MANAGEMENT / PLANNING
3 . Bidding too low Even if costs are estimated consistently and accurately at an early stage , dangers still lurk around every corner . Your company may notice that one of its teams is finishing a job elsewhere and assess that the new contract would be the perfect fit . The temptation might then arise to lower the bid to win the work and keep staff employed – calculating how you will make a profit from the work can always be done later – can ’ t it ? Additionally , ensuring that you include a profit margin on top of your project costs estimate might sound obvious , but it is surprising how often this simple calculation can be overlooked . Unless systems are clear on what costs the figures refer to , misunderstandings can arise , particularly when documents are being forwarded between different departments . Mistakenly assuming the overall cost includes the profit margin can be disastrous . Whether deliberate or by accident , bidding too low is easily avoidable through
Software can play a key role in reducing process time
26 November 2014