Slashing prices & programme is never a good bid winning strategy.
The price & programme you submit to the client should be your price best price to do complete the works & make a profit.
Trying to compete against your competitors’ price will only cause damage to you & end up as savings & additional profit for the client.
Using it as a strategy to get a foot in the door also makes no sense, if the main contractor has brought from you because of your reduced prices & programme, what will happen when you have to increase prices and/or you continually struggle on site because the programmes you signed up to are not achievable.
Go elsewhere – so what have your gained?
Know the value of your offering, YOURS not your competitors – you don’t know if he is pricing it below cost, his overheads may not be as expensive as yours, he may cut corners on site etc. The truth is you don’t know BUT you do know your costs.
The only person you should be competing against is you.
If you are continually losing work, look internally that’s where the problem is.
Thoroughly review your costs, construction methodology, programmes etc. to find savings & efficiencies. That’s how you become competitive & more profitable, not by slashing tenders.
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