The Bidding Process and Securing a Surety Bond in Maryland
With the construction business now booming and in full swing there will be more and even stiffer competition when it comes to securing a winning bid on a new project. A Maryland surety bond, required by most clients, will be an important step towards winning those desired contracts.
Contractors should know that being the low bidder is often not enough in today’s market. In order to win more construction jobs, customers need a better reason to award a particular company a contract. Customers prefer to buy the best value, and to develop trusted relationships. But all factors being equal, they will often go with the lowest price.
To overcome being judged solely on delivering the lowest bid, it is suggested that contractors offer services that will set their company apart from the competition, with methods for improving things like their proposal strategy, and tracking bid success-to-failure ratio. This allows a company to determine which areas of the process they need to work on.
The art of winning bids for construction projects
Learning how to become the select bidder and getting on the right bid lists is a good place to start. Discover winning bid strategies that will give customers what they want by offering more than the minimum required by the plans and specifications. Learn how to get in front of the person who ultimately makes decisions in order to negotiate to win more contracts, and look for assistance from others who may have bid on similar construction contracts in the past.
Don’t wait for the SBA or government to contact you with “full and open competition” notices, create a contract location strategy and follow through on a regular basis. An effective search strategy focuses on a specific, geographic target location. Locating and preparing federal bids and proposals can be a difficult and time-consuming process that leaves no room for errors.
Locating and bidding on government construction contracts can seem difficult and confusing for those just getting started, so contractors need to become fully educated about every aspect of the business, including bidding procedures and the myriad of rules and regulations. In addition, understand that the SBA administers the government’s small business construction contracting programs. By qualifying as a small business (meaning the company’s average annual receipts range between $14 million to about $35.5 million) a business will be competing for construction contracts on equal ground with other small businesses.
Remember that a Maryland surety bond is the first step in this exciting and rewarding process. Speak to an agent about securing bonds today.