Winning Work in Alternative Procurement Markets

In our second blog about alternative procurement strategy and implementation, we talked about the importance of developing a customer-first focus. Since the selection criteria often focuses on company and staff qualifications, contractors need to differentiate themselves by building trusted client relationships and not waiting until requests for proposals go out.

Most of the contractors seeing success with alternative procurement have shifted to a business development mindset and are actively pursuing projects. But what happens when that strategy turns to winning work or capturing business?

The difference comes in the submission stage. General contractors are still submitting proposals based on their best-price bids to win design-bid-build jobs. Construction manager/general contractor (CMGC), construction management at risk (CMAR) and progressive design build (PDB) companies focus their bids on qualifications and staffing, excluding prices at the beginning.

Once they’re on the short list, successful firms then send their proposed project teams to meet with the owner and the selection committee to answer questions, discuss price and further develop their relationships.

“Once you get on the short list, keep in mind any of those firms have the capability to perform the work,” said Rich Rantala, president of R2 Client-Centric. “How are you going to not only create the differentiation necessary to distance yourself from the competition but also connect with the owner as well?”

The answer to that question begins with your proposal.

Step 1: The Proposal

The selection process for a CMGC, CMAR or PDB begins with a request detailing selection criterion and typically includes ratings that are weighted based on the greatest need. These ratings may vary depending on the client. Public agencies may place more emphasis on the scores while private owners may not. Most proposals will ask for general company information, project definition and understanding, safety records and other proposal submission requirements.

An example of elements that may be scored and their total points includes:

Proposed Project Team 40 pts Relevant Project Experience 20 pts Project Data Sheets 20 pts Project Approach 40 pts Preconstruction Phase 40 pts Innovative Value Generation 10 pts Site Logistics and Plan 10 pts Safety Plan 10 pts Sustainability Plan or Other 10 pts

Respondents who spent time with the owner discovering what matters most will submit different narratives than those who did not, and will offer proposals that focus solely on complying with the request. The client-centric respondent will focus on the areas deemed most important. Combine that understanding of the project with the relationship that has been developed, and you have a powerful combination to differentiate yourself from the competition.

Step 2: The Short List

Next the project owner ranks the proposals to determine which firms will be invited to present. Sometimes proposal scores will factor into the final award and other times they’re only used to determine who will be able to submit a proposal.

Presentation criteria typically includes:

• Venue Logistics
• Duration
• Elements
• Technology
• Scoring
• Team

The team usually involves the project sponsor, project manager, preconstruction manager, superintendent, sustainability/environmental engineer, safety manager and others who can address project specifications that are critical to the owner.

Step 3: The Presentation

The key to winning the presentation comes down to making sure you have the right team members in the room and that everyone is comfortable with the format. It may sound obvious but making sure you practice and evaluate the presentation before heading into the room will be critical to winning the work.

Capture Leadership: The business development manager or pursuit leader demonstrates that the company understands the strategic direction and articulates the tactical steps to differentiate their proposal from the competition.

Message Development: This often involves the proposal manager and a graphics technician to use models, animation or other technology to illustrate the proposal.

Speaker Training: It’s important to set aside time to talk about the timing, presentation and other logistics with everyone on the team. While these pitches can be new for those not used to timed, formal presentations, setting the expectations and assigning roles will help ensure a smooth presentation and that questions are answered by the appropriate expert.

Rehearsals and Coaching: Be sure to allocate additional time to practice. Having the business development manager, who has the most complete understanding of the owner’s key issues, is critical to the review. You should also have colleagues who can offer constructive feedback to help the entire team prepare.

Firms that pursue clients instead of chasing projects have a higher rate of successfully winning work. Developing the understanding of the owners’ mindsets, goals and important criteria enables firms to address needs instead of simply checking off parts of the proposal request.

Effective positioning and training your teams to convey your messages will help you consistently capture new work.