How To Write a Bid

Having the skills to do a job doesn't always mean you have the knowledge to successfully pursue the project or convince the client that you are the best choice.You need to learn how to write an effective bid to succeed.There are a number of variables that need to be considered when making a bid for any kind of project, whether it is for a construction job or a company's marketing plan.One needs to consider equipment and supplies required, time spent working on the job, and any expenses that will be incurred in order to put together a realistic bid.

Step 1: Ask for references from your client.

If the potential client is a good credit risk, you should request payment up front.If you discover that the client has a history of not paying his bills, do not bid the job.It will be a waste of time.

Step 2: Determine what kind of work is required.

Take a look at the working conditions or space.Determine the difficulty of the work.Some jobs are not worth the time it takes to write a bid if the work is time consuming and difficult to complete.Try to find out if you have a chance of being the winning bidder.If you know that a company that consistently underbids just to win a job is bidding, it's a good idea to spend some time writing up the bid.

Step 3: Discuss all aspects of the job with the potential client.

The final product should reflect expectations and details.The current condition of anything you'll be working on should be reviewed.Check the condition of the porch before you write the bid.Request the current branding and positioning statement from the company you're consulting with.When bidding on a job, it is always wise to have a physical inspection of the site.

Step 4: Check for requirements.

A Request for Proposal is a document prepared by some companies for the job and bid process.The requirements should be followed exactly.These are common for government contracts.

Step 5: All supplies and expenses should be calculated.

If you don't know what the job entails, add up all the supplies needed, other expenses, labor costs and the amount of time you expect to spend on it.Any materials needed for the job are included in supplies.Expenses include travel, lodging, meal, and equipment rental fees.Minimum pay for labor may be required by some companies.The cost of the windows, wood for the frames, and the number of workers needed to complete the job would all be included in the bid.If extensive repair work is required for the window frames, a carpenter might be hired.How many days will it take to complete the job?

Step 6: All information should be reviewed.

Add it now if you notice that you missed something.Make sure you are making a profit from the job and that all expenses, including overhead costs, are calculated into the bid.Business expenses are not related to labor or materials.No matter what the volume of your business is, overhead expenses must be paid.Insurance, rent and utilities can be included.You risk not making a profit on the job if you don't build overhead into the bid.A portion of the salary of an administrative assistant, rent or mortgage for office space, worker's compensation insurance and cost of utilities are included in the new windows bid.These expenses are usually built into the retail price of the windows.Don't forget to include them in your bid.The contingency budget should always be equal to 10% of the total estimated cost.

Step 7: Write your proposal.

Line-item form should be used for cost information so that your client knows what the bid includes.Limit hours of work, specific safety requirements, etc., and specify any limitations, exclusions or stipulations for the bid.Your contact information, company name and payment requirements should be on the proposal.You should include a list of references in your bid.It could look like this: Windows in A Day, Inc. 400 South St, Pittsfield, MA 800-222-5512Windows in A Day will dispose of existing windows upon completion of the job.Work is guaranteed for 10 years.We have certificates that can be used for inspection.Payment is due a week after the job is done.Every week, a 1% service fee will be added.Edward Lang and John Smith are references.

Step 8: Print and submit your proposal.

This should be printed on company stationery with your logo or type in your company name and address.It is important that your bid looks professional and accurate.Before printing the final copies, you should proofread it several times.Keep one for your file if you present your potential client with two copies.If one was provided, read the business's RFP again.Check to see if your bid meets the requirements.You need to submit the bid before the deadline.It would be a shame to lose the bid because you were late.It is possible to get a receipt from the potential client stating when your bid was received.

Step 9: If you want former clients to recommend you, ask them.

A former client might be willing to call the decision maker for your current bid if they were very pleased with your work.You could ask a former client to post a review on an online site.If they are for similar work, you should include them in your bid.

Step 10: Follow directions and requirements.

If you are writing a response to a Request for Proposal, be sure to answer all the questions in the document.In addition to references, most proposals include an executive summary, a documented explanation of work done in the bid proposal, and other contractual information that makes it more specific than just a bid.Windows in a Day, Inc. has been selling and installing top quality windows in both commercial and residential properties for the past 20 years.The work will last for 10 years.There are 20 windows at 100 Main St in Anytown, MA.Current windows should be removed and thrown away.Fix the rotted wood along the window frames.

Step 11: Analyse failures and successes.

Look for trends and keep track of bids that have been won in the past.Maybe you won more with small businesses, the bid amounts were relatively small, or they were long vs. short term projects.Also find out why you are losing.

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