What is the winner’s curse? Whoever makes the biggest estimating mistake wins the job. First, the bad news: Successful companies rarely “buy work” through discounting, and profitability is not the reward for hard work, good intentions, or being a “good guy.” Now, the good news: Profitability is the reward for smart work. This means having good systems in place. Trying to minimize costs is always a goal when tendering contracts. And too often, contractors focus solely on price, adopting strategies and pricing that can kill the rewards of winning the contract. These tactics can go so far as to threaten the company’s financial health.
