function calculateBidRate() {
// Get inputs by ID
var bidsSubmitted = document.getElementById('totalBidsSubmitted').value;
var contractsWon = document.getElementById('totalContractsWon').value;
var resultArea = document.getElementById('result-area');
var errorMsg = document.getElementById('error-message');
// Reset display
errorMsg.style.display = 'none';
resultArea.style.display = 'none';
// Validation logic
if (bidsSubmitted === "" || contractsWon === "") {
errorMsg.innerText = "Please enter values for both fields.";
errorMsg.style.display = 'block';
return;
}
var bids = parseFloat(bidsSubmitted);
var wins = parseFloat(contractsWon);
if (isNaN(bids) || isNaN(wins)) {
errorMsg.innerText = "Please enter valid numbers.";
errorMsg.style.display = 'block';
return;
}
if (bids <= 0) {
errorMsg.innerText = "Total bids submitted must be greater than 0.";
errorMsg.style.display = 'block';
return;
}
if (wins bids) {
errorMsg.innerText = "Contracts won cannot exceed total bids submitted.";
errorMsg.style.display = 'block';
return;
}
// Calculation Logic
var winRate = (wins / bids) * 100;
var lossRate = 100 – winRate;
// Calculate Ratio (1 win in X bids)
var ratioVal = 0;
if (wins > 0) {
ratioVal = bids / wins;
} else {
ratioVal = 0; // Infinite technically, but handle gracefully
}
// Update DOM elements
document.getElementById('winRateResult').innerText = winRate.toFixed(2) + "%";
document.getElementById('lossRateResult').innerText = lossRate.toFixed(2) + "%";
if (wins > 0) {
document.getElementById('ratioResult').innerText = "1 in " + ratioVal.toFixed(1);
document.getElementById('bidsNeededResult').innerText = Math.ceil(ratioVal);
} else {
document.getElementById('ratioResult').innerText = "0 wins";
document.getElementById('bidsNeededResult').innerText = "N/A";
}
// Show results
resultArea.style.display = 'block';
}
How to Calculate Bid Rate
Calculating your Bid Rate, commonly known in the construction and contracting industries as the "Bid-Hit Ratio" or "Win Rate," is essential for understanding the efficiency of your sales and estimation process. This metric tells you exactly how many proposals you need to submit to secure a single contract. By tracking this figure, businesses can optimize their estimation costs and focus on projects they are most likely to win.
The Bid Rate Formula
The calculation is straightforward. It compares the volume of successful contracts against the total volume of proposals submitted over a specific period.
Bid Rate (%) = (Total Contracts Won / Total Bids Submitted) × 100
For example, if you submit 20 proposals in a month and are awarded 5 contracts, your formula would look like this:
(5 ÷ 20) = 0.25
0.25 × 100 = 25% Win Rate
Calculating the Ratio (Frequency)
Many contractors prefer to view this metric as a ratio (e.g., 4:1). This tells you how many bids you must produce to get one win.
Bid Frequency = Total Bids Submitted / Total Contracts Won
Using the previous example: 20 / 5 = 4. This means you have a ratio of 4 to 1 (or 1 win for every 4 bids).
Why Tracking Bid Rate Matters
Understanding "how to calculate bid rate" is about more than just vanity metrics. It directly impacts your bottom line in three ways:
Overhead Recovery: Every bid costs money to produce (estimator salaries, site visits, software). If your bid rate is low (e.g., 5%), your overhead costs per won project are skyrocketing.
Pipeline Forecasting: If you know your bid rate is 25% and you need 4 new jobs next month, you mathematically know you need to submit 16 proposals to hit that target.
Niche Identification: You may find your bid rate is 50% for residential renovations but only 10% for commercial builds. This data helps you pivot to where you are most successful.
What is a Good Bid Rate?
A "good" rate depends heavily on the industry and the type of work:
General Construction (Public Tender): Often lower, around 10% to 15% (or 1 in 10), due to high competition and low-bid selection criteria.
Private Commercial Work: Typically ranges from 25% to 40% (1 in 4).
Negotiated Work / Design-Build: Should be much higher, often exceeding 50%, as the client has likely already qualified you.
How to Improve Your Bid Rate
If your calculation shows a low success rate, consider these strategies:
Qualify Leads Harder: Stop bidding on everything. Implement a "Go/No-Go" process to filter out jobs where you don't have a competitive advantage.
Follow Up: Many contracts are won simply because the contractor followed up on the proposal 2-3 days later to answer questions.
Analyze Losses: Whenever you lose a bid, ask the client for the bid tabulation. Were you too high? Did you miss scope? Use this feedback to refine your unit pricing.