What Is Bid Leveling? How to Compare Construction Bids Apples to Apples
Bid leveling is adjusting several construction bids to the same scope so you can compare them fairly. Every bidder gets the same drawings, but the bids come back different: one includes cleanup, another excludes it; one carries an allowance, another leaves the item out. Leveling lines them up in one sheet, prices in anything missing with a plug number, and compares the adjusted totals. The point is to find the most complete, lowest-risk bid, which is often not the lowest number.
| Leveling sheet row | What you record for each bidder |
|---|---|
| Base bid | The number on the proposal |
| Inclusions | Each scope item, checked off as in or out |
| Exclusions | Everything the bidder says is "by others" or not included |
| Allowances | Amounts carried for items not yet chosen |
| Plugs and adjustments | Estimated value added for missing scope |
| Adjusted total | The number you actually compare |
The common layout: one column per bidder, one row per scope item. Alternates stay separate from the base bid so they do not skew the totals.
Comparing contractor bids on a build-out? Send us the bid set and we will price the same scope. Licensed in Oregon (CCB #198582) and registered in Washington (L&I MODERNI888R7). Call (360) 326-2747.
Why raw bid totals mislead
Two electrical bids on the same drawings can be far apart for reasons that have nothing to do with efficiency. One may price fixtures and the other may exclude them as owner-supplied. One may include the permit, temporary power and cleanup; the other may list all three as exclusions on page two. Compared raw, the second bid looks like the bargain. Leveled, it may be the expensive one.
The sources we checked put it the same way: a low total that is low because of missing scope is a future change order. Gaps caught while leveling get priced before the contract is signed. Gaps missed get priced later, when you have less leverage.
How to level bids, step by step
- Start with a clear bid request. Same drawings, a written scope, the allowances and alternates you want priced, and the exclusions you will not accept.
- Put every bid in one format. One column per bidder, one row per scope item.
- Check scope before price. Mark each item included, excluded or unclear. Read the fine print, footnotes and cover letters, where qualifications hide.
- Plug the gaps. Where a bidder left out required work, add an estimated value to that column so every total covers the same job.
- Look past the number. Compare schedule assumptions, bonds, insurance and licensing, payment and warranty terms, and the bidder's record on similar work.
- Ask in writing. Send each bidder specific questions about its gaps, and get revised pricing in writing before you award.
Where the gaps usually are
Scope gaps cluster where one trade's work meets another's. Firestopping is the classic case: plumbing, mechanical and electrical all run through fire-rated walls, and each can reasonably assume someone else priced sealing the holes. Other common misses are mobilization, temporary facilities, testing and commissioning, cleanup and disposal, permits, and premium materials or overtime the schedule quietly requires.
What an owner can level
Contractors level their subcontractor bids trade by trade. As an owner, you can do the same with general contractor bids on your build-out: send every GC the same scope list, line them up, and ask about anything one bid covers and another does not. The contract type changes what you see. A lump sum gives you one number; on cost-plus or CMAR with a GMP, the books are open and you can see the trade bids behind the price. If the leveled totals still come in over budget, that is the moment for value engineering, not after award. More terms are in our commercial construction glossary.
Frequently asked questions
What is bid leveling?
Adjusting several bids to the same scope so they can be compared fairly. Each bid is checked for what it includes, excludes and assumes, missing work is priced in, and the adjusted totals are compared instead of the raw numbers.
What is a plug number?
An estimated amount added to a bid that left out required work, so the comparison reflects the full scope. It is not a change to the bidder's proposal, just a way to compare like with like until the bidder confirms or prices the item.
Why is the lowest bid not always the best?
A low number can be low because work is missing, excluded or vaguely described, or because the schedule is unrealistic. Those gaps tend to come back as change orders, so the lowest bid can end up costing more.
Where do scope gaps usually hide?
At the edges between trades. Firestopping where pipes, ducts and conduit pass through rated walls is a classic example: each trade can reasonably assume another one priced it. Cleanup, temporary facilities, testing and permits are other common misses.
Who levels the bids?
The general contractor levels subcontractor bids for each trade. An owner can level the general contractors' bids the same way: same scope list, same columns, written questions to each bidder before award.
The bottom line
Bid leveling turns a stack of different proposals into one fair comparison: same scope, plugs for anything missing, adjusted totals side by side. Check scope before price, watch the trade boundaries, and settle every gap in writing before award, because a missed gap comes back as a change order.
Our Mercantile Village landlord work in Lake Oswego ran as construction manager at risk, ahead of the 3,790 square foot Thirsty Caterpillar build-out. Send us your bid set.
Comparing bids?
Send us the drawings and the bids you have. We will price the same scope and show what ours includes.
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