How to Win More Construction Bids in 2024

To the industrious builders and construction professionals, securing lucrative projects is not just a goal—it’s a necessity for business growth. The construction industry is competitive, which means learning how to get construction contracts is essential, but it can be daunting. 

In this guide, we’ll explore strategic insights and practical tips on how to maximize your success in the construction bidding process. From becoming a bonded contractor to choosing jobs more selectively, here’s how to get construction contracts in 2024. 

Be Intentional With Bid Proposals

As a general contractor who runs your own business, it can be tempting to bid on every contract that comes your way—but you shouldn’t. 

When you bid on construction jobs, being overzealous can compromise the quality of your proposals and reduce your chances of winning a contract. Instead, you should focus on bidding on construction jobs that you’re likely to win. 

Tailor each proposal to the specific requirements of the project, addressing client concerns and showcasing a deep understanding of their needs. A well-articulated bid not only sets you apart but instills confidence in clients, increasing your chances of winning.

Build a Network to Generate Quality Leads

When learning how to get construction contracts, one of the most important things to focus on is the value of building connections. 

Networking as a contractor will not only open doors to new construction project opportunities but also provide insights into upcoming projects. Cultivate relationships with architects, engineers, suppliers, and other industry professionals. Attend industry events, join associations, and participate in online forums to expand your network.

Building a robust network enhances your visibility, establishes your credibility, and may lead to valuable referrals, increasing your chances of winning construction contracts.

Develop a Competitive Pricing Strategy

When you bid on construction jobs, it’s important that your bids are both competitive and accurate—this shows you’ve done your homework. 

A competitive rate will ensure you’re not priced out by the competition. However, accuracy, as it pertains to labour, equipment, and material costs, will show that you’ve taken the time to dive into the details of the job, something which earns you points with the client. Inaccurate estimates in these areas often lead to avoidable yet costly delays. While it may be tempting to over-bid just to get the job, that can lead to serious financial consequences down the road. 

Instead, consider adding value-added services or innovative solutions that set your bid apart from others. Striking the right balance between affordability and quality positions your bid favourably in the eyes of clients, making it more likely to stand out and be chosen for the project.

Showcase Your Expertise With a Portfolio of Work

With that being said, bidding in construction rarely comes to just dollars and cents. 

When awarding a project, owners are looking for a company that has a proven track record of success. A great price means nothing if the work is subpar, or worse, won’t get completed properly and/or on time. You need to build a contracting portfolio that inspires confidence and gets people excited about your work. 

If you want to win a construction contract, ensure you’re putting forth a portfolio of work that builds your case. A record of successful past projects goes a long way. 

Work a Referral System With Your Existing Clients

Retaining professional relationships with your existing clients goes hand-in-hand with learning how to get construction contracts. 

Keep in touch with project owners, general contractors, or relevant stakeholders in the construction industry even after the end of a successful project. Your previous clients can serve as a bridge to future business opportunities if you treat them right.

One option is to work out a referral system that rewards both your clients and the referral. Offering a discount on your new client’s project cost or providing your referring client with adjusted pricing for future partnerships are just some of the ways you can get more construction project opportunities.

Track Your Bid-Hit Ratio

The “bid-hit ratio” is the rate at which you successfully bid on construction jobs and is often a good indicator of the effectiveness of your bid proposal. 

Here’s an example: having a 5:1 ratio shows that for every five bids, one job is awarded to you. Understanding your bid-hit ratio will allow you to pool your efforts into bidding for construction projects that you have a high chance of winning. 

Consider sorting the projects you’ve bid on into specific categories, such as private and government contracts, type of work, site location, contract size, and construction type, and analyze the results to maximize your bidding efforts. 

Invest in Risk Mitigation Strategies

Having a risk management strategy in place matters, especially when you bid on construction jobs—covering your bases opens doors.

It shows you’ve done your research, identified the risks involved, as well as potential causes for claims, and properly evaluated them. It also signals to your client that you are capable of shouldering the expenses of the construction project.

Surety bonds are one of the best ways to do this. They build your credibility by protecting your client from financial risks, accidents, work that falls below industry standards, or delays that violate the terms of the agreed-upon project contract.

As a result, contractors with surety bonds are often more competitive in the bidding process, opening doors to a wider range of new projects and fostering trust among potential clients. 

Build a Competitive Edge With Contractors Insurance

Bid on construction jobs with confidence. Whether you already have core strategies in place or you’re still wondering how to get construction contracts that meaningfully grow your business, investing in bonds and insurance is a great place to start. 

Contractors Insurance is the top insurance provider for construction contractors in Ontario, offering customized insurance and surety bond solutions. Our experienced brokers provide bundles that cover your needs—with no unnecessary riders.

Speak to our surety bond experts to learn more about how we can help with your construction bidding strategy.