Understanding how owners evaluate bids gives you a competitive edge. While some projects are strictly lowest-price awards, many use best value criteria that consider factors beyond cost. This guide explains common evaluation criteria and how to position your bids to score well.
Types of Bid Evaluation
Lowest Responsive, Responsible Bidder
Traditional public procurement approach:
How it works:
- Lowest price wins (if compliant)
- Must meet minimum requirements
- Pass/fail on qualifications
- Limited discretion
Evaluation focus:
- Is the bid responsive? (Meets all requirements)
- Is the bidder responsible? (Can perform)
- What's the price?
Best Value Selection
Increasingly common approach:
How it works:
- Multiple factors considered
- Price is important but not only factor
- Scoring system used
- More evaluator discretion
Evaluation focus:
- Qualifications and experience
- Technical approach
- Past performance
- Price
- Other specified criteria
Qualifications-Based Selection
Common for professional services and design-build:
How it works:
- Qualifications evaluated first
- Price negotiated with top-ranked firm
- Quality emphasized over cost
- Used when expertise is critical
Common Evaluation Criteria
Price/Cost
Always a factor, but weighted differently:
Low-bid projects:
- Lowest compliant price wins
- Price is the only discriminator
- Must meet technical minimums
Best value projects:
- Price is one weighted factor (often 30-50%)
- Evaluated against other criteria
- Reasonable cost more important than lowest
Price evaluation methods:
- Lowest price gets maximum points
- Others scored proportionally
- Or: Pass/fail with price range
Technical Approach
How you'll execute the project:
Evaluated elements:
- Understanding of scope
- Construction methodology
- Risk identification and mitigation
- Quality control approach
- Innovation and value engineering
How to score well:
- Demonstrate clear understanding
- Address project-specific challenges
- Show logical execution plan
- Identify and mitigate risks
Experience and Past Performance
Your track record matters:
Evaluated elements:
- Similar project experience
- Project references and outcomes
- Performance on previous contracts
- Client satisfaction ratings
How to score well:
- Highlight relevant projects
- Provide strong references
- Show successful outcomes
- Address any past issues honestly
Team Qualifications
Who will do the work:
Evaluated elements:
- Key personnel experience
- Certifications and licenses
- Team stability and commitment
- Local knowledge/presence
How to score well:
- Assign experienced personnel
- Show relevant project history
- Commit key team members
- Demonstrate adequate resources
Schedule
Your time proposal:
Evaluated elements:
- Realistic completion date
- Schedule understanding
- Milestone achievement approach
- Acceleration capability
How to score well:
- Propose achievable schedule
- Show logical sequencing
- Address critical path
- Demonstrate resource adequacy
Safety
Your safety program and record:
Evaluated elements:
- EMR (Experience Modification Rate)
- OSHA recordable rates
- Safety program quality
- Site-specific safety plan
How to score well:
- Maintain strong safety record
- Document safety program
- Address project-specific hazards
- Show commitment to safety
Financial Capability
Your ability to fund the work:
Evaluated elements:
- Financial statements
- Bonding capacity
- Banking relationships
- Cash flow capability
How to score well:
- Provide complete financial information
- Demonstrate adequate bonding
- Show financial stability
- Address any concerns proactively
Small Business / Diversity
Increasingly important factor:
Evaluated elements:
- SBE/MBE/WBE participation
- Local business involvement
- Workforce diversity
- Mentor-protege programs
How to score well:
- Maximize diverse participation
- Document commitments
- Build relationships with certified firms
- Meet or exceed goals
Understanding the Scoring Process
Weighted Criteria Example
Typical best value scoring:
| Criterion | Weight | |-----------|--------| | Price | 40% | | Technical Approach | 25% | | Past Performance | 20% | | Team Qualifications | 15% | | Total | 100% |
How Points Are Assigned
Adjectival ratings:
- Outstanding: 90-100 points
- Good: 70-89 points
- Acceptable: 50-69 points
- Marginal: 25-49 points
- Unacceptable: 0-24 points
Or numerical scoring:
- Detailed rubric for each criterion
- Points assigned per element
- Combined for total score
Calculating Best Value
Example calculation:
| Bidder | Price Score (40%) | Technical (25%) | Performance (20%) | Team (15%) | Total | |--------|-------------------|-----------------|-------------------|------------|-------| | ABC | 36 | 23 | 18 | 13 | 90 | | DEF | 40 | 20 | 16 | 12 | 88 | | GHI | 32 | 24 | 19 | 14 | 89 |
Responsiveness Requirements
What Makes a Bid Responsive
A responsive bid:
- Submitted on time
- Uses correct forms
- Includes all required elements
- Acknowledges all addenda
- Contains no material deviations
Common Responsiveness Issues
Automatic disqualification:
- Late submission
- Missing bid bond
- Unsigned bid form
- Missing required forms
- Failure to acknowledge addenda
Possible waiver (minor issues):
- Missing non-essential information
- Formatting variations
- Minor clerical errors
- Information available elsewhere
Protecting Your Responsiveness
- Read requirements carefully
- Use provided forms
- Complete all fields
- Submit before deadline
- Double-check everything
Responsibility Determination
What Makes a Bidder Responsible
A responsible bidder has:
- Adequate financial resources
- Ability to comply with schedule
- Satisfactory record of performance
- Satisfactory record of integrity
- Necessary qualifications and facilities
Demonstrating Responsibility
Provide documentation:
- Financial statements
- Equipment list
- Personnel qualifications
- Reference contacts
- Insurance and bonding
Address concerns:
- Explain any past issues
- Show corrective actions
- Provide additional assurance
- Be transparent
Preparing for Evaluation
Pre-Bid Preparation
Understand the criteria:
- Read evaluation factors carefully
- Note weights and priorities
- Identify discriminating factors
- Plan your response
Gather information:
- Compile relevant project experience
- Update team resumes
- Collect performance ratings
- Prepare reference list
Proposal Development
Address each criterion:
- Respond to every factor
- Provide requested information
- Be specific and detailed
- Show evidence
Optimize for scoring:
- Focus effort on heavily weighted factors
- Meet minimums on all factors
- Differentiate where possible
- Show value beyond requirements
Reference Management
Choose references wisely:
- Select relevant project contacts
- Verify current contact information
- Notify before listing
- Coach on key messages
Maintain relationships:
- Deliver quality work
- Resolve issues professionally
- Stay in touch with past clients
- Thank references for support
After the Award
Request a Debrief
Win or lose, request feedback:
- Understand how you scored
- Learn what worked
- Identify improvement areas
- Build relationship
Improve for Next Time
Analyze results:
- Compare your scores to winner
- Identify gaps
- Review feedback
- Adjust approach
Strengthen weaknesses:
- Build relevant experience
- Develop team capabilities
- Improve safety record
- Enhance processes
Conclusion
Understanding evaluation criteria helps you prepare stronger bids. Whether it's lowest price or best value, every bid is evaluated against specific standards. Knowing those standards lets you:
- Focus preparation appropriately
- Present qualifications effectively
- Avoid responsiveness problems
- Score well on evaluated factors
Read each solicitation carefully to understand how your bid will be judged. Then prepare a response that demonstrates your strengths against those specific criteria. The contractors who consistently win aren't just the cheapest - they're the ones who understand what owners want and prove they can deliver it.
ConstructionBids.ai includes evaluation criteria and selection methods in project listings, helping you understand how each bid will be judged and prepare accordingly.
