Learning how to write a bid letter is crucial if you want to stand out among your competitors and land a potentially lucrative contract. While many business owners think that a bid letter simply consists of writing down a number and sending it in, much more should go into a bid letter if you want it to be taken seriously. Because it is a proposal to complete a service for a particular price, a bid must be prepared with the utmost accuracy and detail.
Why A Bid?
A company sends out bid requests to relevant vendors because employees of that company have a project they cannot do or don't have time to do. Some bids may be for private clients, public entities or for government contracts. The client is interested in seeing a reasonable price for excellent work and evidence that you can handle the job. With that in mind, craft your contractor bid letter with enough positive references to your work and skills, and the bid is more likely to go your way.
Parts Of A Bid Letter
Introduction. In the intro, tell the client about who you are and what your company does. Outline your years of experience in the field, and point out why your company is uniquely qualified to take on the job. Invite the reader to learn more of your past work via a portfolio or a list of references.
The Bid. Outline the specifics of the job, and show that you fully understand what is required to bring it to completion. If one aspect of the job is particularly unusual or intense, explain the reasoning and back it up with your experience. Deliver a total cost bid, but have it broken up into subcategories with more detailed explanations.
References. To give the client confidence in your abilities, provide a list of references for the client to contact. These should be past or current clients that you've done work for that is similar to the current bid. Include any ratings, certificates, awards or other recognition to highlight your experience and success.
Tips For Successful Bid Letters
Frequently, some companies or community governments send out invitations to bid. These often feature particular styles for submitting contractor bids, such as certain questions, conditions or exceptions to a regular job. Tailor the bid letter to fit the criteria mentioned in the bid invitation.
Always proofread the bid letter for spelling and grammar errors. Check all math for accuracy, as well as the bid outline itself. If you are unclear about a certain part of the project, make sure to clear that up before submitting a bid. Otherwise, you could be stuck making corrections to the submitted bid, revealing a rather unprofessional error.
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