Short answer: Award the lowest leveled price from a bidder who can do the work, not the lowest number on a proposal. Level every bid against one scope sheet, plug what each bid leaves out, and compare the leveled prices. Then check each bidder's qualifications, schedule, safety record, and bonding before you award. In one finishes package leveled in Consight, the low bid finished second after leveling, 24% above the new low.
Key takeaways
- The low base bid in this case excluded 10 of 33 scope lines, the most of any bidder.
- Its plugs came to 31% of the low base bid, more than twice any other bidder's.
- The plugs alone did not flip the rank: base bid plus plugs still left Bidder A below Bidder B.
- After leveling, Bidder B had the low price and Bidder A, the original low, ranked second.
- Price is one test. A responsible award also weighs scope, schedule, safety, and bonding.
What happened in this finishes package?
This case is one Finishes (Division 09) package on a project in the South Census region. The package had three bidders and a scope sheet of 33 line items. Consight read 10 bid and package files, 28 pages in all. The case records no names, amounts, or dates, so every price below is a percentage of the low.
The bids as they came in
Bidder A had the low base bid. Bidder B came in 44% higher, and Bidder C came in 71% higher. On base bids alone, Bidder A looked like the clear award.
| Bidder | Base bid, % of the low base bid | Rank on base bid |
|---|---|---|
| Bidder A | 100% | 1 |
| Bidder B | 144% | 2 |
| Bidder C | 171% | 3 |
What each bid left out or left unclear
Bidder A, the low bid, excluded 10 of the 33 scope lines, the most of the three. Its excluded lines and stated exclusions included bonds and cleanup or disposal. Bidder A left no line unclear.
Bidder B excluded 4 lines and left 1 line unclear. Bidder C excluded 9 lines and left 1 line unclear. For each of them, the lines left out or unclear and the stated exclusions covered bonds, testing or inspection, cleanup, and hazardous materials. Bidder C's also covered overtime or after-hours work.
| Bidder | Lines excluded | Lines unclear | Kinds of work it left out or unclear |
|---|---|---|---|
| Bidder A | 10 | 0 | Bonds; cleanup, dumpsters, or disposal |
| Bidder B | 4 | 1 | Bonds; testing or inspection; cleanup, dumpsters, or disposal; hazardous materials |
| Bidder C | 9 | 1 | Bonds; testing or inspection; cleanup, dumpsters, or disposal; overtime or after-hours work; hazardous materials |
All three bidders left bonds and cleanup out or unclear. So none of the base bids priced the full scope sheet, and the base bids did not price the same job.
What the plugs added
A plug is the estimator's price for scope a bidder missed, excluded, or underpriced. Plugs bring every bid up to the same scope. In this package, Bidder A's plugs came to 31% of the low base bid. Bidder B's plugs came to 14%, and Bidder C's to 3%.
The count of excluded lines did not predict the size of the plugs. Bidder C excluded 9 lines and drew plugs of only 3% of the low base bid. The case does not record what each plug priced.
The ranks after leveling
After leveling, Bidder B had the low price. Bidder A ranked second, 24% above Bidder B. Bidder C stayed third, 72% above Bidder B. The spread from low to high barely moved, from 71% to 72%, but the low bidder changed.
| Bidder | Rank on base bid | Leveled price, % of the low leveled price | Rank after leveling |
|---|---|---|---|
| Bidder A | 1 | 124% | 2 |
| Bidder B | 2 | 100% | 1 |
| Bidder C | 3 | 172% | 3 |
The two tables use different bases. Base bids are a percentage of Bidder A's base bid. Leveled prices are a percentage of the low leveled price, which is Bidder B's.
Why the plugs alone do not explain the leveled prices
In Consight, the leveled price is the base bid plus plugs, corrected quantities, and scope the estimator added. The case records the plugs and the final leveled prices, but not the other adjustments.
Base bid plus plugs alone would still leave Bidder A low: 100% plus 31% stays under Bidder B's 144% plus 14%. So the plugs did not flip the rank on their own, and the case does not record which adjustments did. The case shows only the order of events: the low base bid left out the most work, drew the largest plugs, and ranked second after leveling.
How do you pick the sub with the most value, not the low number?
Award the lowest leveled price among the bidders who pass your checks on scope, schedule, safety, and bonding. Federal contracting rules set the same test for prime contracts. FAR 9.103 says the government awards only to responsible contractors and need not award to the lowest offer. It warns that award "based on lowest evaluated price alone can be false economy" if the contractor later defaults or runs late.
Use the checks below for each bidder still in the running. Run them in this order, so you spend checking time only on bids that can win.
| What to check | What to ask the bidder for | Why it matters |
|---|---|---|
| Scope coverage | Its leveled price on your scope sheet, with every exclusion and unclear line resolved | In this case, the base bids did not price the same job |
| Qualifications | Its assumptions, scope limits, and schedule conditions | A qualification can hand risk back to you |
| Schedule | Crew size, material lead times, and current workload | A sub that cannot staff the job delays the trades behind it |
| Safety | Its experience modification rate (EMR) and OSHA 300 logs | A poor record predicts more injuries and claims |
| Bonding and finances | A surety letter with its bonding capacity, and financial statements | A sub that fails mid-job leaves you to finish its work |
| Past performance | References and similar completed projects | A record of finished work shows how the bidder handles yours |
Start with the leveled price
Compare leveled prices, never base bids. A base bid prices only what the bidder chose to include. In this case, the lowest base bid excluded the most lines. You only see the true low once every bid covers the same scope. Our guide on how to compare subcontractor bids walks through leveling step by step.
Ask why a low bid is so low
A low bid far below the next one needs a reason. The AGC and NASFA guide to best value selection suggests asking for an estimate breakdown when the low price sits more than 15 percent below the next. In this case, Bidder B's base bid sat 44% above Bidder A's. That gap should send you to Bidder A's exclusions and qualifications before you call anyone.
Check that the bidder can do the work
Price only counts if the bidder can finish the job. FAR 9.104-1 lists what a responsible contractor needs. It needs enough money, the ability to meet the schedule, a good performance record, and a good record of integrity. It also needs the people, controls, and equipment to do the work.
You can collect most of this on one form. ConsensusDocs 721 is a standard subcontractor qualifications form. It asks for project experience, bonding capacity, licensing, financial health, key personnel, and safety programs. Send it before bid day, so the answers are on file when the bids arrive.
Read the safety record
Ask each bidder for its EMR and its OSHA 300 logs. The EMR compares a firm's workers' compensation losses to similar employers. NCCI, the workers' compensation rating bureau, says a modification of 1.20 predicts losses 20% worse than the average employer in the same class. OSHA's recordkeeping rule requires many employers with more than 10 employees to keep the 300 log. A bidder that will not share either one tells you something.
Confirm bonding
A bond from a strong surety is a second check on the bidder. The Surety and Fidelity Association of America says sureties run "an extensive underwriting process to prequalify a contractor." Ask for a surety letter that states the bidder's bonding capacity. On federal work, check the surety against the Treasury's Circular 570 list of approved companies.
In this case, all three bidders left bonds out or unclear. If your job needs a bond, the plug for it belongs in every leveled price. The bidder's ability to get the bond matters as much as its cost.
Decide how much weight price gets, and write it down
Give price less weight as the work gets riskier, and write down why you passed over a lower price. Federal buyers follow this rule: FAR 15.101 gives past performance more weight as risk grows, and FAR 15.101-1 requires a documented rationale for a higher-priced award. No rule binds your private award the same way. A short note in the bid file still answers the owner, your project manager, or a losing bidder who asks.
Do not shop the low number
Do not take one bidder's price to another to drive it down. AGC, ASA, and the Associated Specialty Contractors call bid shopping "abhorrent" in a joint statement AGC still publishes. Bid shopping costs you the trust of the subs whose numbers you need on the next bid day. If a leveled price looks high, ask the bidder to confirm its scope, not to match a competitor.
How does Consight show this before you award?
Consight reads each proposal and sorts its statements into inclusions, exclusions, alternates, and qualifications. Level Bids then matches each bid's items to your scope lines. It marks each line Included, Excluded, or Needs review (unclear) for each bidder. You add a plug for each gap at your own price. Connie, Consight's assistant, does not invent a plug value.
The scope sheet then shows each bidder's base bid beside its leveled price. When a bid leaves too much unclear, you can request a bid revision from the bidder. When you pick a bidder, soft award pushes that price to the project total. Consight does not price a qualification's risk or judge a bidder's safety or bonding. Those calls stay with you.
How we measured
Every figure here comes from one recorded case, 09-finishes-eeccd646, a Finishes package leveled in Consight. Consight's AI made the coverage calls on the 33 scope lines, marking each included, excluded, or unclear. An estimator reviewed 30 of those calls and changed all 30 of them. A change may correct the call itself or only its price or note, so it does not mean the AI got all 30 wrong.
The other calls stand as the AI made them. The plugs and leveled prices are the ones saved in Consight for the package.
The case rounds every percentage to a whole number. Base bids and plugs are percentages of the low base bid. Leveled prices are percentages of the low leveled price. The case holds no names, amounts, or dates, and this article adds nothing from outside the case about the package.
Frequently asked questions
Should you always award the lowest leveled price?
No. Award the lowest leveled price from a bidder who passes your checks on schedule, safety, bonding, and past work. When two qualified bidders sit close on leveled price, the stronger record can win. Write down why you chose it.
What does "lowest responsible bidder" mean?
The lowest responsible bidder is the lowest price from a bidder able to do the work. FAR 9.104-1 defines responsible as having the money, schedule, record, integrity, and resources to perform.
Why did the low bid lose its place after leveling?
In this case, the low base bid excluded 10 of 33 scope lines, more than either other bidder. Its plugs came to 31% of the low base bid, the largest of the three. The plugs alone did not flip the rank. The case records each bidder's base bid, plugs, and leveled price, but not what else moved the leveled price. After leveling, Bidder A ranked second, 24% above Bidder B.
What should a subcontractor prequalification form ask for?
A prequalification form should ask for project experience, bonding capacity, licensing, financial health, key personnel, safety programs, and references. ConsensusDocs 721 covers each of these in one standard form.
Where Consight fits
Consight is the preconstruction workspace built around this kind of work—from understanding project documents and building scopes to collecting bids, leveling proposals, reviewing risk, and documenting the final award.
Put it into practice on your next project.
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