Commercial construction companies often compete to secure contracts by bidding on a developer's project. The developer essentially asks commercial construction companies how much they are willing to accept, as a payment, to build their desired building or otherwise complete their desired project. Known as a request for proposal (RFP), it's one of the most common ways in which general contractor’s contracts are secured, especially when initiated by a government institution. So, if you operate a commercial construction company, you should familiarize yourself with the process of an RFP so that you can beat your competitors and secure more general contracting contracts.
With an RFP, a company is asking commercial construction companies to bid on a project. While RFPs vary, most include a few basic elements, including the background on the soliciting company as well as the project's requirements and specifications. RFPs may also include a breakdown of tasks that the commercial construction company must complete and a time frame for each of these respective tasks.
Prepare Business Plan
It's recommended that you create a business plan before bidding on RFPs. Within this document, you can detail your commercial construction company's history, experience, skills and other traits that make it an attractive candidate for the project. If you need help creating a business plan for your commercial construction company, check out this article by Forbes for some guidance. Not only will a well-written business plan help you secure more commercial construction contracts; it can also help with funding, as banks and lenders often scrutinize a company's business plan to determine its candidacy for a loan or line of credit.
Set the Right Price
Some commercial construction companies assume that proposing a rock-bottom price will help them win more contracts. In some cases, this is true. In others, it's not true. The problem with proposing the lowest possible price is that it sends the message that your company's general contracting service is low quality. Rather, you should propose a price that's aligned with the scope of the construction project.
Where to Bid
There are several places where you can bid on commercial construction contracts by providing a proposal. One of the leading bidding networks is FBO. This free-to-use service displays a variety of government-funded commercial construction projects on which companies can bid. You can also contact large developers and government institutions directly to see if they are interested in your company's commercial construction services.
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