£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
 
 
transport network jobs

Operations Manager – Waste and Recycling

Bath & North East Somerset Council
£38,052- £40,858.
This is an exciting opportunity for an experienced waste management professional Bath, Somerset
Recuriter: Bath & North East Somerset Council

HGV Driver/Loader

Torridge District Council
£18,070 - £20,138
DRIVER/LOADER (HGV) Driving and loading a refuse/recycling collection vehicle up to 26 tonne gross weight, you will collect recycling or household ... Bideford, Devon
Recuriter: Torridge District Council

Principal Transport Officer

Cambridgeshire County Council
£37,320 to £40,198
The role will require close dialogue with developers and their agents and necessitate strong partnership working with District Councils... Cambridge, Cambridgeshire
Recuriter: Cambridgeshire County Council

Senior Engineer – Traffic and Road Safety

Redbridge London Borough Council
£35,992 - £38,994 per annum
Redbridge Council is an outer Borough, working to improve the environment and its services for residents and businesses. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Trainee Technician – Active and Sustainable Travel

Redbridge London Borough Council
£20,667 - £22,424 per annum
Redbridge Council is an outer Borough, working to improve the environment and its services for residents and businesses. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Senior Engineer – Parking

Redbridge London Borough Council
£35,992 - £38,994 per annum
To be responsible for the delivery of parking engineering design and implementation of schemes across the borough Ilford, London (Greater)
Recuriter: Redbridge London Borough Council

Senior Engineer – Highway Maintenance/Asset Management

Redbridge London Borough Council
£35,992 - £38,994 per annum
To be responsible for highway asset management, reactive and planned highway maintenance, highway safety and structural surveys and inspections. Ilford, London (Greater)
Recuriter: Redbridge London Borough Council

Trainee Technician – Projects

Redbridge London Borough Council
£20,667 - £22,424 per annum
Redbridge Council is an outer Borough, working to improve the environment and its services for residents and businesses. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Senior Engineer – Flood Management/Civil Engineering

Redbridge London Borough Council
£35,992 - £38,994 per annum
To provide expert advice on highway and land drainage, flood risk management, sustainable drainage, highway structures and bridges... Ilford, London (Greater)
Recuriter: Redbridge London Borough Council

Senior Engineer – Development Control

Redbridge London Borough Council
£35,992 - £38,994 per annum
To be responsible for assisting and supporting the operational delivery of the Council’s highways development control function and to assist the lead Ilford, London (Greater)
Recuriter: Redbridge London Borough Council

Engineer – Projects

Redbridge London Borough Council
£30,930 - £32,638 per annum
To assist with the delivery of highway and land drainage, flood risk management, sustainable drainage, highway structures and bridges... Ilford, London (Greater)
Recuriter: Redbridge London Borough Council

Engineer – Parking

Redbridge London Borough Council
£30,930 - £32,638 per annum
To assist with the delivery of parking engineering design and implementation of schemes across the borough Ilford, London (Greater)
Recuriter: Redbridge London Borough Council

Engineer (Bridges)

Cambridgeshire County Council
£32,825 - £35,401
You will have experience in the development, planning, design and implementation of transport infrastructure and related projects Cambridgeshire
Recuriter: Cambridgeshire County Council

Pest Control Officer

Brent Council
£25,746 - £27,342 p.a. inc.
Salary range
Recuriter: Brent Council

Streetworks Officer

Westminster City Council
£32,592 - £41,601
As Streetworks Officer you will be a member of the permitting and streetworks team City of Westminster, London (Greater)
Recuriter: Westminster City Council

Vehicle Mechanic

Rugby Borough Council
£23,866 - £28,221 (£28,703 - £33,941 pro rata for 44.5 hours per week)
The post holder will ideally be qualified to undertake taxi compliance testing, preparation for MOT testing from Class 4 and 7. Rugby, Warwickshire
Recuriter: Rugby Borough Council

Highways manager

Trafford Council
£45,659 - £48,558 per annum
Trafford is a thriving, prosperous and culturally vibrant Borough at the heart of the Manchester City region Trafford, Greater Manchester
Recuriter: Trafford Council

Operations Manager (City Highways)

Westminster City Council
£45,387 - £57,234
As Operations Manager for City Highways, you will be a member of the management team, contributing proactively... City of Westminster, London (Greater)
Recuriter: Westminster City Council

Executive Director of Growth, Highways and Infrastructure

Suffolk County Council
£130,000
Suffolk needs someone with ambition, drive and tenacity to deliver major change andinclusive growth that will benefit our communities. Is that you? Suffolk
Recuriter: Suffolk County Council

Assistant Director, Community Safety & Environmental Health

Royal Borough of Greenwich
Up to £100,830
You will work closely with key partners including the Police and Prevent to keep the streets and communities safe Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich