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Calcimator

Subcontractor Comparison Calculator

Sub bid analysis and scope gap identification.

About this calculator

Sub A and Sub B are scored through the exact same four-step formula, run independently on each side: start from the Base Bid, ADD Scope Gaps (the estimated cost of work the sub left out, which you will have to add back before comparing apples to apples), SUBTRACT Alternates / VE (any value-engineering credit the sub is offering), then ADD a Risk Premium computed as that sub's OWN base bid times their own Risk Premium (%). Because Sub A's inputs never appear in Sub B's formula and vice versa, nothing you enter for one sub changes the other sub's Adjusted Bid -- Sub A Scope Gaps only ever moves Sub A Adjusted Bid, never Sub B Adjusted Bid.

Bid Spread is simply the absolute gap between the two adjusted totals, while Savings (A vs B) keeps the sign: positive means Sub A is the cheaper adjusted bid, negative means Sub B is. Recommendation is read off that same savings figure with a deliberate dead zone -- differences under 0.5% of the higher adjusted bid are treated as effectively equal (Recommendation = 0) rather than declaring a winner over what amounts to rounding-level noise in a bid comparison.

Sub A Adjusted Bid ($)

$100,000.00

Sub B Adjusted Bid ($)

$115,000.00

Inputs

%
%

Comparison

Sub A Risk Premium ($)

$0.00

Dollar amount of risk premium applied to Sub A.

Sub B Risk Premium ($)

$0.00

Dollar amount of risk premium applied to Sub B.

Bid Spread ($)

$15,000.00

Absolute difference between adjusted bids.

Savings (A vs B) ($)

$15,000.00

Positive = Sub A is cheaper; negative = Sub B is cheaper.

Savings (%)

13.04%

Percentage savings of the lower bid vs the higher.

Recommendation (1=A, 2=B, 0=Equal)

1

1 = Sub A recommended, 2 = Sub B recommended, 0 = within 0.5% (effectively equal).

How to Use This Calculator
  1. Enter Sub A's and Sub B's base bid amounts from their submitted proposals.
  2. Enter estimated scope gap costs for each sub — items they excluded that you will need to add to their bid.
  3. Enter the value of any alternates or value-engineering credits each sub offered.
  4. Apply a risk premium percentage for any capacity, reputation, or bonding concerns with either sub.
  5. Read the adjusted bid for each sub, the bid spread, savings amount and percentage, and the recommendation for which sub to award.

How the result changes with Sub A Base Bid ($)

Sub A Base Bid ($)Sub A Adjusted Bid ($)Sub B Adjusted Bid ($)
50,000$50,000.00$115,000.00
75,000$75,000.00$115,000.00
150,000$150,000.00$115,000.00
250,000$250,000.00$115,000.00

What each input means

Sub A Base Bid ($)
Subcontractor A's base bid amount.
Sub A Scope Gaps ($)
Estimated cost of items Sub A excluded from their bid.
Sub A Alternates / VE ($)
Value of alternates or value-engineering items offered by Sub A.
Sub A Risk Premium (%)
Risk adjustment for Sub A (capacity, reputation, bonding concerns).
Sub B Base Bid ($)
Subcontractor B's base bid amount.
Sub B Scope Gaps ($)
Estimated cost of items Sub B excluded from their bid.
Sub B Alternates / VE ($)
Value of alternates or value-engineering items offered by Sub B.
Sub B Risk Premium (%)
Risk adjustment for Sub B (capacity, reputation, bonding concerns).

What each result means

Sub A Adjusted Bid ($)
Sub A bid normalized for scope gaps, alternates, and risk.
Sub B Adjusted Bid ($)
Sub B bid normalized for scope gaps, alternates, and risk.
Sub A Risk Premium ($)
Dollar amount of risk premium applied to Sub A.
Sub B Risk Premium ($)
Dollar amount of risk premium applied to Sub B.
Bid Spread ($)
Absolute difference between adjusted bids.
Savings (A vs B) ($)
Positive = Sub A is cheaper; negative = Sub B is cheaper.
Savings (%)
Percentage savings of the lower bid vs the higher.
Recommendation (1=A, 2=B, 0=Equal)
1 = Sub A recommended, 2 = Sub B recommended, 0 = within 0.5% (effectively equal).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Sub A Base Bid ($) = 100000, Sub A Scope Gaps ($) = 0, Sub A Alternates / VE ($) = 0, Sub A Risk Premium (%) = 0 = 8 input(s) provided
  2. Calculate Sub A Adjusted Bid
    Sub A Adjusted Bid = bidA + scopeGapA - alternatesA + riskPremiumA
    100000 = $100,000
  3. Calculate Sub B Adjusted Bid
    Sub B Adjusted Bid = bidB + scopeGapB - alternatesB + riskPremiumB
    115000 = $115,000
  4. Calculate Sub A Risk Premium
    Sub A Risk Premium = bidA * (riskPremiumPctA / 100)
    0 = $0
  5. Calculate Sub B Risk Premium
    Sub B Risk Premium = bidB * (riskPremiumPctB / 100)
    0 = $0

Engine last updated . Checked against 1 independently-derived test — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.

Frequently Asked Questions

Why does Sub A Scope Gaps not change Sub B Adjusted Bid?

Each sub's Adjusted Bid is computed entirely from that sub's own four inputs -- base bid, scope gaps, alternates, and risk premium. Sub A Scope Gaps only appears inside the Sub A Adjusted Bid formula, so it never crosses over to affect Sub B Adjusted Bid, Sub B Risk Premium, or any other Sub B figure. The two sides are calculated completely independently and only compared at the final step.

How is Risk Premium calculated, and why can two subs with the same Risk Premium (%) get different dollar amounts?

Risk Premium ($) is that sub's OWN Base Bid multiplied by their OWN Risk Premium (%) -- it scales off each sub's individual bid amount, not a shared baseline. So a Sub B entering a $110,000 bid at a 5% risk premium adds more dollars of risk premium than a Sub A entering a $100,000 bid at that same 5%, even though the percentage is identical for both.

Why does Recommendation sometimes read 'Equal' even when the adjusted bids aren't exactly the same?

Recommendation treats any gap under 0.5% of the higher adjusted bid as effectively a tie (Recommendation = 0), rather than declaring a winner over a difference that small. Bid Spread will still show the small dollar gap between the two Adjusted Bids, but Recommendation intentionally doesn't chase differences that thin, since bid comparisons at that scale carry more estimating uncertainty than the gap itself.

What's the difference between Bid Spread and Savings (A vs B)?

Bid Spread is always a positive number -- the absolute dollar gap between the two Adjusted Bids, regardless of which sub is cheaper. Savings (A vs B) reports that same gap but keeps the sign: positive means Sub A's adjusted bid is the lower (cheaper) one, and negative means Sub B's is. So the two outputs always share the same magnitude but only Savings (A vs B) tells you which sub actually comes out ahead.

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