The construction industry has been approaching proposals all wrong, according to one technology executive who argues that successful bids aren’t about attractive layouts or compelling copy – they’re about demonstrating risk mitigation capabilities through data.
Nikhil Almeida, co-founder of construction AI platform Joist, notes that many construction firms approach proposals as marketing materials rather than as tools to convey risk management. He emphasizes that owners are primarily focused on understanding how a contractor will mitigate project risks, and that proposals become more effective when supported by detailed, data-driven evidence of the firm’s ability to manage those risks.
The Risk-First Framework
Almeida emphasizes that proposal teams should begin by assessing whether they are fully prepared to take on a project, ensuring they understand all requirements and can clearly demonstrate – using data – how they are equipped to manage or eliminate the associated risks.
Almeida notes that a data-driven approach aligns with what project owners prioritize when reviewing bids: demonstrating reliability and expertise. Owners issuing RFPs want construction firms to show, through concrete evidence, how they can address project complexities and minimize associated risks.
The approach represents a significant shift from traditional proposal strategies that emphasize company credentials and project portfolios without connecting them specifically to project risks.
Beyond the Owner: The Bonding Connection
Almeida emphasizes that risk evaluation also involves bonding companies, which must assess project risks before issuing bonds. General contractors, he explains, are fundamentally responsible for managing these risks, making risk communication essential for both owners and bond providers.
This creates a dual audience for risk communication: owners seeking confidence in project delivery and bonding companies evaluating financial exposure. Both require evidence-based demonstrations of risk mitigation capabilities rather than generic marketing messages.
The Data Imperative
The risk-first approach requires construction firms to maintain detailed records of past project challenges and solutions. “Have you done it before?” becomes a critical question that firms must answer with specific project data rather than general capabilities statements.
Almeida’s platform tackles this challenge by analyzing previous proposals to create detailed databases of project experience, staff expertise, and risk mitigation approaches. By reviewing proposal data, the system tracks employee involvement across projects, showing career progression and the variety of projects each team member has handled over time.
Industry Implications
The risk-focused approach may explain why some construction firms consistently win competitive bids while others struggle despite similar capabilities. Firms that effectively communicate risk mitigation through data-backed narratives may gain significant advantages in proposal evaluations.
Almeida emphasizes that the visual presentation or polish of a proposal is secondary; the essential focus for owners is understanding how the construction firm identifies and manages project risks.
The Strategic Shift
Almeida’s perspective suggests that construction firms should restructure their proposal processes around risk identification and mitigation rather than traditional marketing approaches. This might involve dedicating more resources to data analysis and less to graphic design, or training proposal teams to think like risk assessors rather than marketers.
Whether this risk-first approach gains broader adoption may depend on how quickly construction firms recognize the connection between data-driven risk communication and proposal success rates.
