How to Win Electrical Contracts

Large companies may have an easier time tendering and winning profitable electrical contracts based on their financial muscle, expertise, and great word-of-mouth reputation.

This may not be the case for small businesses trying to bid on electrical jobs in a competitive market. Here’s how to successfully bid for electrical work as a small company.

How Electrical Bids Work

Like in other sectors, most electrical work is secured through competitive bidding.

This starts when a client invites electrical bids or request for proposals from entities specializing in electrical installations.

Interested companies take up the invitation – sending a reply to the client indicating the amount and the time it would take them to complete the job.

The client reads through the electrical bids after which they settle on a company that appears to be most qualified for the job.

Here are a few points to remember when bidding for electrical contracts.

1. Carefully read the rules for the electrical bids before submitting your proposal.
2. Clearly demonstrate that you have the capacity to handle such a project. Table evidence showing that you have a history of keeping to your budget and schedule.
3. Do not apply for electrical contracts that you cannot handle.
4. Leave a small margin for negotiation. It is likely that the client will ask for a discount. However, you should never deviate too far from your initial offer.

How to Calculate your Bid

Many inexperienced contractors usually mess themselves up by failing to properly calculate all the expenses that go into their electrical bids.

This is so risky as some clients will just accept the bid and allow the contractor to get down to work. Sooner than later, the contractor will find out that their bid was erroneous.

They will either charge the client more or resort to taking more time. Either way, this hurts the contractor’s reputation – weakening his ability to win future electrical contracts.

RELATED: How to Write an Electrical Contract

When submitting bids on electrical jobs, it is important to cover issues such as:

• Demolition, if applicable
• Material costs
• Subcontractor fees
• Labor costs
• Additional equipment costs
• Preventative maintenance

Setting Prices

Never fall into the temptation of setting extremely low prices for electrical work as a strategy to weaken the bids offered by others.

This may be interpreted as a sign of inexperience or shoddy workmanship.

You should take-out a market survey of your competitors to find out the amounts they charge for their services and whether they bill electrical work on a project or hourly basis.

How to Find Electrical Contracts

Small business owners find it very difficult to compete with big companies, especially those with huge advertising budgets.

However, this does not mean that you cannot compete with the big boys.

One way to draw the attention of clients is by marketing yourself on social media.

By sharing useful information on electrical issues on your timeline, potential customers – especially those in your locality – can easily identify you as a potential service provider.

You should also invest in a well-designed website and blog. The website will give you a professional outlook while the blog will serve as your content marketing engine.

It is also important to network with project managers in your neighborhood. Request to be added to their electrical work tendering lists to help you catch tenders as they arise.

You should also join local associations for electrical contractors. This will allow you to network with larger contractors who are often on the lookout for reliable subcontractors.

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