How to level subcontractor bids like for like

Bid leveling means putting every bid on the same checklist so you compare what each price actually covers. A bid that looks lowest often leaves something out, and leveling shows you how much that is worth.

The short version

Three subcontractors bid on the same package. The prices differ by more than 25%, so the cheapest looks like the obvious choice. Then you read the notes. One bid excludes the permit, another assumes someone else supplies the disconnect switches, and the third includes everything. Leveling is the work of turning those three bids into three comparable prices before you decide.

A worked example

This is an illustration with made-up numbers: three bids for the same rooftop unit replacement.

Bid ABid BBid C
Bid price$41,000$46,500$52,000
Crane and riggingIncludedIncludedIncluded
PermitExcludedIncludedIncluded
Electrical disconnectsNot statedExcludedIncluded
Allowance for the gaps+ $7,500+ $3,000$0
Leveled price$48,500$49,500$52,000

The ranking is the same here, but the gap between the first and the last has shrunk from $11,000 to $3,500. In other jobs the order flips, and then leveling has changed your decision. The allowances are the estimator's judgment, not a quote from the bidder, so they are worth checking before you rely on them.

How to level bids by hand

  1. 1

    Build one checklist

    List every item the price should cover: scope items, permits, equipment, temporary works, warranty, cleanup, hours of work. Start from the scope package so every bidder is measured against the same list.

  2. 2

    Mark each bid against it

    For each item mark Included, Excluded or Not stated. Keep the bidder's own words next to the mark so you can show where it came from.

  3. 3

    Price the gaps

    For every Excluded or Not stated item, add an allowance for what it will cost you to cover it, from your own price book or a quick call.

  4. 4

    Compare leveled prices

    Rank on the bid plus allowances, and note how far each is above the lowest. A bid with unresolved gaps and no allowance is not yet comparable.

  5. 5

    Ask before you award

    Where a gap is large, ask the bidder to confirm what they meant. A written answer is better than an assumption.

How ScopeMark does it

Leveling is private to owners and project managers because allowances and leveled prices carry money. A subcontractor never sees any of it.

Getting more bids to level

Leveling needs bids to compare. ScopeMark shows who a job was put to and where each stands: bid in, opened with no bid yet, not opened yet or no account yet. You can send a reminder to quiet bidders when you press send, limited to one a day and three in total per subcontractor, and the job page warns you when bidding is about to close with fewer than two bids.

Questions people ask

What is bid leveling?

Bid leveling is the process of adjusting subcontractor bids so they cover the same scope, then comparing the adjusted prices. It exposes items one bidder included and another left out.

Is the lowest bid always the best bid?

No. The lowest bid is often the one with the most exclusions. After you add allowances for what each bid leaves out, the order can change, which is the reason to level before you award.

Can AI level my bids?

AI can suggest whether a bid includes or excludes an item, but only by quoting the bid's own notes. The estimator reviews every cell and decides every allowance, and nothing is awarded automatically.

Who can see the leveled prices?

Only owners and project managers of the company that posted the job. Subcontractors never see leveling, allowances or other bidders' prices.

Does ScopeMark hold or move our money?

No. ScopeMark does not process payments between companies and subcontractors. The buyer pays directly, outside ScopeMark, and records the payment. ScopeMark's only revenue is its subscription.

Related