Updated on 9/4/2024.
General contractors often find themselves sending individual bid invitations for their projects day-to-day, which can be time-consuming and exhausting. To get genuine, quality bids from subcontractors or suppliers, general contractors have the chance to use an invitation to bid system to send their bidding opportunities effectively. In this post, we’ll explain why an invitation to bid software platform is essential to send effective bid invites that can lead to you getting better bids and how Pantera can help you.
What is Invitation to Bid (ITB) Software and How Does it Help?
Bid management is time-consuming, and as a general contractor, you can spend hours prequalifying subcontractors, creating ITB’s, and sending each invited bidder with project details for each project. Many general contractors invest in an Invitation to Bid software to streamline their projects, organize their team, save time throughout their day, and, more importantly, have a competitive edge on their competitors.
Related: Top 3 Causes of Construction Project Rework and How to Avoid Them.
How to Send an Effective Invitation to Bid
Add Accurate Project Details
This might seem obvious, but making sure your project details are correct before sending your bid invites is crucial. 20% of general contractors reported getting subcontractors to respond to their ITB was a major problem according to this study. Having the correct project details will allow you to:
- Find subcontractors in the right trade
- Reach accurate subcontractors in the work area
- Make an informed decision when choosing the most qualified and cost-effective bid
Stay Competitive
Let’s face it: competition in the construction industry is relentless. Finding the right subcontractors for your projects is essential in the overall productivity and quality of your services. By standing out from your competition, you can increase the demand for better bids and better prices. Some professional construction software systems like Pantera allow you to fully customize your bid invitations to match your brand, company, and website. Make a lasting impression on your bidders by standing out from your competition.
Related: The Four Major Elements of Highly Successful Contractors (Part Two of Two).
Prequalify Bidders
As a general contractor, being selective when choosing the subcontractors you work with is vital in providing quality work to your company standards. To find these subcontractors, implementing a prequalification process is essential. Not only does the prequalification process help you select the right subcontractors, but it also helps you reduce risks that could impact your business and future contracts. Since 24% of general contractors spend 5 hours or more sending out their first round of project bid invites, it’s important to prequalify bidders. See why the annual qualification of subcontractors is the new norm.
Learn more about our prequalification process here.
4 Tips for Better Bid Responses
1.Use Bid Forms
Standardizing bid forms allow you to explain all of the details in your project bid. Not only does it help protect you legally, but bid forms also help you establish and compare the best bid for your project.
Related: The Ultimate Guide to Risk Mitigation.
2.Utilize Job Awarded Features
When sending out thousands of bid invitations, it’s easy to select the awarded bid and close out the rest. Though, to stay ahead of your competition and positively impact future subcontractor bidders, easily communicating the bid status helps ensure you have the opportunity to create lasting impressions with additional subcontractors.
3.Communicate Actual Results
Letting the subcontractors know why they didn’t win the bid, and thanking them for the time to provide a bid, will ensure that subcontractors will bid competitively on your future projects. When sending out thousands of bid invitations, it’s easy to select the awarded bid and close out the rest. Though, to stay ahead of your competition and positively impact future subcontractor bidders, easily communicating the bid status helps ensure you have the opportunity to create lasting impressions with additional subcontractors.
Related: When Project Management Software Isn’t Project Management Software.
4.Expand Your Private List
Expanding your list of qualified subcontractors can help you get better bid responses. By sending ITB requests to subcontractors on your private list, you know exactly who you’re inviting and the rough likelihood of their response. To expand your list, keep track of responsive subcontractors after sending each ITB. Build a process to record and store the contact info of responsive subcontractors after sending out invitation requests. Don’t send out ITBs blindly. Expand your private list of responsive subcontractors to get better responses.
Pantera Can Help with Your Invitation to Bid Process
In addition to your private contact list, having the ability to access additional, qualified subcontractors can help you expand your reach, and find the right fit for your projects.
While bid invitations can seem like a daunting task, investing in the right construction software will help you save time, keep lasting relationships, and remain competitive. Start getting better bid responses with Pantera.
Schedule a free demo today to see how Pantera can help you!
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