Bid Win Cheat Sheet

7 PROVEN STEPS

to How I Double My Bid Wins

BID WIN CHEAT SHEET

Written by

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

About Mark...

The quick version… I was top in my trade class and have been
estimating since 1993...
I went on to create a Bid Win system and I used it to take a
failing company from $600K to over $4,500,000 in revenue.
Plus, the company was struggling with a measly 1% profit
margin and I increased it to over 15.1% net profit margin all in
just over one year. I have been featured in over 36
newspapers around the country for developing a business
overhead, break-even rate and profit margin calculating
system which you can read my story here...
So let’s get to the training because I know that is what you are
really interested in...

Read on to learn more...

Copyright © 2017 MarkLallemand.com

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Step #1: Know your Overhead &
Break-Even Rate (No, Really!)

Many trade contractors and business owners will assume they know their
overhead and break-even rate. This is a huge mistake, because these two very
important numbers will help you not only win more bids but it will also ensure you
will be profitable (of course that is only if you run the job correctly, which most
trade contractors don’t have an issue doing)...
You see most trade contractors guess at their overhead and figure the “Bid
Killer” percentage (That is what I call it :) of 10%... But the problem with this is
that it is almost always 100% of the time wrong! Plus to make things worse it will
also cause you to lose projects that you can actually win :O and win projects that
are losers (losers in profit is what I mean)...
Now I know what you may be thinking… HOW IS THAT POSSIBLE???

Copyright © 2017 MarkLallemand.com

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Well the first thing I want to tell you is to never use a percentage for overhead when bidding.
Because your entire project is based on hours and your overhead should be based on an
hourly rate as well and not a percentage, especially a percentage that is not calculated and a
complete guess...

Here is an Example of What I Mean...

Let’s say you have two contractors that are identical. One uses on his bids overhead as a %
and the other $/hour. We have two projects. both are 1000 hours each. The first project the
owner is supplying most of the material and the second project has a really height material
package...

Job 1 - Customer A (WIN) Job 1 - Customer B (LOSE)

(Using 10% as Overhead) (Using $10 per hour as Overhead)
Total hours: 1000 Total hours 1000
Total Job Cost $50,000
Total Job Cost: $50,000 Overhead $10 = $10,000
Overhead 10%: $5,000 Profit 10% = $6,000
Total Bid = $66,000
Profit 10%: $5,000
Total Bid: $60,000

Job 2 - Customer A (LOSE) Job 2 - Customer B (WIN)

(Using 10% as Overhead) (Using $10 per hour as Overhead)
Total hours 1000 Total hours 1000
Total Job Cost $200,000
Total Job Cost $200,000 Overhead $10 = $10,000
Overhead 10% = $20,000 Profit 10% = $21,000
Total Bid = $231,000
Profit 10% = $20,000
Total Bid = $240,000

Add to Total Bid an addition 8,000 in profit
New Total Bid =$239,000

Copyright © 2017 MarkLallemand.com

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to How I Double My Bid Wins

Contractor A:
Now let’s examine the numbers for Contractor A who uses a % method for overhead...
Job 1 - Won the Bid

(Had Lowest Bid Number But did not recover Overhead Operating Costs)

Job 2 - Lost the Bid

(Had Highest Bid Number, but could have won the bid if they did not use a % method for overhead)

However Contractor A Overhead is $10 an hour like contractor B but he used 10% so it made
him short on recovering all of his overhead costs which is why we marked the WIn in Red on
the previous page...

We know it is a loss because Contractor A is an exact match to Contractor B who calculated
his overhead at $10 per hour. Which means all the profit margin that was added to the bid was
taken by the overhead shortage that a % method will do. This will happen almost every time
on every bid, more often than most realize…

Contractor B:
Now if we examine the numbers for Contractor B who uses a $/hour rate for overhead…
Job 1 - Lost the Bid

(Had Highest Bid Number, however from calculating real overhead costs the contractor knows they can not go any lower
because it would cause the contractor to lose money)

Job 2 - Won the Bid

(Had Lowest Bid Number and was able to add additional profit margin to the job because they know how the other contractors
bid using percentages.)

Contractor B Won the 2nd Bid and not only covered his overhead but was able to add an
additional 8,000 in profits to the project. While Contractor A did not realize by using a % for
Overhead that it will cause your number to be higher on certain projects and result in a loss.

Final Results:

Contractor A - Won a Bid (Job #1) - But Made No Profit from using a % as overhead
Contractor B - Won a Bid (Job #2) - However Made $29,000 in Net Profit Margin (14.5%)

Using a % instead of an hourly rate will cost you every time when bidding projects. It will cause
you to win bids you really don't want to win which is why we marked the win for Contractor A in
red. Also, as you can see it will cause you to lose bids you can actually win and make a lot of
money on (like Contractor B who used a $/hour rate for overhead).

Copyright © 2017 MarkLallemand.com

If you want to know your exact Overhead and Break-Even Rate per hour, then I
recommend using the MyOverhead.com system...

“Since 2001, MyOverhead.com Has Been The #1 Fully
Automated Business Overhead Cost Calculating and Profit
Margin Boosting System Online!”

Use the MyOverhead.com Calculating System to get your exact overhead costs and keep it
current as your company changes. You can break out your company costs per crew, per division or
however you prefer...
“You don't need any accounting experience, math skills or ever have to worry about doing a
single calculation ever!”…
You also will get your true Break-Even Numbers and Labor Burden Costs as well from the system
calculation… The best part is everything is done for you and it takes in most cases, less than an hour
to set up and it only takes minutes to check it and make adjustments before each bid…
No Software to buy and the system is not used to replace your current accounting system if
you use one...
We have a special offer for our Facebook Fans from MyOverhead.com The system is an annual
service and if you would like to save 30% off for life then use the coupon code below at checkout.
The system has a complete step by step visual training walkthrough system to make learning a
breeze and the system is extremely fast and easy to use...
If you are interested we have a special offer for you

Use the coupon code AEFB30LIFE
at checkout!

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

Step #2: Use your Overhead to
Select Bids that are Winners

Now many many many contractors I talk to say that Step #2: “Use your
Overhead to select bids that are winners”, is not possible. They LOL at me on
this subject all the time and that is okay :) Because a long time ago I am sure
people LOL at anyone who said the world was round and believed sailing around
it was possible...

Knowledge can change your thinking on anything and I believe once you learn
what I know to be true, you will in this case as well.

No matter what trade you are in, Electrical, Plumbing, Heating, Air Conditioning,
or type of contractor you are union or non-union it does not matter. You can use
your overhead calculation to select projects for your company to bid that are
winners before even estimating the project. Remember we are talking about
commercial, industrial and public utility projects in the competitive bid market.

Let me explain what I mean…

Once you know your actual overhead
and break-even costs per hour, you can
use the overhead cost allowed per
project chart (see it on the next page)...

You will use this chart to predict if the job
you are about to estimate and submit a
bid on, will be a winner or a loser based
on your company’s current overhead
dollar per hour rate...

Copyright © 2017 MarkLallemand.com

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Overhead Cost Allowed Per Project

Use this chart to see how much each project type will allow for an hourly overhead rate per hour. This
information has been collected from over 17 plus years of estimating for our clients with our estimating
service company called AstraEstimating.com.

Project Type Overhead Range Project Type Overhead Range

Residential/Commercial Allowed $/Hour Industrial/Utility Allowed $/Hour

Residential Home $4 to $6 Industrial Plant $15 to $18
Warehouse $5 to $7 Industrial Plant Renovation $18 to $20
Restaurant $6 to $8
Pump Stations $18 to $20
Under 4 Story Apartments $6 to $8 Pump Station Renovation $19 to $22
Building
Motel $6 to $9 Waste Water Treatment $20 to $22
Hotel $8 to $10 Plant
School $7 to $9
Sewage Treatment Plant $20 to $22

Collage $8 to $10 Solar Fields $1 to $4 per watt
Office $10 to $12 Nuclear Power Plant $25 to $35

Office Renovation $12 to $14 Dams $24 to $28
Medical Building $12 to $14 Oil Rigs $18 to $25
Shipping Yards $20 to $22
Medical Renovation $14 to $16 Naval Yards $14 to $16
Hospital $13 to $15

Hospital Renovation $15 to $17

The numbers above are used by our estimating service company daily to help our clients select the
best projects to bid. These numbers are tracked from residential, commercial, industrial and public
utility type projects from the U.S.A, Canada, Europe and Australia bid markets. We have created this
list from the last 17 plus years of bid results from Electrical, Plumbing, Heating & Air Conditioning
Projects for our clients...

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

Step #3: Build Relationships with
GC’s Before Bid Day (This is a Must!)

I know most of you know the power of word of mouth advertising and it is so powerful because of the
relationship you build with your customer to get them to recommend you to their friends and family…

The reason comes from one word and the word is TRUST!...

The customer trusts you from the relationship you have built with them no matter how slow or quick it
happened. Once you get someone's trust then getting them to use you again or recommend you to
someone else will just happen automatically…

Well the same is true when it comes to submitting your bids to General Contractors (GC’s). If you just
blind send your bid without even talking to the GC first then the chances of you winning the bid drops
exponentially!...

5 Things you must do to build a quick relationship with a GC to get them to
Trust you and award the bid to your company use on the next project...

1. Track Down a Bidders List: You will want to call to confirm who is bidding the project. You can
get this list from the architect. Bidding to more than the one GC who invited you increases your
chances of a win…

2. Introduce your Company: Ask to talk to the project manager or whoever will be making the
decision on who will be awarded the project. Introduce yourself and and your company…

3. Will you Shop our Number: Do not be afraid to ask if they will shop your number once you
submit the bid. If we pick up any type of feeling that they will then we either move on to a
different project and do not even bid the job or we may increase our bid to that GC only…

4. Get Bid Result Assurance: One thing we always do with a GC we never bid to before is we
get assurance with them that they will give us bid results after. Most contractors accept they
only get bid results around 20% of the time but for us we hover around 80%. The results is what
we use to help adjust our numbers for future bids to get us more wins...

5. Send Bid Consideration Letter: Get permission to send them a bid consideration introduction
letter with references from past projects (if possible similar to the type of project you are
bidding), also include your company size, key personnel and experience...

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

Step #4: Never Send Out your Bid
Before it is Time (Follow this Rule and you

will Win More Bids Guaranteed!)

So many contractors make this massive mistake!...

If you want to win more bids then you have to make sure you send out your bid just before the
GC has to submit his bid to the owner…

DO NOT BELIEVE THEM when the GC tell you if you want your bid to be accepted then you
must submit your bid on such and such date and time…

This happens every day in this business and just because the bid invitation you received says
for example: Turn in your bids by Tuesday at 5pm, does not mean the GC is actually bidding
the project that day. Usually it is the next day or I have even seen it go the following week.

A Simple Solution that keeps the GC happy…

All you have to do is contact the architect and
find out the real bid date and time. Call the GC
who wants the bid early and explain to him your
suppliers will not release your quoted material
until a few hours before the real bid time...
Most will complain at first but to ease their pain,
all you have to do is tell them you will submit a
scope letter to them without a price.
The scope letter should only be one page with your logo at the top with your phone.
Include all of the plan pages and addendums on the scope letter. Also include a list of
includes and excludes and at the bottom show the price at $0,000.00

This will make them happy and all the GC has to do when you submit your bid about an
hour before it is time for them to submit their bid is plug in your number.

You can see a sample estimates and scope letter on our website by clicking here...

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

Step #5: Always Call Right After
you Submit Your Bid

This may seem like you are pressuring the GC but believe me this works!...
All you have to do is pick up the phone as soon as you send your bid out and call
the GC. Make sure you talk to the person you started building the relationship
with from Step #3...
Be polite but let them know you are only checking to confirm they received your
bid, which what you are really doing is calling to see if you can get some early
feedback or maybe even find out how your number looks compared to other
bidders. Just Start Asking Questions and that is it on this step…
Believe me when I say, you can find out a lot of info about your bid and it may
even give you a little inside info to help secure the win later :)

Copyright © 2017 MarkLallemand.com

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to How I Double My Bid Wins

Step #6: Get More Bid Wins by
Tracking Bid Results

Have you ever wished you could predict the future? Well if you track all of your bid results… guess
what, you CAN come close!... WHAT??

You may be saying to yourself what the heck is this guy talking about. Well we do this every day with
our clients. We accurately predict where bids will come in at before any bids are submitted to GC’s…

By calling the GC’s you submit your bids to and ask them where your bid was compared to other
bidders will give you an amazing advanced to win future bids...

Here is an example of what I mean, taken from a real client we estimate for. The client wanted to start
out bidding several different types of jobs. We first calculated their exact overhead costs and started
bidding projects that fit their needs and also worked with their overhead numbers...

They were very focused on new schools because the company in the past worked a lot with new
schools and felt they had an advantage with them. We were tracking all bid results and used the final
bid number as our base. Next we tracked the rest of the estimate as well such as Square footage
costs, material to labor costs, material costs, labor costs, labor hours, average overhead per hour and
so on...

What it showed us after bidding 5 schools was a pattern that when our clients final bid for the school
was over $1,500,000.00 the final bid numbers increased by a considerable amount even though our bid
amount was lower. So on the next estimate we were at $1,678,000.00. From the bid tracking and the
pattern that was clearly seen we suggested to the client to increase the bid by $250,000.00. The client
agreed meaning we would add straight profit to the overall project number that already had $10.00 per
hour for overhead and a 10% profit margin included...

This increased the our bid to a new total of $1,928,000.00 and it was also a prime bid contract,
meaning no GC’s and they submitted directly to the owner. At the bid opening we Won the bid and was
low by only $1,000.00...

Tracking your <Past bid results and analysing them can
help you see where your Future> bids should be…

Resulting in More Wins and More Profit!

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

Step #7: Know The Games General
Contractors Play

Congratulations, you have made it to the final Step to How I Double My Bid Wins Cheat Sheet
:)

This last step is simple. When you are calling to see if you won the bid, please please please
understand this is not just a simple one call and you are done process. If you do that you have
already lost. Find out first which GC won the bid and then focus on calling them only to be
awarded the contract. The other GC’s use them to get bid results…

We use a schedule like this and have won jobs up to SIX MONTHS after submitting a bid.

Week 1: Call Every Day
(Unless they tell you a date to call back)

Week 2: Call Every Day

Week 3: Call Every Other Day

Week 4: Call Twice a Week +

After Week 4: Call once a week
for up to 6 months
(Keep calling to see if you won the project)

I know this seems like a lot but think about this, it only takes just a few seconds to pick up the
phone and when you are building relationships and you get their email you can put it on
autopilot. Believe me your persistence will pay off and if the GC starts to get annoyed remind
him of his obligation that he promised to give you results and give you a shot at working with
their company. Remember Step #3 Build Relationships with GC’s, This is where it really pays
off big time…

Let the GC know that you really want the job and would like to work with his company as
discussed from Step #3 :)

Copyright © 2017 MarkLallemand.com

7 PROVEN STEPS

to How I Double My Bid Wins

LET THE GAMES BEGIN...

GC’s love to play this game and I am telling you now if you do not know so you are ready for it. They
will call you or when you are on the phone with them, they tell you that they want to work with you and
your number is close but you have to drop your number (Usually 2% to 5%)... Now the thing I want you
to remember is all this is for is to put 2% to 5% into their pocket of your money...

To play this game you have to understand that there is a good chance you are already the best choice
for them. If you do not let it get to you and you stay firm with your number, about 80% of the time we
never have to lower our number and still win the job…

All you have to say to them is wow that is a lot to drop, I already came into this with as low as I could
go but I am willing to work with you...

Deflect by talking if your scope matches with all the other bidders. Tell them you included everything
and then here is the fun part. Offer to give up something in the contract that the GC can do for you
instead of you doing it. It drops your number but allows them to take on the work for a cheaper cost
such as excavating is a big one we use and the beautiful part is most of the time we only have to give
them the cost of what we were planning to spend on the excavating meaning, we keep the profit and
overhead we had figured for that work and we just pocketed that money…

END RESULT:

We won the project using our relationship, our
persistence and walked away with more
money in our pocket than what we
were planning on making without lowering
our bid and still gained a GC who would like
to use us again in the future :)

Play the Bidding Game and WIN!...
using my Cheat Sheet:

7 PROVEN STEPS

to How I Double My Bid Wins

Copyright © 2017 MarkLallemand.com