FIND A CONTRACTOR BUYER'S GUIDE
BECOME AN INDUSTRY PARTNER
MCAA Logo
MEMBER LOGIN JOIN
NEWS
Join Us For The 75th Anniversary Midyear Meeting Sep 7-11 ↗

How is Your 'Bid-Hit' Ratio?

Words: George HedleyBid-Hit ratio is the rate at which you successfully bid or propose on projects. For example, a 5 to 1 Bid-Hit ratio says for every five jobs you bid or propose on, you are awarded one. Do you know what your bid-hit ratio is? Do you track it? How do you use it, and what should it be?

Whenever I present my "Estimating and Bidding Strategies That Work" program at conventions or companies, I ask everyone what their Bid-Hit ratios are. In almost every case, including estimators, sales people and business development managers, most don't have a clue what their ratios are. In a survey I conducted of more than 2,000 construction and design-build companies, less than 6 percent knew and tracked theirs ratios. To me, this is like driving a car blindfolded without a clue where you are headed.

Keeping Track

To determine how many jobs to bid, what type of jobs to go after, and which customers give you the highest percentages of their work, you must know your bid-hit ratio. Track it monthly, quarterly and yearly. Track it for all types of projects you bid on and each customer you bid to. Also, track by job type: large versus small, local versus out-of-town, commercial versus industrial or residential, bid versus negotiated, plans and specifications versus design-build, or new construction versus remodel. Another item to track is the number of competitors you bid against on each project.

As you study your bid-hit ratio trends, you'll find certain customers who give you more work than others. You'll find certain kinds of jobs you handle better. You'll also discover, when competing against too many competitors, that your success ratio isn't the best it could be. Simple tracking will help you determine which jobs and customers to bid to. It will also help you determine when to eliminate a project type or customer from your plate, and when to seek out better opportunities to invest your estimating dollars.

The Right Ratio

I have surveyed and asked more than 5,000 construction and subcontracting companies to determine what a good bid-hit ratio should be. The results vary from 1.5 to 1, to a worst-case of 35 to 1. Which is the best ratio for you? Obviously, you want the lowest the ratio possible. But, the right ratio is what works for your company.

Companies who negotiate lots of work tend to have lower bid-hit ratios. They also require additional overhead expense, marketing, pre-construction services, customer development and public relations. Companies that obtain most of their work from public works or bid against a long list of competitors tend to have higher bid-hit ratios. But, they usually have more estimators, which offset the marketing dollars needed. The trade-offs usually balance out at the bottom line.

'Bid-hit' Ratios Revealed

See how you compare to the averages observed around the country:

General ContractorsBid-Hit Ratio
- Public Works 6 : 1 to 10 : 1
- Private Bid Work 4 : 1 to 6 : 1
- Negotiated Work 2 : 1 to 4 : 1
- Design-Build 2 : 1 to 4 : 1

SubcontractorsBid-Hit Ratio
- Public Works 7 : 1 to 11 : 1
- Private Bid Work 4 : 1 to 6 : 1
- Negotiated Work 3 : 1 to 4 : 1
- Design-Build 3 : 1 to 4 : 1

The right bid-hit ratio is what works for your operation. A ratio of 35 to 1 is too high, and 1 to 1 is nearly impossible in today's competitive market. The highest reasonable ratio for public works should not exceed 10 or 11 to 1. A ratio that is higher than 11 to 1 will cost your company too much in estimating expenses and won't provide a reasonable profit. For private work, I recommend striving for a 4 to 1 ratio or less. This can be accomplished by pre-qualifying your customers before you bid, to insure you are on the right bid lists.

The key is to track and know your bid-hit ratio. With an accurate history of your results, you can determine which road you want to take. Keep your eyes open and focuses on your destination, look for ways to improve your bid-hit ratio, and hit your target, every time.
 0
Achieving Consistent Mortar Mixes: Key to Successful Masonry Projects
August 2025

Consistency is the cornerstone of quality masonry. A uniform mortar mix is critical for the structural integrity and durability of any project, from a simple brick wall to an intricate stone design. When mortar lacks consistency, it can lead to weak joint

Steve Wheeler
MAP Partner
Read More
What’s In Your Data Backup Strategy?
August 2025

Your business handles plenty of critical data, and losing it could result in operational downtime, financial losses, and a damaged reputation. For businesses owners, a robust data backup strategy can help you stay resilient and competitive in the fuel mar

Patrick Cunningham
Safety Library
Read More
Facial Recognition for Masonry Companies
August 2025

Masonry companies face a unique set of challenges. Managing a mobile workforce across multiple job sites requires precision and accountability. CrewTracks recognizes this need and has introduced an innovative facial recognition feature designed to streaml

Erin Koets
MAP Partner
Read More
2025 SkillsUSA National Competition Recap
August 2025

The 2025 SkillsUSA National Competition served as a critical platform for evaluating the future of the masonry industry. The event provided a clear look at the talent pipeline, industry-wide collaboration, and technological advancements poised to shape th

Justin Stengel
News and Events
Read More