Cost based bid tabulation method - A summary

Abstract

Bid tabulations of major process equipment are frequently performed by Hatch for major projects. Our clients want to understand and compare bids based on commercial and technical factors. Typically bids are vetted to ensure they meet the technical requirements in the bid specification and are then scored using a numerical ranking system. However, this method does not provide true bid comparison: the difference between a score of 1 and 2 could be a few percent different in price or scope but it could have a significant effect on the final numerical score which does not reflect the actual cost of that bid to the client.