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The Bid Selection Process

Project owners commonly invite construction managers to bid on their construction projects, so it’s important to understand the types of construction bids and how the bid selection process works.

Open Bids versus Closed Bids

In open bidding, all companies in the construction business are invited to bid. Open-bid projects are widely advertised on sites like BidScope to encourage maximum participation.

If bidding is closed, project owners invite only select companies to participate in the bid, often notifying those companies through a service like ONETEAM.build. In essence, the process is streamlined in a way that places an emphasis on the qualifications and relevance of the construction manager.

There are multiple things the project owner considers before awarding the project. In particular, the construction manager’s qualifications and their bid amounts receive disproportionate importance.

Bid Selection Process

A project owner considers several factors before awarding a project, and these factors are not always equally weighted. These are project owners’ typical approaches to selecting bids:

  • Exclusive focus on the bid. The manager with the lowest bid wins the contract. This focuses less on qualifications and can be favorable for startups and inexperienced companies that bid.
  • Exclusive focus on the Qualifications.This rules out most emerging companies and provides the best odds for those companies well established in the construction business. It is almost impossible for new construction companies to compete in this case.
  • Best Case Selection. The project owner gives equal weight to the construction manager’s qualifications and the bid itself.

Although you cannot control which credentials a project owner takes into consideration while reviewing bids, you should ensure that your company gets the greatest exposure. One web site, ProView helps you get your qualifications noticed. Not only does ProView list your qualifications in chronological order but it presents the company’s history in the form of a story, which adds value and authenticity

The Key to Success

The route to successful contracts often differs among project owners, and there’s no single most appropriate way to get noticed; however, if you focus on keeping your clients happy and offering the best of your capabilities, you’ll worry less about contracts, because they’ll naturally come to you! Quality and dedication go a long way toward building a profitable long-term relationship with construction partners.

Performance, reputation and services go a long way in providing a sustainable competitive edge when contrasted against the bid value. Most project owners understand it’s risky to trust a relatively unknown or unproven construction manager just because the company submitted the lowest bid. So, invest in building your reputation in addition to your qualifications. Perhaps advertising or even consider working with a public relations agency. It really makes the difference!