£3bn annual bidding cost for construction sector

 

Fresh research has highlighted the debilitating cost of bidding for work in the construction sector, suggesting the annual total hits around £3bn a year, in an industry where profit margins are often between 1-3%.

The construction industry is worth £110bn per year in project turnover costs with the cost of bidding for work reaching roughly 2% to 3% of total revenue, the findings suggest.

Conducted by MarketingWorks - in association with myConsole - and Reading University, the research took evidence from 140 contractors and looked at around £8bn worth of projects. It found that the average cost per contractor to win each bid is 0.57% of the project value.

”Local

Results from MarketingWorks and Reading University research

With contractors reporting a roughly one in five win rate, this means the costs of bidding for work can potentially cancel out the profit margin made on the winning project.

Philip Collard, chief executive of myConsole – which provides a software as a service (SAAS) tool to help companies make their bidding process more efficient – said: ‘The bidding process often escapes serious scrutiny and analysis. Our research highlights that this needs to change. The potential for efficiencies and savings in time and money are massive.

‘We discovered the true cost for a winning bid is the cost of four losing bids, plus the cost of the winning bid. This brings the cost of the bid process up to a staggering 2% to 3% of total revenue.

‘We have valuable insights into the behaviour and processes that win work, and can help procurement teams create massive efficiencies.’

myConsole identified a range of 'work winning behaviours' that mark out winning bidders.

Analysis of winning behaviour:

”Local

myConsole is organising a webinar series to highlight areas that provide opportunities for improvement.

The bidding costs relate to the industry as a whole, with costs incurred through developing and analysing a bid.

 

Also see

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Engineer Maintenance

Liverpool City Council
£32,233 - £37,107
Liverpool City Council are looking to recruit an Engineer Maintenance. Liverpool, Merseyside
Recuriter: Liverpool City Council

Site Supervisor

Liverpool City Council
£32,233 - £37,107
Liverpool City Council wish to appoint Site Supervisors to supervise the City Council's highway construction works. Liverpool, Merseyside
Recuriter: Liverpool City Council

Permit Officer

Liverpool City Council
£23,111 - £27,358
Liverpool City Council are looking to recruit a Permit Officer. Liverpool, Merseyside
Recuriter: Liverpool City Council

Contracts Manager

Liverpool City Council
£37,107 - £41,846
Liverpool City Council wish to recruit a Contracts Manager based in Highways & Transportation. Liverpool, Merseyside
Recuriter: Liverpool City Council

Principal Engineer - Asset Management

Liverpool City Council
£37,107 - £41,846
Liverpool City Council wish to recruit a Principal Engineer - Asset Management. Liverpool, Merseyside
Recuriter: Liverpool City Council

Highways Inspector

Liverpool City Council
£32,233 - £37,107
We are seeking to recruit an enthusiastic individual to be a key member of our Highways Team. Liverpool, Merseyside
Recuriter: Liverpool City Council

Engineer - Capital Projects

Liverpool City Council
£32,233 - £37,107
Liverpool City Council is looking to recruit an Engineer - Capital Projects. Liverpool, Merseyside
Recuriter: Liverpool City Council

Engineer - Highways Capital Projects (S106)

Liverpool City Council
£32,233 - £37,107
Liverpool City Council wish to recruit an Engineer (Capital Projects). Liverpool, Merseyside
Recuriter: Liverpool City Council

Team Leader - Asset Management

Liverpool City Council
£41,846 - £46,560
Liverpool City Council wish to recruit a Team Leader - Asset Management. Liverpool, Merseyside
Recuriter: Liverpool City Council

Technical Assistant

Liverpool City Council
£23,111 - £27,358
Liverpool City Council are looking to recruit a Technical Assistant. Liverpool, Merseyside
Recuriter: Liverpool City Council

Waste and Recycling Engagement Officer

Camden London Borough Council
£24,460 - £26,358
We now have an exciting opportunity for a talented and enthusiastic individual to join us and be part of the North London Waste Authority (NLWA). Camden, London (Greater)
Recuriter: Camden London Borough Council

Major Transport & Development Projects - Strategic Specialist

Wiltshire Council
£51,763 - £57,066
Wiltshire has a highly regarded record of securing funding and delivering major transport improvements across all modes of travel. Wiltshire
Recuriter: Wiltshire Council

Assistant Director - Growth and Development

Lincoln City Council
£59,058.00 - £65,127.00
Looking for an experienced manager with a good track record in proactively driving economic growth and investment. Lincoln, Lincolnshire
Recuriter: Lincoln City Council

Assistant Director – Transport and Connectivity

Birmingham City Council
£73,513 - £90,864
This is one of a number of influential new senior roles for collaborative people, motivated by doing what’s right for our city and residents. Birmingham, West Midlands
Recuriter: Birmingham City Council

Director (Environment and Planning)

Hinckley & Bosworth Borough Council
£77,265 p.a.
You will have a great opportunity to drive forward an ambitious strategic growth agenda... Hinckley, Leicestershire
Recuriter: Hinckley & Bosworth Borough Council

Service Director – Environment

Kirklees Metropolitan Council
£98,615
Looking to recruit to a key post within our Economy and Infrastructure Directorate.  Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Transport & Development Officer (Career Grade)

London Borough of Bexley
£29,130 - £40,173
This is a Career Grade post and an excellent opportunity. Bexley (City/Town), London (Greater)
Recuriter: London Borough of Bexley

Transport Planning Officer x 2

Plymouth City Council
£32,233 to £41,846
If you are an experienced Transport Planner then we need you to step aboard.  Plympton, Plymouth
Recuriter: Plymouth City Council

Transport Planning Officer x 2

Plymouth City Council
£32,233 to £41,846
Exciting time to join the Council and this role represents an opportunity to make a real difference... Plympton, Plymouth
Recuriter: Plymouth City Council

Waste and Fleet Operations Manager

Ipswich Borough Council
£52,020 - £56,100 (pay award pending)
Looking for someone to lead and manage a large and vital operational area... Ipswich, Suffolk
Recuriter: Ipswich Borough Council