How to Review and Analyze Competitor Bids in Construction

Understanding how competitors price their work provides valuable insights for improving your own bidding strategy. By systematically analyzing bid results, you can identify patterns, adjust your estimating, and develop more competitive pricing approaches.

Why Competitor Analysis Matters

Calibrate Your Estimating

Bid analysis helps you:

• Identify if you're consistently high or low
• Spot areas where your costs differ from market
• Validate your productivity assumptions
• Refine your overhead and profit approach

Understand Market Dynamics

Learn about your competitive environment:

• Who competes for which work types
• How competitors price different scopes
• Market pricing trends over time
• Geographic pricing variations

Improve Win Rates

Better competitive intelligence enables:

• More strategic bid/no-bid decisions
• Targeted pricing adjustments
• Focused business development
• Smarter resource allocation

Sources of Competitor Bid Information

Public Bid Openings

Government and public agency bids are typically public:

• Attend bid openings in person
• Request bid tabulations after opening
• Check agency websites for results
• Submit public records requests

Bid Tabulation Requests

After award, request detailed results:

• Total bid amounts
• Unit prices (if applicable)
• Alternates pricing
• Subcontractor listings (some jurisdictions)

Industry Sources

Other sources of bid information:

• Construction news publications
• Plan room databases
• Industry association reports
• Networking with peers

Your Own Experience

Track every bid you submit:

• Your bid amount
• Winning bid amount
• Number of bidders
• Spread between bids

Creating a Bid Analysis System

Track Key Data Points

For each bid, record:

| Field | Example | |-------|---------| | Project name | City Hall Renovation | | Owner | City of Springfield | | Bid date | 12/15/2025 | | Your bid | $1,250,000 | | Winning bid | $1,185,000 | | Second place | $1,210,000 | | Number of bidders | 6 | | Spread (high-low) | $180,000 | | Your rank | 3rd | | Project type | Renovation | | Geographic area | Springfield metro |

Calculate Analysis Metrics

Percentage Difference:

(Your Bid - Winning Bid) / Winning Bid × 100
($1,250,000 - $1,185,000) / $1,185,000 × 100 = 5.5% high

Bid Spread:

(Highest Bid - Lowest Bid) / Lowest Bid × 100
Shows market uncertainty/variation

Competitive Position: Track your rank over time:

• Consistently 2nd-3rd? Close but not winning
• Always lowest third? May be underpricing
• Usually highest? Check your costs

Build Historical Database

Over time, your database reveals:

• Average spread by project type
• Your typical position vs. competitors
• Seasonal pricing patterns
• Individual competitor tendencies

Analyzing Bid Results

Single Bid Analysis

When reviewing a specific bid:

Understand the Spread:

• Tight spread (< 5%): Market agreement on cost
• Wide spread (> 15%): Scope interpretation differences

Identify Outliers:

• Very low bid: Possible error or buy-in strategy
• Very high bid: May not have wanted the work

Compare to Your Estimate:

• Where did you differ from winner?
• Were your quantities right?
• Was your pricing competitive?

Pattern Analysis

Look for trends across multiple bids:

By Project Type:

• Are you competitive on certain work types?
• Where do you consistently struggle?
• What's your sweet spot?

By Competitor:

• Who beats you regularly?
• Who do you beat consistently?
• What makes the difference?

By Size Range:

• Are you competitive at certain sizes?
• Does your overhead hurt on small projects?
• Can you compete on large projects?

Understanding Competitor Strategies

Pricing Patterns

Different contractors have different approaches:

Low Overhead Competitors:

• Lean operations
• Lower general conditions
• Competitive on straightforward work

Specialty-Focused Competitors:

• Premium pricing for expertise
• Strong on complex projects
• May not compete on commodity work

Volume-Driven Competitors:

• Thin margins, high volume
• Aggressive pricing to win work
• May sacrifice quality for price

Backlog Effects

Competitor pricing changes with backlog:

• Busy contractors bid higher
• Hungry contractors bid aggressively
• Capacity constraints affect pricing
• Seasonal patterns emerge

Strategic Bidding

Some bids aren't about winning:

• Courtesy bids for relationships
• Bids to establish presence
• Information-gathering bids
• Competitive intelligence bids

Applying Analysis to Your Bidding

Adjust Your Approach

Based on analysis, you might:

If Consistently High:

• Review productivity assumptions
• Check material pricing sources
• Evaluate overhead structure
• Consider equipment costs

If Consistently Low:

• Verify you're not missing scope
• Check your overhead recovery
• Evaluate profit targets
• Review subcontractor pricing

If Inconsistent:

• Improve estimating processes
• Better scope review
• More consistent methodology
• Enhanced quality control

Target Your Efforts

Focus on opportunities where you're competitive:

• Project types you win
• Size ranges that fit
• Geographic areas with success
• Owners who value your strengths

Strategic Pricing

Use competitive intelligence strategically:

• Know when to sharpen pencil
• Understand market pricing
• Identify differentiation opportunities
• Price risk appropriately

Competitor Intelligence Ethics

What's Acceptable

Legitimate competitive intelligence:

• Public bid results
• Published project awards
• Industry news and reports
• General market knowledge

What's Not Acceptable

Avoid unethical practices:

• Bid shopping (sharing sub prices)
• Collusion with competitors
• Obtaining confidential information
• Price-fixing arrangements

Legal Considerations

Antitrust laws prohibit:

• Agreements on pricing
• Market allocation schemes
• Bid rigging
• Information sharing that reduces competition

Building Competitive Advantage

Beyond Price

Analysis often reveals that winning isn't just about price:

• Qualification differences
• Relationship factors
• Reputation and experience
• Technical approach

Differentiation Strategies

Use analysis to identify differentiation:

• Where does expertise matter?
• When is schedule valued?
• Which owners value relationships?
• What non-price factors win work?

Continuous Improvement

Make bid analysis part of your process:

• Review every bid result
• Update your database consistently
• Share learnings with estimating team
• Adjust strategies based on data

Tools for Bid Analysis

Spreadsheet Systems

Simple but effective:

• Track all bids in central spreadsheet
• Calculate key metrics automatically
• Create charts and trends
• Filter by various criteria

Dedicated Software

Construction-specific tools:

• Bid tracking features
• Automated analysis
• Integration with estimating
• Report generation

Market Intelligence Services

External data sources:

• Bid result aggregation
• Market trend analysis
• Competitor tracking
• Pricing benchmarks

Conclusion

Systematic competitor bid analysis is a powerful tool for improving your bidding success. By tracking results, identifying patterns, and adjusting your approach, you can develop more competitive strategies and improve your win rate.

Start simple—track every bid you submit and the results you can obtain. Over time, patterns will emerge that guide better decisions about which projects to pursue and how to price them.

Remember: the goal isn't to be the lowest bidder on every project. It's to win profitable work that matches your capabilities. Competitor analysis helps you identify where you can compete effectively and price strategically to win work you can execute successfully.