Construction bidding mistakes in Africa can be avoided if companies take several precautions. It is worth remembering that construction bidding in Africa is so competitive that companies making it in this industry must have have exceptional competencies.
Many companies are focusing in Africa mainly due to its fast rising economy. However, most company’s find themselves not winning contracts in Africa due to constructions bidding mistakes. The following are top 4 Construction bidding mistakes in Africa that any construction company seeking to venture into the African market should avoid.
1. Ignoring indirect project costs
Although winning a construction tender in Africa is the aim of most bidders, some have lamented of loses or meager profits at the end of a contract. This is because they overlooked indirect costs of construction projects. For instance, the equipments you are using could be hired and not yours as a contractor. It is important to calculate all other expenses that go into a project.
2. Overestimating project cost.
Overestimating the cost of a project can deny you the chance to win a bid. For example, according to you the project will cost about US$800,000, then you quote like US$1.5Million. Another company estimates the project to cost US$640,000 and they quote US$800,000. Automatically, this strikes you off. Before you bid for a construction tender ensure that you study carefully the cost of the project. You may search what other bidders offered before.
3. Lagging behind technologically
Construction in Africa is now technology oriented. Remember that you are not the only one bidding for a contract and so technology can give you a competitive edge over other bidders. In africa today, contractors especially designers have employed Computer Aided Designs that are producing top notch structures. Some have invested in latest design software.
4. Ignoring other players
It is suicidal to ignore other vital players in the construction industry in Africa. It is very important to know what other players are doing in the market. Find out their strengths and weaknesses and see how you can improve on them. Remember that your goal is not only to enter the African market but also to have a competitive edge over other companies offering a similar product as yours.
The above top 4 construction bidding mistakes are not only true to the construction industry but also to others projects as well.