How to level subcontractor quotes faster
Build the trade scope from the drawings first, break every quote into inclusions, exclusions and qualifications, map them to that scope, and price the gaps before you compare totals. Here is the method, and the allowances that most often go missing.
TL;DR: To level subcontractor quotes, write the trade scope from the drawings and specification first, break each quote into inclusions, exclusions and qualifications, map every line to the scope, and carry an allowance or seek a clarification for each gap before you compare totals. The quote with the lowest number is often the one missing an allowance. Doing this by hand takes most estimating teams days per trade, and software can now do the reading and matching in hours.
What levelling a quote means
Tender levelling (bid leveling in the US) is the work of bringing every subcontractor quote for a trade onto the same scope, so the prices can be compared fairly. Subcontractors price in their own format and to their own reading of the documents. Until each quote is measured against the same scope, the comparison is between different jobs.
The method
- Write the scope before the quotes arrive. Build a scope register for the trade from the drawings and specification, with the sheet or clause behind each line. This is the yardstick every quote is measured against.
- Break each quote down. Pull out what it includes, what it excludes, its provisional sums and its qualifications. Exclusions are often on the last page of a covering letter.
- Map every line to the register. For each scope item, mark each quote as included, excluded or silent. Silent items carry the most risk, because the subcontractor hasn't said either way.
- Price the gaps. For each exclusion or silent item, carry your own allowance or send a clarification asking the subcontractor to confirm. Record which one you chose and why.
- Compare the adjusted totals. Only now compare prices, each one adjusted to the full scope.
- Keep the record. The levelling sheet becomes the reference when the package is let and when a claim arrives later.
The allowances that most often go missing
- Testing and certification. Pile load testing, pressure testing, commissioning and certificates.
- Attendance and access. Cranage, scaffold, hoists and site amenities.
- Disposal. Spoil removal and waste classification.
- Interfaces with other trades. Work between two packages, such as screed between waterproofing and tiling, that each quote assumes belongs to the other.
- Revision drift. A quote priced to an earlier revision than the current set.
How long it takes, and how to speed it up
A senior estimator levelling a full tender by hand can allow 2 weeks across the trades. CIM Build's tender levelling reads each quote against the trade scope from the drawings and specification, lines the quotes up item by item, and flags the allowances only one quote carries. On a recent healthcare tender it levelled 6 trades in about 24 hours and found a six-figure dynamic pile load testing allowance that only 1 of the piling quotes had included. The estimator exports the comparison to Excel, checks it line by line, and decides how each gap is carried.
Frequently asked questions
What is the difference between tender levelling and bid levelling?
They are the same work. Tender levelling is the Australian and UK term, and bid leveling is the US term.
How many subcontractor quotes should I level for each trade?
Most builders aim for at least 3 compliant quotes per trade, so the comparison shows where one quote is out of line with the others.
Should I plug a gap with my own rate or ask the subcontractor?
Ask when the item is significant or unclear, and carry your own allowance when the tender deadline doesn't leave time for an answer. Either way, record the decision against the scope line so it can be checked later.
Can software level quotes without an estimator?
Software can read the quotes, map them to the scope and flag the gaps far faster than a person can. The estimator still decides how each gap is priced, because that decision depends on the job, the subcontractor and the risk the builder is prepared to carry.