Marketing Works and the University of Reading have extended the deadline for their Bid Cost Survey to 5 December 2014. The survey, designed to uncover the true cost of bidding across the UK construction sector in 2014, updates a 2003 survey on the same subject. Consultants and contractors across the UK construction industry are being asked to complete the five-minute survey to update the 2003 results and find out how the situation has changed in the intervening 10 years.
Philip Collard, managing director of MarketingWorks, explains: “From the data gathered in our previous research in 2003 we extrapolated that the construction industry was spending over £2 billion on bidding each year and that the average bid costs were around £3k for consultants and £34k for contractors on design and build projects.”
“Whilst we will not start the bid cost analysis until early December, we are getting feedback from both contractors and consultants who, having been informed by the criteria from our survey, have undertaken their own in-depth analysis themselves. Early insights suggest: tier one contractors are now spending well in excess of £200k per bid; total work winning costs for contractors still expected to be 2 to 3 per cent of their turnover; total work winning costs for consultants still expected to be 7 to 10 per cent of their turnover; there are still opportunities to increase margins by 1 per cent at the very least.”
Data will be collected by reference to actual projects and will be analysed to discover: the true cost of bidding for each sector and procurement route in 2014; what factors influence those costs; which behaviours and activities increase or decrease the likelihood of winning; whether there are insights on improving and refining bid selectivity that could minimise expensive abortive bidding; where sustainable efficiencies in win rate performance can be achieved.