Standard rates are great for getting tenders out the door quickly, but don’t take into account the peculiarities of the project being priced.

You may win on some & lose on others – with the overall result being mediocre returns or worse.

If rather than using standard rates you priced according the site conditions, programme, contract requirements etc. then you may not price as many but those you do price & win will be winners.

Pricing less tenders is not a bad thing if you are selective in the bids you go for. Pricing everything that lands on your desk will mean that you have option but to use standard rates. Concentrate your efforts on projects that are in your sweet spot.

Also review your overhead recovery rate. When was the last time you reviewed your overheads, overheads will change with time & as your business grows.

It’s not uncommon to see this as contractors grow & it’s one of the first things we review when contractors ask us to help them with their bidding.

Being selective in bidding & using the correct rates for the work & overheads not only improves returns, it increases positive cashflow & decreases commercial & project risk enabling your business & reputation to grow.

Make sure your rates are right.