Hey, that sure was a nice low number. In fact, it won the bid. Hmm…now you just have to figure out exactly how you got to that calculation. What if you left margins and profits on the table? What if you are actually going to have to cover expenses yourself? Sounds like it’s time to get more actionable data at your fingertips…..
Better Data: Models and Two Dimensional Plans
Digitalization, strategically managed, leads to better bids, and ultimately better business, as David Swider explains at Construction Business Owner:
As a contractor, while your bidding scenario may change, ultimately, you will be faced with the underlying questions, “Where did we get that number?” and, “How confident are we in our number?” The simple truth is that if companies do not have the necessary tools and access to critical cost and productivity data, they are at great risk of missing the schedule and coming in over budget.So, how can you instill confidence in those numbers?….The deeper an organization is able to drive the digitalization of…actionable data throughout its projects, the more impactful and transformative the outcomes will be.….An underlying challenge is figuring out how to digitize the data that helps contractors better deliver on owner projects and, in turn, have owners better manage their risk. Further, is how to realize far greater levels of project certainty for both. One way is to start with models or digital, two-dimensional plans.
When assessing digital possibilities for improving the data available for decision-making in real time, it’s important to identify “tools that enable the transfer of quantities and materials from the plans directly to a schedule of values or an estimate. More robust tools go the extra mile and aim to standardize the data or make the transfer automatic, without the need for an import/export process in between.” Although digitizing requires effort and investment, the payoff, in terms of more accurate estimates, and stronger plans, is very likely to be well worth the cost:
Consider how much more certain project outcomes would be if you could leverage actual past performance numbers to inform the planning and estimating of your next project. Having access to digitalized performance and quantity data provides critical visibility to help ensure your project stays on track and on budget. If you are waiting for numbers to come from your accounting system at month-end, you are looking in your rearview mirror, and changes now have diminished impact. However, when you’re armed with near real-time numbers, you can start calculating your earned value and track true contractor quantities. Consider the process of quality and compliance as well … .Without a digital trail to help manage critical commissioning activities, such as mechanical completions, punch lists and walkdowns, the entire process occurs again and, often, with missing pieces.
Always Be Closing
As important as digitizing and bidding methodically is, successful bidding alone will not necessarily position your business for growth. At Well Built Construction Consulting, Chad Prinkey reminds us that a consistent, documented and methodical approach to marketing and sales is vital to attracting and winning new projects. According to Prinkey, a solid sales process should arm you to:
- Quickly evaluate and separate the wheat from the chaff. You probably don’t have unlimited sales and estimating resources to effectively chase every project so focus on the ones that fit your business and have a high potential of converting to a sale.
- Create interactive conversations with your buyers. In most cases, humans are making buying decisions, and without talking to them you’re just another number.
- Gather essential information about the project, buyers and competitors. A little key information goes a long way to help your team highlight key differentiators beyond price in your proposal.
- …Close the deal. You need an opportunity to present your unique approach to the project and your team’s ability to deliver optimal results. You should also plan to field questions from the customer to put their mind at ease. Without this opportunity, your bid is all the information available to your buyer to make a decision.
Poised For Growth?
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