How to Secure High-Value Contracts Without Competing on Price

Read time: 4.5 minutes

Welcome to the 46th issue of the Punchline Memo, specifically tailored for leaders in construction and the built environment!

Lowering your prices to win contracts might seem like the easiest strategy, but it’s also the fastest way to kill your margins and overwork your team for minimal profit.

Successful firms don’t compete on price; they compete on value. If you can clearly demonstrate why your business is the best choice, clients will pay more for certainty, quality, and reliability. Here’s how to position your firm as the go-to contractor without cutting your rates.

Why It Matters

The industry is more competitive than ever. Material costs are rising, labour shortages are pushing up wages, and businesses are under pressure to maintain profitability. Instead of racing to the bottom by slashing prices, the firms that win more work focus on:

• Positioning their business as the best choice, not the cheapest.

• Using social proof to showcase their expertise and reliability.

• Writing bids that clearly communicate value and not just numbers.

• Leveraging relationships for repeat work instead of relying on cold bidding.

If you want to win more high-value contracts while protecting your profits, this is where to start.

Deeper Dive: 4 Strategies to Win More Work Without Competing on Price

1. Position Your Business as the Best Choice

Clients don’t just want the lowest bid, they want certainty that the project will be delivered on time, on budget, and with minimal headaches. If you can prove your firm’s reliability, pricing becomes secondary.

• Highlight your specialisation – If you excel in a particular type of project (e.g., residential developments, commercial fit-outs, or sustainable builds), make it clear. Specialists command higher prices.

• Emphasise risk reduction – Clients fear delays, cost overruns, and poor workmanship. Show how your firm mitigates these risks through clear planning, strong project management, and quality control.

• Be the contractor they trust – Businesses will pay more to avoid the cheapest option turning into the most expensive mistake.

Example: A contractor in Birmingham started offering a "Guaranteed Timeline Clause" in bids, demonstrating confidence in their ability to deliver on time. This led to higher win rates without lowering prices.

2. Use Social Proof to Strengthen Your Bids

Clients don’t just want promises, they want proof. Testimonials, case studies, and referrals build credibility and remove doubts.

• Case studies – Include a one-page case study in your proposals showing how you solved a similar problem for another client.

• Client testimonials – If past clients are happy with your work, ask for a written testimonial or a short video review.

• Project photos – Before-and-after images can help potential clients see the quality of your work.

Pro Tip: Even a short testimonial like “[Your Company] kept our project on track despite supply chain issues. Their proactive approach saved us thousands in potential delays.” can make a big impact.

3. Create a Winning Proposal That Goes Beyond the Price

A proposal shouldn’t just be a quote, it should sell your value. Here’s what makes a bid stand out:

• Clear differentiation – What do you offer that competitors don’t? Highlight your experience, efficiency, or special processes.

• Project plan breakdown – Instead of just listing costs, explain how you’ll execute the project smoothly.

• Added value elements – Offer post-project support, regular progress updates, or an assigned project manager to give the client confidence.

Example: A London-based construction firm started including a ‘Problem-Solving Approach’ section in every proposal, outlining how they handle unexpected challenges. Their close rate increased by 22% in six months.

4. Leverage Relationships for Repeat Business

Relying on cold bidding is exhausting and unpredictable. The most profitable firms build long-term relationships with clients and win work before it even goes to tender.

• Stay in touch after projects – A simple follow-up email or site visit can lead to more work.

• Ask for referrals – If a client is happy, don’t be afraid to ask if they know someone who might need your services.

• Network with decision-makers – Developers, architects, and project managers are always looking for reliable contractors. Stay visible.

Pro Tip: Set a reminder to check in with past clients 3-6 months after project completion. A quick “How’s everything going?” message can lead to more business.

One Actionable Tip for This Week

Before submitting your next bid, add one extra value-driven element, whether it’s a timeline guarantee, a post-project support package, or a unique process that saves the client time. Clients don’t just pay for construction; they pay for peace of mind.

The Bottom Line

Winning work isn’t about being the lowest bidder, it’s about being the best choice. By demonstrating expertise, providing social proof, and building strong client relationships, you’ll win more contracts without sacrificing your margins.

Your next big project is waiting. Are you positioning your business to secure it?

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Stay tuned for more insights, updates, and a dash of humour in our upcoming issues. Until then, keep noticing, keep learning, and keep building!