 592-6631 or contact us online. Our contract bond experts will help you get bonded fast and at the lowest possible rate.