Should I include the cost of losing bids?

Not in this figure, but do it in your annual planning. Divide total annual bid cost by wins to see the real cost per contract.

Is an external bid writer worth it?

It depends on your win rate and contract size. Add the fee as a direct cost here and test it in the tender ROI calculator.

How many hours does a typical bid take?

Small service tenders commonly run from 20 to 60 hours. Framework applications and complex works bids can be several times that.

Free tender toolkit

Bid Cost Calculator

Most small firms have no idea what a tender submission costs them, because the time is absorbed into evenings and weekends. This calculator makes it visible: hours by rate, an overhead uplift, and any cash costs on top.

Writing hours

Pricing hours

Review and sign off hours

Fully loaded hourly rate

Overhead uplift

Direct costs

Total hours: 41.0
Labour plus overhead: £2,214
Total cost to bid: £2,364

Estimate only, not financial or regulatory advice. This is an estimate only, provided for general guidance. It is not tax, accounting, financial or legal advice. Check any figures with a qualified professional before relying on them.

How it works

Enter the hours split across writing, pricing and review, since review time is routinely underestimated.
Apply your fully loaded internal hourly rate, which should include employer national insurance and pension.
Add an overhead uplift as a percentage to cover the office, software and admin that support the bid.
Add direct costs such as printing, courier, translation or an external bid writer.

Worked UK example

A firm spends 25 hours writing, 10 pricing and 6 reviewing at 45 an hour, with 20% overhead and 150 of direct costs.

Total hours: 41.
Labour: 41 x 45 = 1,845.
Overhead at 20%: 369.
Direct costs: 150.

A total bid cost of 2,364, which is the figure to weigh against the contract on offer.

Understanding your result

Once you know your average bid cost you can set a sensible annual bidding budget and a minimum contract size worth chasing. If a bid costs you 2,000 and you win one in four, each win carries 8,000 of bidding cost. Contracts that cannot absorb that comfortably are the wrong contracts.

Frequently asked questions

Should I include the cost of losing bids?: Not in this figure, but do it in your annual planning. Divide total annual bid cost by wins to see the real cost per contract.
Is an external bid writer worth it?: It depends on your win rate and contract size. Add the fee as a direct cost here and test it in the tender ROI calculator.
How many hours does a typical bid take?: Small service tenders commonly run from 20 to 60 hours. Framework applications and complex works bids can be several times that.

Related calculators

Tender ROI calculatorWeigh the cost and time of bidding against the profit on offer and your win chance.Open Tender win probability calculatorScore fit, experience, price position and incumbency to get a rough win likelihood.Open Tender deadline calculatorCount working days to a tender deadline and set clarification and review dates.Open

Cut the hours, not the quality

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