Bid leveling glossary

Bid levelingNormalizing differently-formatted sub bids to a common scope to compare them apples-to-apples. Bid tabulationThe side-by-side sheet comparing every bidder line item by line item, with totals. Unbalanced bidA bid with distorted unit prices that keeps the total competitive while shifting risk. Front-loaded bidA bid that loads value into early-paid items like mobilization to improve sub cash flow. Scope gapA line item in your scope of work that a bidder didn't quote. Lowest responsible bidderThe lowest bidder who is also responsive and responsible — a public-bid standard. Best valueAn award standard weighing schedule, scope, performance, and risk — not just price. Pay itemA coded, individually-priced unit of work in a unit-price contract. Unit-price analysisComparing each bidder's per-unit price for a line item against the peer median to find prices too high or too low. Bid outlierA bid or line item that sits far from the field — a misread quantity, a typo, or a number that won't hold. Engineer's estimateThe owner's independent cost estimate, used as a benchmark to judge whether the bids received are reasonable. MobilizationThe lump-sum line for moving crews and equipment onto the site — an early-paid item that's easy to front-load. RetainageA percentage of each progress payment withheld until the work is complete. AllowanceA dollar figure carried for work not yet fully defined, reconciled later against actual cost. Alternate bidA separately-priced option to add or deduct a defined scope, so the owner can adjust the award to budget. AddendumA formal change to the bid documents issued before bids are due; every bidder must acknowledge it. Base bidThe price for the defined scope of work, before any alternates, allowances, or unit-price adjustments. Plug numberA placeholder a GC carries for a scope it hasn't received a firm sub bid on yet, so the estimate stays whole. Apples-to-apples comparisonComparing bids only after they're normalized to the same scope and units, so the totals measure the same work. Peer-median normalizationLeveling each bid against the median of the other bids in the package — no government pricing data required. Decision modeThe award standard applied when ranking leveled bids, from Lowest Responsible Bid to Best Value. Scope coverageHow completely a bid prices your scope of work, item for item — the inverse of a scope gap. Responsive bidderA bidder whose submission conforms to the requirements — acknowledged addenda, required forms, no material deviations. Bid bondA surety bond submitted with a bid guaranteeing the bidder will enter the contract if awarded.