How to Bid for HVAC Service Contracts

Read this blog for simple steps to writing and bidding on HVAC contracts.

🔍According to data from the Contractors Health and Safety Assessment Scheme UK (CHAS UK), the COVID-19 pandemic decreased overall HVAC business turnover by 70%.

The result? Just under half (45%) of stakeholders believe their company is under threat.

So, it’s never been more necessary to bid for larger contracts that will provide enough work in the long run.

But, if you usually deal with residential customers exclusively, taking the leap to bid on a commercial agreement for ventilation systems and installation services may be intimidating. 

To help you, we’ve put together this article to delve into how to bid for HVAC contracts in a few simple steps and streamline the whole process.

Let’s dive in…

3 STEPS TO SUCCESSFULLY BIDDING ON HVAC CONTRACTS

1. FIND APPROPRIATE SERVICE CONTRACTS TO BID ON

Before you can begin bidding on a contract, you must first find one you believe your business will be able to manage.

A good place to start is by looking on the Contracts Finder page of the GOV.UK website. Here, you can filter searches by sector. And, you can also see upcoming HVAC contracts and search for details of previous agreements.

You should then familiarise yourself with the three most common contracting procedures, which we’ll explain below.

OPEN PROCEDURE ✋

An open procedure means that:

• Anyone is permitted to submit a tender
• Clients cannot negotiate with bidders

There are no restrictions on when clients can use the above method, but they must evaluate all tenders they receive. And so, an open procedure is often used for straightforward procurements.

RESTRICTED PROCEDURE 🔐

A restricted procedure means that:

• Any interested parties can express their interest in bidding.
• A minimum of five suppliers must be invited to bid — provided enough candidates have applied — so there is genuine competition.
• Clients cannot negotiate with bidders, although they can clarify details and finalise terms.

Again, there are no restrictions on when clients can use the process above. Often, restricted procedures are suited to less stable markets where there are several competitors. 

COMPETITIVE DIALOGUE ⚔

A competitive dialogue means that:

• Companies shortlist candidates who respond to their advertisements, and only those selected are invited to bid.
• Clients are permitted to negotiate with bidders to seek better offers.

Often, competitive dialogue is used when a more tailored approach is needed. For example, if the client’s organisation cannot use a ready-made solution or product due to the complexity of its requirements.

2. GATHER ACCURATE DATA ABOUT YOUR BUSINESS

Once you’ve selected the HVAC contract work that you want to bid for, it’s time to gather some data. To justify your quote, you need factual evidence and accurate numbers — so you should calculate the following:

• Labour costs
• Prices of supplies
• Equipment usage costs
• Profit margin
• Average timescales to complete work

Remember, although the price is important, it’s not a race to the bottom. Your company’s experience, certifications, qualifications and track record are also crucial factors, so clients will be looking at more than just who can offer the lowest bid.

Key takeaway: Regardless of which of the three processes you follow, pooling together all the information on your business is a crucial step. It’s often one of the biggest challenges for service providers — but it doesn’t have to be. With HVAC field service software, you can obtain real-time, accurate data on anything from your inventory to finances in just a few clicks.

The end result? You’ll have all the details you need to write a successful bid without the headache of sifting through mountains of paperwork.

3. PUT YOUR BID TOGETHER

Begin your bid submission with a brief overview of your company’s qualifications and why you should win the service contract.

Then, explain how you will complete the job by answering each question concisely and sharing all the relevant information you sourced earlier.

💡Top tip: Don’t forget to submit any additional paperwork that the client has requested, such as proof of insurance, certifications, or a list of key personnel.

We’ve a few more top tips for you…

Whilst it’s beneficial to mention the positive aspects of your organisation, keep the focus on the client. The reader will want to know how you can help them with their specific requirements. Search your document for incidences of the word ‘we’ and consider how you can change them to ‘you’ instead.

Above all else, once you’ve double-checked your bid for errors, you must ensure that you submit it before or on the deadline. Failure to do so will likely cause the client to discount your submission entirely, meaning you’ve lost both valuable time and a potential customer. 

FIELD SERVICE MANAGEMENT TECHNOLOGY SPEEDS UP THE BIDDING PROCESS

Bid writing is a time-consuming process and, when there’s no guarantee that you’ll win the contract in the end, it can be tempting to simply continue attending to one-off jobs.

But, to survive in a post-COVID world, HVAC organisations will need to secure a steady pipeline of work, which you can achieve by winning service agreements. 

Fortunately, you can cut down your time writing bids by arming yourself with the vital data you need to impress potential clients. With field service management software, you can view details like:

✅ Who is working for you, where, and what qualifications they hold

✅ Your clients and their feedback 

✅ Your assets, equipment and stock

✅ Payments and outstanding invoices

✅ Your health and safety procedures 

The end result? You can eliminate the need to search through spreadsheets, paper documents and various systems for crucial information. Instead, you’ll have everything you need to write a persuasive bid, plus time left over to focus on other business-critical activities. 

WIN MORE HVAC CONTRACTS WITH BIGCHANGE

All the essential information you need at the click of a button.

BigChange’s field service management system gives you a 360˚ view of every account, contact site and contract. Deliver positive customer experiences at every level thanks to an array of dynamic product features. Want to find out more? See how BigChange can help you bid for more HVAC contracts. Arrange a freedemo today.