Erisa-Bidding or No Bidding Decision Making

Bid or No Bid Decision Making

Bid or No Bid Decision Making. In the process of looking for a property, we get help from a contractor of our choosing. It’s important to pick a quality contractor, as a good amount of time and resources are invested. Once we get our dream project, the final step is to pay. Payment can be done through a variety of methods such as cash, loans, EMIs, or a bid/no-bid process.  


Investing in property is a big decision. Our lifelong savings are at stake. Even large commercial companies sometimes make mistakes while bidding. Therefore, the decision of bid or no bid is very crucial. This knowledge is very important, especially for a contractor, as it’s important to have an eye for the right project. Saying yes or no to a project can be a game-changer. Looking for an opportunity to get the best deal is critical.


How do I make a Bid/No-Bid Decision?


Erisa-Bieden of geen besluitvorming over bieden-How do I make the decision to bid or not to bid

Before making the final decision, there are many variables to consider. Gather your team and discuss the following question. Consider all scenarios from the best to the worst situations. This will help you to make up your mind.



  • What is the background of the project?
  • Is the location feasible? 
  • Who are our competitors?
  • What is the probability of winning or losing?
  • Is the project good for the company?
  • Will the company be moving forward in the right direction with this project?
  • What will the profit be?
  • What is the maximum limit to bid?
  • Do we have the required funding, tools, machinery, and labor to complete the project?
  • What is the relationship with the client?
  • What are the project-related risks?


If most of the questions are answered positively, then there is no harm in proceeding with the bid. However, if you are having doubts and get negative answers, then maybe you should consider a no-bid decision


Factors to consider when making a Bid/No-Bid Decision


Here are some elements you should keep in mind before bidding. Be careful to not rush into things and always remember that ‘no’ can sometimes be the best answer. 


Erisa Projects presents some factors you should consider before making your decision:


Learn from your past


Erisa-Bieden of geen besluitvorming over bieden-learn from your past

We learn the most important lessons from our past experiences. In the bidding process, you should keep track of your previous projects. Stay on top of your wins and losses. Know your weak points from past bidding where you failed to win.


In addition, it might be the case that you are short on funds. If you are new to this industry, a lack of experience can affect the decision. Yet with time and more experience, you will learn your strengths and weaknesses


It doesn’t end here; how you work is also important. Continuous self-evaluation and reflection are necessary to make good, logical decisions. Try to correct your mistakes and make the bidding decision carefully.


Risk Assessment


Erisa-Bieden of geen besluitvorming over bieden-Risks evaluation

We read above that historical analysis is important for the project. Similarly, risk assessments associated with the project are very crucial.


There is no point in winning a bid and investing in a project when it will only have low returns.


The comprehensive drawbacks of the property should be noted.


Also, previous projects will give you hints as to which property is reliable. Consider the time, money, and risk involved.


Some common risks are missing documents, unfavorable site conditions, safety concerns, etc. 




Erisa-Bidding or No Bidding Decision Making-Cost effectiveness

Each business focuses on earning profit. Otherwise, there is no use in investment.


This same logic applies in the construction industry. The bidding should be profitable.


Before making a bid/no-bid decision, calculate all inputs including taxes, salary, insurance, vacation pay, tools and machinery, and everything you provide to the employees. This also has an area assessment.


Be aware of other factors such as location, method of construction, changing rules, and regulations. Keep all these variables in mind and then decide on a limit for your bid.


Your Capability


Erisa-Bidding or No Bidding Decision Making-your capacity

We understand that winning the bid is only one aspect of the bid/no-bid process flow.


You should also consider whether you or your company have the resources to complete the project.


There should be spare funds, manpower, equipment, and tools to invest in the new project.


Be sure you are not too behind schedule. Your backlogs must be clear before you take on a new project.


Your company should have the financial capability to support the new project. Make sure there are no obstacles.


Correct Alignment


Erisa-Bidding or No Bidding Decision Making-correct alignment

Take care of the resources, risk, and profit for a property in your bid/no-bid model. Furthermore, do not forget that your new project should align with your company. This means that you should have a clear vision as to where to invest. If your company wants to enter the private property sector, you should invest there. The same reasoning applies to whichever focus your company wants to have. Be aware of your agency’s desires


By now you must have some idea of how the bid/no-bid process works. An important takeaway is that it is not always necessary to win.


If the project is not good for the company, you don’t have enough resources, you are not clear on the client’s goal, or if there are a lot of risks involved, then it is better to move on. These decisions should be made with a calm and level-headed mind. Make a plan in advance and stick to it.

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