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 A | Bid B | Bid C | |
|---|---|---|---|
| Bid price | $41,000 | $46,500 | $52,000 |
| Crane and rigging | Included | Included | Included |
| Permit | Excluded | Included | Included |
| Electrical disconnects | Not stated | Excluded | Included |
| 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
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
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
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
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
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
- The checklist is seeded for you. It comes from the trade package's inclusions and questions, and you can add rows by hand.
- Bidders answer the same questions. A bid form can ask each subcontractor to state Included or Not included for every item, with a short note, plus how long the price holds, how soon they can start and how long the work takes. There is no "not stated" choice, so a bid cannot skip an item.
- AI only suggests, and it must quote. It reads one bid's notes at a time and proposes a status only with the bid's own words. A suggestion without a real quote is dropped, and silence is never treated as "included".
- The estimator decides every cell and every allowance. ScopeMark has no cost data, so it shows the gap ("3 gaps and no allowance added yet: this price may be too low") and leaves the number to you.
- It flags when leveling changes the order. A banner tells you if the cheapest bid after leveling is not the cheapest bid on paper.
- Nothing is awarded for you. The sheet exports to Excel, and awarding the work is a separate step that only owners and project managers can take.
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.