Every estimate you send costs time and money, but only some of them turn into work. Your bid-hit ratio tells you how many. It is one of the simplest numbers a contractor can track, and one of the most useful: it shows whether you are bidding the right jobs and whether your estimates are winning them.
How to Calculate Your Bid-Hit Ratio
By Number of Bids
Bid-hit ratio (count) = jobs won ÷ bids submitted × 100. Use the same period for both, such as the last 12 months.
By Dollar Value
Bid-hit ratio ($) = dollar value won ÷ dollar value bid × 100. This shows whether you win the jobs that matter most.
| Measure | Calculation | Result |
|---|---|---|
| Bids submitted | 12 months | 40 |
| Jobs won | 12 months | 6 |
| Ratio by count | 6 ÷ 40 | 15% |
| Total value bid | 12 months | $8.5 million |
| Total value won | 12 months | $1.2 million |
| Ratio by dollars | 1.2 ÷ 8.5 | 14.1% |
The Real Cost of a Low Bid-Hit Ratio
Every bid takes estimator hours, whether you win or not. Suppose each bid takes 20 hours at a $45 burdened rate:
| Item | Calculation | Amount |
|---|---|---|
| Cost per bid | 20 hrs x $45 | $900 |
| Cost of 40 bids | 40 x $900 | $36,000 |
| Estimating cost per job won | $36,000 ÷ 6 wins | $6,000 |
That $6,000 has to come out of the margin on the jobs you win. Raising your win rate, or lowering the cost of each bid, goes straight to profit. See how to estimate labor costs to work out your own burdened rate.
Why Contractors Lose Bids
- Bidding everything: jobs outside your trade, size or area rarely win.
- Missing scope: a gap in the takeoff makes the bid look low but risky, or forces a high contingency.
- Late or rushed bids: errors creep in when the estimator is overloaded.
- No relationship: the GC or owner does not know you, so price is the only thing they compare.
- No follow-up: many bids are never discussed after they are sent.
- Unclear exclusions: during bid leveling, unclear bids are often pushed down the list.
How to Improve Your Bid-Hit Ratio
1. Use a Go / No-Go Checklist
Before you start a takeoff, score the job on trade fit, size, location, client history, competition and schedule. Bid only the jobs that pass.
2. Make Every Takeoff Complete
Measure every item from the drawings and list clear inclusions and exclusions. A detailed construction estimate is easier for the GC to compare and trust.
3. Follow Up Within 48 Hours
Call or email after the bid date. Ask where you stand and what would make your number stronger.
4. Learn From Every Loss
Ask for the bid results and note how far off you were and why. Patterns show which job types to stop chasing.
5. Free Up Estimator Time
Outsourcing takeoffs lets your team spend time on client relationships and on the jobs most likely to win. See how to bid a construction job for the full process.
What to Track Every Month
| Metric | Why It Matters |
|---|---|
| Bids submitted | Workload and pipeline |
| Jobs won (count and $) | Bid-hit ratio both ways |
| Win rate by job type and client | Shows where you are strongest |
| Estimating hours per bid | Cost per bid and per win |
| Reason for each loss | What to fix next |
Frequently Asked Questions
What is a bid-hit ratio in construction?
It is the share of bids a contractor wins. Divide the number of jobs won by the number of bids submitted over the same period, then multiply by 100 for a percentage.
What is a good bid-hit ratio?
It depends on the market and how you bid. Open public bids with many bidders usually win less often than negotiated or invited private work. Track your own ratio by job type and aim to improve it over time.
Should I track bid-hit ratio by count or by dollars?
Track both. The count shows how often you win; the dollar ratio shows whether you win the bigger jobs or only the small ones.
How can I improve my bid-hit ratio?
Bid fewer, better-fit jobs, build relationships with the owners and GCs you bid to, follow up on every bid, and make sure your takeoffs and pricing are accurate and complete.
Can outsourcing estimating help my win rate?
Yes, when it frees your team to follow up with clients and lets you bid only the jobs you are most likely to win, with accurate numbers on each one.
Bid More Jobs Without Hiring More Estimators
Mega Estimating prepares accurate takeoffs and detailed cost estimates so your team can bid the right jobs, follow up, and win more of them. Mega Estimating is a U.S. construction estimating company that prepares quantity takeoffs and detailed cost estimates for residential, commercial and industrial contractors.
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