One of the important tasks for the majority of the bidders in the bidding process is to increase the margin of profit as much as they can for every project they compete because if awarded the contract, the company could maximize the return of investment. The reason of maximizing the return of the investment is that the firm could take fewer projects while making higher margin of profit instead of having more jobs and spreading the resources in a thin way thus making the company vulnerable to unexpected risks while having less margin of profit.
After bid submission and opening, some of the companies perform their post-bid evaluation and others do not. Post-bid procedures and analysis has a valuable feedback to make the next project bidding more efficient and to have a greater chance to win the bid.
The effective way to measure and determine if the bidding is successful is to calculate how much money left in the table. This is simple to know by determining the difference of the bidders bid amount between the low bid and the second lowest bid. If the firm won the bid with the wide margin compare to the second lowest bidder, it is obvious that the company will not make money as much as he could and the project will be considered as high risk.
The first step in developing this type of bidding strategy is to obtain the bid results in the market segment you are in. In the public bidding where bid results read aloud publicly, it could be obtained and used easily as the basis for determining how much money left in the table. In private projects, bid results are very hard to obtain because the bid opening usually happen in a closed door meeting and is never disclosed to others unless you have a back door source.
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