What is Bid Leveling?
Bid leveling is the process of analyzing and adjusting contractor proposals so they can be compared on an “apples-to-apples” basis.
It doesn’t mean changing the bids, it means reviewing each proposal carefully, clarifying scope gaps, and standardizing costs so you can make an informed decision about which contractor offers the best overall value.
Why Bid Leveling Is Important:
Ensures Fair Comparisons: Without bid leveling, one contractor may look cheaper simply because they left out an important scope item that others included. Bid leveling highlights these gaps so you’re not misled by a low number.
Reduces Risk of Cost Overruns: If a scope item is missing from the selected contractor’s bid, it often reappears later as a change order. Bid leveling helps catch those gaps early, saving money and avoiding surprises.
Improves Transparency: Owners, developers, and project managers gain confidence knowing that all bidders are being evaluated against the same criteria.
Strengthens Contractor Relationships: When questions or clarifications arise during the leveling process, contractors appreciate the opportunity to explain their assumptions. This sets the tone for clearer communication during the build.
How to Level Bids Effectively:
Create a Master Scope Checklist: Before reviewing bids, outline all the work items you expect, materials, equipment, labor categories, and allowances.
Compare Each Bid Against the Checklist: Note which items are included, excluded, or unclear in each proposal.
Standardize Allowances: If contractors are carrying different assumptions (e.g., $20/sf flooring allowance vs. $30/sf), adjust them in your analysis so you’re comparing evenly.
Ask Questions Early: Reach out to bidders for clarification on vague or missing items. It’s better to resolve these issues now than during construction.
Document Adjustments: Keep a spreadsheet or bid tabulation form that shows the “leveled” cost comparison, along with notes on each adjustment. This record will be invaluable if questions come up later.
Bid leveling is not just a formality, it’s a safeguard for your budget, schedule, and peace of mind. By ensuring you’re comparing proposals accurately, you reduce risk and make smarter decisions for your project. This is directly related to the RFP process. Check out our blog on RFPs.
At SPCG we provide clients with clear, detailed bids and assist with the leveling process to make sure nothing slips through the cracks. Our goal is to deliver transparency and confidence from the very first proposal to the final walk-through.