So What’s the Real Cost For Winning Work?
A recent research discovered that the real price of the bidding process that is paid in the construction industry is about £3 billions. London flooring contractors say that during Digital Construction Week a webinar will be hold to show how to reduce these costs through digitalisation dramatically.
- What the research showed was that the bid cost figures out to 0,57% of the value of the project. However, when you add the amount that is spent on losing and winning bids the total is estimated to be almost £3 billions. What flooring experts in London say is that the bidding process is often not considered in details and is not given the necessary attention and analysis. Fortunately, they point out there is a huge potential for savings and efficiencies in time and money.
- When the process of winning work is traditionally it is done by spreading the resources over big number of bids. The conducted research showed that the average number of bidders per tender is 5. That lines up with the normal length of such tender lists which is between 4 and 6. London flooring contractors explained that the actual cost for a winning bid is the cost of the winning bid plus the cost of four losing bids. In other words, the total cost rises with up to 2-3% of the revenue which is overwhelming speaking of the billions pounds spent in total.
The webinar will also involve topics like bid selectivity, relationship building and process management. The sole purpose is to make the industry work smarter in the era of digitalisation. London flooring professionals are positive that with the help of data and analytics the construction sector will flourish!
Inspired by www.buildersconference.co.uk