A bid-hit ratio in residential construction is a measure of how successful a contractor is in winning jobs. It is calculated by taking the total number of bids submitted by a contractor for residential construction projects and dividing it by the number of projects won. The higher the bid-hit ratio, the more often a contractor is successful in securing contracts for residential construction projects.
This metric is important for contractors to monitor in order to ensure that they are staying competitive and optimizing their bidding process when submitting bids. A high bid-hit ratio indicates a successful contractor, while a low bid-hit ratio suggests that there might need to be changes made in order to increase their chances of winning projects in the future. It is also important to note that bidding on too few projects can result in high bid-hit ratio, but still not enough work secured for the contractor.
Monitoring this metric is essential for contractors to remain successful and profitable in their business.