Construction Bid Analysis Template

What a good bid analysis answers

• Who is actually low once the scope is equal?
• Where do the bids disagree by a lot on the same item?
• What did each bidder exclude, assume or qualify?
• What would it cost to close the gaps in the lowest bids?

Step 1: Normalize the scope

Break the bid into the same line items for every bidder. If a sub submits a lump sum, ask for a breakdown or map their number to your scope list. You cannot analyze what you cannot compare.

Step 2: Look for outliers

When one bid is far below the others on a line, they may have misread the drawings, missed an item, or be buying the job. A bid far above the others may include scope the rest left out. Both need a phone call before you decide.

Step 3: Price the gaps

For every exclusion, add what it would cost to cover it so each bid reflects the same scope. Often the cheapest bid on paper falls to second or third place after this step.

Step 4: Record the decision

Note why you chose the awarded bid and what clarifications were agreed. That record settles disputes later about what was and was not included.