How to rank contractor bids with estimating and bidding software

For government agencies, once a capital, infrastructure, or maintenance project is approved, the next step is managing the details. Each project component must be thoroughly broken down to estimate costs and allocate resources effectively. However, tasks like preparing engineering estimates, publishing bid packages, advertising bids, and tracking responses can quickly become time-consuming and error-prone. Without a streamlined process for bid comparisons, estimators, bid managers, procurement specialists, and contract managers often face increased complexity, leading to inefficiencies and missed opportunities. Implementing an estimating and bidding software solution is essential to overcoming these challenges.

Here's how a construction estimating software solution helps:

1. Streamline the engineering estimates process

The system enables engineers to create detailed estimates using actual costs, historical data, or a combination of both. By applying inflation to suggested prices, government agencies can ensure their estimates reflect current market conditions while including item details, base bids, and additives/options.

2. Get an accurate comparison of all bids

Bid tabulation features help agencies automatically calculate, compare, and rank each bid against the engineer’s estimate and all other bids received. It gives them a summary of all bids based on percentage over low bid, percentage over high bid, percentage vs. average bid, and percentage vs. engineer’s estimate. This creates a clear, consistent, accurate comparison, allowing estimators, bid managers, procurement specialists, and contract managers to make data-driven decisions while minimizing the risk of cost overruns.

3. Run a best-practice advertising and bid letting process

Estimating and bidding software supports a best-practice advertising and bid letting process with a carefully controlled open bid process. This ensures compliance and guarantees government agencies complete information.

4. Leverage historical data for predictive pricing

Historical data is crucial for understanding cost drivers and minimizing risk when creating engineer estimates for large-scale projects. An estimating and bidding software solution consolidates past project details into one platform, including subcomponents and unit

prices. It also uses linear regression to calculate material prices based on historical trends. This data analysis facilitates informed decision-making, validates cost projections, and enhances estimate accuracy. Model replication further strengthens the process by ensuring consistency and reliability across projects.

5. Create detailed bid packages

This solution gives you the capability to create detailed bid packages that include project items and documents easily. This will help government agencies provide contractors with a comprehensive view of the project, enabling them to create accurate estimates.

6. Advertise and solicit bids via e-bidding

Having an online bidding portal allows for efficient bid advertising and management, giving government agencies full control over the sections each contractor can bid on.

7. Eliminate paperwork and save time

The bidding process can be optimized by enabling contractors to securely submit their insurance, bond, and other certifications online, reducing unnecessary paperwork. Additionally, an estimating and bidding software solution can help you write contracts and change the status of bids within the same system to minimize data errors and eliminate retyping.

8. Facilitate better communication with contractors

Customized invitations to the online portal and automated notifications and reminders as the closing date approaches will help optimize communication with contractors.

Streamline and rank the bidding process with Aurigo

Masterworks Estimation and Bidding software solution equips engineers with the tools, context, and predictive pricing data to create accurate estimates faster. Aurigo’s solution simplifies the entire pre-award phase, ensuring that construction projects are set up for success.