How to Bid on Business Contracts

Successfully obtaining business through the contract bidding process can be a lucrative means of securing long-term work and profit for your firm. Some contracts can guarantee steady cash flows for years. But to win these contracts, you will need to know how to outbid other companies that want the same contracts that you do. Knowing the ins and outs of the bidding process will help you compete for the business contracts your company needs.

Step 1

Research companies within your market area that may need or regularly contract for the services you offer. Find contact information for all the area business buildings, contact their facilities manager and list the ones that contract office cleaning services if that is the service you provide, for example.

Step 2

Contact the procurement manager for each of the companies you qualified as potential contracts in Step 1. Ask if they currently have or will have in the future, any need to contract for your company’s service offering. Ask if they maintain a list of potential contractors that they would forward a request for a contract bid when they need to obtain services. Request that they include your company on the list.

Step 3

Request an information packet detailing the company’s procurement process and bid requirements. Complete and submit the “supplier capability” forms included in the packet they send. Include whatever supporting documentation you may need to verify your business history, capacity, financial viability, and the product or service you provide. Understand that the content of the forms may vary depending on the industry or service you provide, so if your company contracts for office cleaning and window washing the packets you receive may look slightly different.

Step 4

Read thoroughly the request for bid proposal, or RFP, that you receive from prospective businesses. Know that these proposals will be detailed and failure to understand what the proposal is requiring can derail your chances at a successful bid. Go through the request line-by-line to identify what work needs to be done, in what time frame, and within what limits or restrictions your company might have to work.

 

Read full article by Malik Sharrieff, Demand Media on SmallBusiness.Chron.com