A contractor that is entering a similar but new field should plan a smaller profit to increase chances of winning the project.

Question

Quizplus · Accepted Answer

When entering a new field, the contractor may lack experience and expertise, which may make their bid less competitive compared to established firms. Planning a smaller profit margin may make the bid more attractive to the client and increase the chances of winning the project, which can help the contractor gain experience and establish a foothold in the new field.

A Contractor That Is Entering a Similar but New Field