When three drywall subs send three prices, the lowest number is not always the cheapest job. One may leave out finishing, another may skip cleanup, a third may be missing permits. Bid leveling in construction is how general contractors put every bid on the same scope before they decide who gets the work.
Why Bid Leveling Matters
- Avoids scope gaps that turn into change orders later.
- Protects your margin on lump sum and GMP contracts.
- Is fair to subs who priced the full scope.
- Gives a defensible record of why each sub was chosen, which owners and lenders may ask for.
Bid Leveling Step by Step
Step 1: Define the Scope Clearly
Send every bidder the same drawings, specs, addenda and a scope sheet listing what must be included.
Step 2: Collect Bids in One Format
Ask subs to price on your bid form, with base price, alternates, inclusions and exclusions.
Step 3: Build the Leveling Sheet
One row per scope item, one column per bidder. Mark each item as included, excluded or unclear.
Step 4: Add Plug Numbers
For each excluded item, add a plug: your own estimate of what that scope costs. Your quantity takeoff is the base for fair plugs.
Step 5: Check Math and Qualifications
Look for arithmetic errors, bad unit prices, short schedules, missing bonds or insurance.
Step 6: Clarify Before Award
Call the top bidders to confirm their scope. Update the sheet with what they confirm.
Step 7: Compare Leveled Totals
Choose on leveled cost, schedule and qualifications, not on the raw number.
Worked Example: Three Drywall Bids
| Item | Sub A | Sub B | Sub C |
|---|---|---|---|
| Base bid | $182,000 | $195,500 | $176,000 |
| Level 5 finish (plug $9,800) | Excluded: +$9,800 | Included | Excluded: +$9,800 |
| Final cleanup (plug $3,200) | Excluded: +$3,200 | Included | Excluded: +$3,200 |
| Corner bead and accessories (plug $6,500) | Included | Included | Excluded: +$6,500 |
| Permits (plug $2,500) | Included | Included | Excluded: +$2,500 |
| Leveled total | $195,000 | $195,500 | $198,000 |
Sub C looked $6,000 cheaper than Sub A on paper, but after adding $22,000 of missing scope it is the most expensive. Sub A and Sub B are only $500 apart, so schedule, past performance and clarifications decide the award.
What a Bid Leveling Sheet Includes
| Section | What Goes In It |
|---|---|
| Header | Project, trade, bid date, drawings and addenda used |
| Scope lines | Each item from the scope sheet, one per row |
| Bidder columns | Included, excluded or unclear for each item |
| Plugs | Price added for each excluded item |
| Alternates | Add or deduct prices, kept separate |
| Qualifications | Schedule, bond, insurance, safety record |
| Leveled total | Base bid plus plugs, plus or minus agreed corrections |
Our free construction bid template is a good starting point for the scope list.
Common Bid Leveling Mistakes
- Comparing raw prices without checking scope.
- Guessing plugs instead of pricing them from quantities.
- Ignoring addenda that some bidders did not acknowledge.
- Sharing one bidder’s price with another, which damages trust.
- Leveling too late, right before your own bid is due.
Subcontractors can use the same thinking: clear inclusions and exclusions make your bid easier to level and help your bid-hit ratio.
Frequently Asked Questions
What is bid leveling in construction?
Bid leveling is the process of comparing subcontractor or supplier bids on the same scope, adjusting for missing items, exclusions and errors, so the bids can be compared fairly before award.
Who does bid leveling?
Usually the general contractor or construction manager, often the estimator or project manager, before selecting subcontractors for each trade.
What is a plug number in bid leveling?
A plug is an estimated cost added to a bid for scope the bidder left out, so it can be compared with bids that include that scope.
Is the lowest bid always the best?
No. A low bid that excludes scope can become the most expensive once the missing items are added. Bid leveling shows the true cost of each bid.
What should a bid leveling sheet include?
One row per scope item, one column per bidder, the base price, inclusions, exclusions, plug values, alternates, schedule notes and a leveled total.
Level Bids Against Accurate Quantities
Mega Estimating provides trade-by-trade takeoffs and detailed estimates you can use as plug numbers and as a check on every sub bid. Mega Estimating is a U.S. construction estimating company that prepares quantity takeoffs and detailed cost estimates for residential, commercial and industrial contractors.
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