How Do You Compare Construction Quotes Fairly?

Compare what each price buys before ranking the totals. Put all quotations against the same drawings, specification, scope, assumptions and return date; then make differences visible in a comparison schedule.

What belongs in the comparison?

Record document revision, inclusions, exclusions, provisional sums, prime cost items where relevant, quantities, material alternatives, access and staging assumptions, testing, commissioning, programme, validity and terms. Identify which trade owns each interface. An apparent saving may be an omitted responsibility.

How do you make prices comparable?

Ask written questions on each unclear item and record the answer. Add an evaluated allowance for missing work where a price cannot yet be confirmed; keep that allowance separate from the tenderer’s submitted amount. Apply the same evaluation criteria to each offer. Do not treat an unpriced qualification as zero cost.

Does the lowest price win?

That depends on the client’s stated criteria. Capability, methodology, safety, programme and risk may affect value. For public procurement, follow the applicable probity and evaluation rules. For any project, document why the preferred submission meets the scope and where residual risk remains.

For instance, a cheaper services offer may exclude the controls interface and commissioning witness tests. Add those items to a separate evaluated adjustment and request a firm response. Show the client both the submitted price and the adjusted comparison, with assumptions clearly labelled.

Before award, transfer the final scope, clarifications and agreed changes into contract documents. A spreadsheet alone does not bind a subcontractor. Read about tender scope gaps or discuss quote levelling.

Sources and further reading

• Tasmanian Government — weighted tender evaluation for building works
• Victorian Department of Treasury and Finance — tender documentation