Starting a construction business is a decision that you should be very proud that you made. Running your own construction company can be very profitable for you as long as you have project leads to keep you busy. One of the most profitable ways to make money in the construction industry is by Responding To Project Tenders.
If you are just starting your business, you will be confronted with many choices about how to set up your business, including selecting your customer base and what type of project to work on.
Responding to RFP's will help you make more money by deciding on what type of projects shall we bid on (Restaurants, Retail Stores, Hospitals), what size (dollar value) projects do we want to work on and how far are we willing to travel.
There are numerous sites and resources that you can use to find and access project details on a daily basis. Some of the sites are free to use, while others charge a monthly or annual subscription Fee. Making the decision to subscribe to any of the project lead sites will allow you to access millions of dollars worth of projects with the project details sent directly to your email inbox every day.
Deciding to subscribe to a project lead website will definitely fill your pipeline for as long as you choose to respond to the project invitations. I will be discussing ways to find other projects leads and obtaining project documents in our next article, but for now, here are some of the popular sites you can access for projects leads:
The Daily Commercial News
McGraw Hill Dodge
There are definitely pros and cons that you will be faced with when making any business decision, so before you make the decision on whether to use Responding To Proposals as a way to generate more profits for your business you should understand some of the pros and cons.
Some of the pros and cons are:
Learning How to Respond To Tenders has several advantages. First off, it’s a multi-million dollar industry that you can access, whether you just starting or have an existing business. Finding project leads is as simple as registering with a free or paid subscription site, setting up your profile or preferences and reviewing the project details for projects that you are interested in.
Some of the other advantages include that one project landed will usually cover the subscription cost of any site you register with. Responding to Project Invitations allows you to focus your business on what type of projects you will consistently bid on, it allows you to set up a basic system for estimating on proposals and it allows you to make profits for your business.
Responding to proposals are easy to do. Each subscription site makes it fairly easy to navigate around the site to search and find what you want, plus they usually deliver a daily project list of new projects directly to your email inbox and directions to access projects files are generally posted in clear view for you to understand and access with ease.
However, using these sites do have some major disadvantages when it comes to selecting what projects to bid on. There are numerous projects that are released on a daily basis and you may get information overload and frustrated with what projects to bid on. Trying to review and access every project file is a mistake unless you can spit out accurate estimates at amazing speeds.
You probably don't have a business relationship with any of the owners or contractors for the projects that you are interested in. You don't know their reputation of paying contractors on time and you don't have a person to contact in the office. There are ways to research your potential customers and there are ways to get owners and contractors interested in your company services.
Another disadvantage would be that there are probably other contractors that are bidding on the projects that you are responding to. Despite these disadvantages, a lot of contractors use this process to generate millions of dollars, year in and year out.
The reason that many contractors make the choice to respond to proposals is that there is so much potential money to be made from doing so and it fairly easy to get a profitable business started. Choosing to respond to proposals is ultimately up to you and your business goals and if you do decide to you will need to respond so that every proposal you submit is priced to generate a profit for your business.
If you do decide to start responding to RFP's, then it would be a good idea to take 10 - 20 minutes to get a pen and paper to answer the following questions:
What type of projects shall we bid on? (Restaurants, Retail Stores, Hospitals),
What size (dollar amount) projects do we want to work on?
How far are we willing to travel?
Answering the questions will allow you to start setting up a system that will outline the project that is right for you company. Use your answers as the criteria you use to select the jobs your estimator will respond to, this alone will increase your chances of winning projects in the future.
In today's article we talked about:
- 3 basic questions to ask, to establish your response criteria
- Where to find daily project leads for you to access
- The Pros and Cons of deciding to Respond To Tenders
That's it for today's article, our next article we be on finding and obtaining project documents to respond to for your next project.
If you have any questions or need any assistance please feel free to contact me at any time using the contact information below.
I will be happy to help.
Much Success To You,