£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

Service Manager – Network Management

Somerset County Council
£46,122 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Principal Traffic Control Engineer

Somerset County Council
£33,799 to £37,849 per annum
A number of exciting permanent opportunities have arisen to drive forward further improvements to our traffic related services. Somerset
Recuriter: Somerset County Council

Assistant Engineer

Bedford Borough Council
£31,371 - £32,878 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Clerk of Works

Bedford Borough Council
£27,905 - £30,507 + market rate supplement £2,630 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Technician

Bedford Borough Council
£27,905 - £30,507 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Engineering Technician

Bedford Borough Council
£24,313 - £26,999 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Engineer – Multiple disciplines

Bedford Borough Council
£33,799 - £36,876 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure.  Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Trainee Engineering Technician

Bedford Borough Council
£21,589 - £23,836 per annum
Bedford is growing at a fast pace and we are investing heavily in our highways infrastructure. Bedford, Bedfordshire
Recuriter: Bedford Borough Council

Senior Asset Engineer

Isle of Man Government
£47,064 - £54,805
The Isle of Man is a special place to live and work! Isle of Man (GB) (IM)
Recuriter: Isle of Man Government

Commercial Services Officer - Funerals

Brent Council
£33,291 - £35,724 p.a. inc. plus Standby Allowance
The post will be involved in all aspects of the funeral service Brent, London (Greater)
Recuriter: Brent Council

Transportation Planning Officer x2

Sandwell Metropolitan Borough Council
Band F, SCP 26-31 (£29,636 – £33,799 per annum) (£15.36 - £17.52 per hour)
The post holders will be part of a team developing transport policy encompassing all modes of travel Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Highway Asset Engineer

Lambeth Council
£38,403 pa rising in annual increments to £41,466 pa incl LW
Lambeth is a vibrant place with a diverse population and an exciting cultural scene. Lambeth, London (Greater)
Recuriter: Lambeth Council

Senior Traffic Engineer

East Riding of Yorkshire Council
£32.029 - £34.788 career grade
We need an enthusiastic and experienced traffic engineer to manage our Traffic Team. East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Senior Community Infrastructure Levy Administration Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,643 - £44,373
The successful candidate will play a key role in ensuring Richmond and Wandsworth Councils mitigate the... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Engineer (Structures and Tunnel)

Medway Council
£31,385 - £37,053
Exciting opportunity has arisen to work within the highways department in Medway Council... Rochester, Kent
Recuriter: Medway Council

Principal Information and Monitoring Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,183-£47,274 (Grade PO5)
Opportunity has arisen within the Spatial and Transport Planning service for a team leader with demonstrable practical experience of... London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Community Infrastructure Levy Administration Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,643-£44,373 (Linked Grade PO2- PO4)
There has never been a more challenging – or rewarding – time to work for Richmond and Wandsworth.  London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Engineer – Highways Development Service (HDS)

North Yorkshire County Council
£38,813 - £42,683 pa
We are looking for someone to join the Development Management Team in a new post. Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Senior Development Management Engineer – Section 38

Warwickshire County Council
£37,849 - £39,782
Due to the nature of the role the ability to travel effectively throughout Warwickshire is essential. Warwick, Warwickshire
Recuriter: Warwickshire County Council

Partnerships & Activities Manager

London Borough of Bexley
£31,353 - £36,876
Currently seeking an experienced manager to work in the Parks and Open Spaces Team of Bexley Council’s Communities Department. Bexley (City/Town), London (Greater)
Recuriter: London Borough of Bexley