I watch construction companies burn $10,000 on proposals for projects they’ll never win.

The math is brutal. Estimating, preconstruction, proposal design, executive reviews, etc. Real money and real time wasted to get what leadership calls “getting exposure”.

Here’s a better alternative: Send the client $1,000 with a note saying, “Consider us next time.”

You’ll save $9,000 and be infinitely more memorable than another generic proposal focused on your company instead of their actual problems.

The Relationship Blindness Problem

Construction companies bidding without client relationships can’t write buyer-focused proposals. They don’t know why the client needs the building. They don’t understand the pain points or past contractor disasters.

The proposal becomes a brochure about the contractor instead of a solution for the client. It’s essentially the same proposal any other contractor could (and does) submit.

What This Does to Your Team

Your estimating team knows the truth, as do your proposal and business development teams. They’re grinding through $10,000 worth of work knowing it’s essentially pointless.

It’s demoralizing because they know they have little to no chance of winning, and the proposal isn’t worth the effort.

Leadership doesn’t value their employees’ time and isn’t thinking logically about business development. They believe bidding is a numbers game where more bids equal more wins.

Quite the opposite is true.

The Selectivity Solution

Companies should be more selective in what projects they bid on and spend their time building relationships with clients first.

When a company shifts from “bid everything” to “build relationships first, then bid selectively,” their win rate, margins, and morale skyrocket.

The relationship-building activities cost far less than $10,000, but they have to be done before the proposal is released:

• Call them up, and take them to lunch.
• Go to association events they attend. Or invite them to a relevant industry event.
• Mail them relevant articles and “lumpy mail”.
• Connect on LinkedIn.
• Invite them to a webinar you’re hosting, or to be a guest on your podcast.
• Ask referral partners for introductions.

Research backs this approach.89% of firms now use seller-doers, indicating a clear industry shift toward relationship-based business development driven by client preference to meet people who would actually work on their projects.

The Mindset Shift

The core shift that must happen before any tactical changes will stick: Quality over quantity. Stop blind bidding on projects immediately. Develop a Go/No Go scoresheet that filters opportunities based on relationship strength and win probability.

I can provide proof from SMPS, Zweig, and Stambaugh Ness research, as well as market observations, that relationship-first strategies outperform scatter-shot bidding.

Yet this wasteful practice remains widespread because60% of firms researched by Stambaugh Ness cited a culture of “we’ve always done it that way.”

Adopt Relationship-Based Bidding to Boost Win Rates

For construction companies ready to break this cycle, create a list of 15-25 ideal clients to start building relationships with. Prioritize that over your next blind bid.

Your team will thank you. Your margins will improve. Your win rate and retention rate will climb.

The math works when you work the relationships first.