Winning ways

The fallacy that the more tenders you bid for, the higher your chances of winning a project still prevails in the construction industry. While there are a few grains of truth in this theory, it is a perspective synonymous with the game of roulette and not at all relevant when a firm is trying to differentiate its services from the competition in an increasingly competitive market.

Historic win rates can lull firms into a belief that all opportunities are the same and will continue to flow at current levels. But the future success of a firm should not be based on a numbers game but on planned strategic initiatives, targeting particular industry sectors and offering a predetermined range of services. If firms bid for work that they know they will not win, they may as well spend the tendering costs on lottery tickets.

Fortunately, there are a number of useful checks that can help you increase your chances of winning the contract.

Getting the bid strategy right

First, you should develop a formalised tender assessment procedure that gives a mark out of 10 for every critical factor that has, in the past, increased your win rate. For example, obvious high scores should be given for opportunities that exactly meet your core competencies and expertise; jobs referred to you by other consultants, especially if you have worked with them before; and jobs for a previous client. Letting potential clients know of current clients that repeat work offers will give you a definite competitive edge. Less obvious factors include how much advance warning you have been given; the time you have to put a proper bid together; good vibes about the project; knowledge of the client's performance record and any previous relationships with the competition; and whether you can get to work on the bid without incurring major disruption, staff inconvenience and extra costs.

These factors unique to the firm should be scored, and an overall potential success rate for each tender worked out and expressed as a percentage. By treating each and every opportunity differently, firms can identify quickly which ones offer the best chance of conversion and devote themselves to the high scorers. These deserve maximum team effort, enthusiasm and commitment. If your team is making enquiries, the client will see that you have gone one step further than your competitors and take your bid more seriously.

Improving your bid documents

The second way to increase your conversion rate is to improve your proposal documentation. Clients frequently complain that submission documents are boring, weighty and do not state exactly what is being offered. No wonder clients just focus on the fee. Those writing proposals often ignore important steps such as:

Executive summary This should clearly summarise the entire offer. Most client bodies have a high-level final decision-maker who wants a quick, hands-on review. These people have limited time, so a one- or two-page précis will help make or confirm an impression. Write it after the document has been completed and not before.

Meeting the client's needs Identify the main problem areas and the circumstances that need addressing. This will establish such issues as the standard of service provision the client requires. Don't assume it wants the full gold standard service – a bronze standard might be sufficient if you describe how it will achieve the client's main objectives. Check your findings with the client before writing the final document to ensure you are in agreement. The document must explain how your preferred methods and procedures will help solve the client's problems. Be very clear as to why these are different to your competitors' methods. Explain how your methods will solve problems while saving time and money.

If firms bid for work they know they will not win, they may as well spend the costs on lottery tickets

Personnel It is crucial to outline why an individual has been put forward for a job. Simply sending a CV and expecting the client to work it out is very risky.

Case studies Include detailed case studies of appropriate previous experience, not just a list of all the similar projects you have undertaken. Explain how the solutions you provided on those projects cut costs and saved time for clients.

Proof of ability Letters and testimonials from satisfied clients, even just one-line extracts, will comfort the client. If it understands that another client that had a similar problem rates you highly, you become a potential solution to its problem rather than an unknown quantity.

Proposed basis of charging When you have shown how your service differs from your competitors' and how it satisfies the client's needs, you can justify your fee. Remember to identify what services will be offered for your fee and what is not provided. Clients will take advantage, so be clear what is and is not covered. If you provide extra services without cost, make sure the client knows that what is being offered is added value.

Appendices Put all the bulky stuff here or in a separate document so that the main proposal remains tailored and focused.

Public sector tenders

It is harder to tailor documents for public sector clients as endless pre-qualification forms suppress creativity, but firms should at least make it easy for the client to assess their submission.

Resist the temptation to write "refer to previous section" – type in the information again. The person marking your submission might find it easier to give you a higher score if they do not have to keep referring back. Given the crop of information technology software and colour printers available, there is no excuse for using and reusing a standard proposal document if you are given the opportunity to submit a tailored document.