6 tips and examples for a good price comparison list in construction planning

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Why compare apples with oranges

The basis for a good price comparison list is a suitable bill of quantities. Normally, all services that are to be awarded to a trade are summarized in a bill of quantities. Costs are determined on the basis of this directory and cost control is carried out by means of a comparison with the cost accounting. A price comparison list is drawn up after the tender has been completed. Before a price comparison list is drawn up, the bids received for the trades are examined and evaluated. However, several challenges arise when evaluating different offers. 

In the following blog entry, we will show you six valuable tips on how to create a useful price list. 

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According to public procurement law, a bidder should be awarded a contract if its prices are reasonable. It is not just about the lowest price. No one is helped if the cheapest company commissioned goes bankrupt in the middle of the construction phase. 

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Our 6 tips:

As a rule of thumb, the bidder should be more than 25% lower than the next highest bidder. Therefore, when evaluating the price comparison list, pay attention to the percentage differences.

2. if you have agreed in advance to the reserve in a master cost estimate in the terms of the contract, the disclosure may provide further insight into pricing.

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When comparing prices, you should always be alert if prices have not been submitted. Here it must be clearly documented whether the position is free of charge or is compensated with other positions. Under certain circumstances, it may therefore be worthwhile not to include it directly in the comparison, but to consider it as a secondary offer.  

4. note the bidder prices in the price schedule with an appropriate explanation so that the bidder's evaluation can still be understood afterwards. An example of an appropriate explanation would be the following: Bidder XY: no price submission, bid remains in evaluation.

Depending on the form of award, manufacturers' specifications may be provided by the bidder. The specification of the bidder is often: Make XY or equivalent. If you cannot waive this, evaluate the bidder's manufacturer's specifications in an additional check and document them.

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When awarding a contract, it is not only the total price that is decisive; it may even be that the supposedly most favorable bidder turns out to be more expensive in the event of subsequent mass increases or supplements. Therefore, make sure that not only the total price is compared, but also each individual item. In other words, who has the most favorable or most expensive price for the item in question? Especially when using contingent positions or alternative positions, a comparison is indispensable. For these positions, only the unit prices are given and the total price is not included. Thus, when these positions are commissioned, your construction cost estimate may later turn out to be higher than previously expected.

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If you have the right nose when comparing bidder prices and compare the individual items rather than the total price, you can identify the best offers. 

Tenera's clever price mirror:

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We are even one step ahead and have automated the price comparison in Tenera. Our smart solution automatically compiles offers and compares prices and offers from various bidders in seconds. More information about Tenera's smart price mirror can be found here.

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Sources: bauplanung. de