Value-Added Bidding: The Key to Winning Highly Competitive Bids

Value-Added Bidding: The Key to Winning Highly Competitive Bids

Project costs will always be important to owners and architects, but another factor comes into play on particular projects (and bidding is tight) that can mean the difference in awarding the bid to one contractor or another.  For anyone unfamiliar with the term “Value-Added Bidding”, it means how contractors distinguish their bids, and substantially comes under the heading of value-added service.  Speaking for owners, architects appreciate knowing what these services are.  At the same time, the contractor must be able to show that a.)  he’s performed these services in the past, and b.) how they will impact the current project. 

For owners not represented by an architect, the contractor must be able to anticipate questions with answers that present opportunities to talk about services that will add value to their project.  It is also important that the contractor present these “extra” services in a way that addresses former projects and how these services proved their value to the owners.

Finding clues to present value-added services
Before thinking about costs, the competitive contractor will read plans and specifications with a view to finding project pressure points, unique requirements, and potential stumbling blocks.  By listing them as questions, he is in a position to email the architect and legitimately ask for answers.  Depending on the answers, the contractor will appraise them for prioritizing, and select those that will have the greatest impact on the project.  With effective time management, he may be able to select all of them for treatment.

Reviewing capabilities against provisional services
An honest assessment of service capabilities may have some contractors crossing some of these items off the list, focusing instead on several items that will draw on experience, and have the best potential to become candidates for value-added services.  With the decision made, time is spent detailing these services.

Presentation—and details
Most bid forms have a space for contractors to present “Special Qualifications”.  Listing special services briefly here and attaching a detail sheet is the best way to present your case for Value-Added Services.  Listing them as such will gain attention—particularly if your bid falls within the “reasonable” range.  It’s important that the contractor a.) realizes that he’s presenting added value, not price related (with experienced capabilities and the proper tools these services should not debit his profits harshly) and b.)he must demonstrate his primary qualifications in order for Value-Added Services to have any meaning.

Proof of Value-Added Claims
With the details of his Value-Added Services offer presented on a separate page, the contractor is obligated to back up his claims.  Photographs, correspondence, financial extracts, log sheets, project records, and owner acknowledgements will serve to support his claim of prior experience and success in delivery.

 Architects and owners will certainly appreciate the contractor’s efforts, with additional bid preparation, to offer additional services.  If he is awarded the bid/quote, and delivers on his promises, the contractor can use this experience on his Value-Added Services list, and add another successful project to enhance his reputation.

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Posted on Nov 03, 2010 by admin | Posted in Construction Bids, Construction Contracts, Construction Marketing

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