Bid Comparison Calculator

About the Bid Comparison Calculator

Compares two contractor bids by total price and price per unit of work, highlighting the better value.

How to use this calculator

1. Enter each contractor's bid total and the quantity or unit count it covers, such as square feet, hours, or items.
2. The calculator finds the unit cost for each bid by dividing the total by the number of units.
3. Compare the unit costs and the totals to see which bid gives the better value for the same amount of work.
4. Use the results to check whether a higher total bid might still be cheaper per unit.

The formula explained

The main calculation is unit cost, which tells you how much each bid costs for one unit of work. It is found by dividing the total bid amount by the number of units covered.

• total = the full bid amount in dollars
• units = the number of square feet, hours, items, or other units covered by the bid
• unit cost = the cost per one unit of work

Step by step method

1. Write down each bid total and the number of units included.
2. Compute each unit cost using \(\text{unit cost} = \frac{\text{total}}{\text{units}}\).
3. Compare the unit costs, and also check the totals if the bids cover the same scope.
4. Choose the bid with the lower unit cost when the work is the same, or adjust for differences if the scope is not identical.

Worked example

Problem. Contractor A bids \(\$4{,}800\) for \(1{,}200\) square feet of flooring. Contractor B bids \(\$5{,}100\) for \(1{,}350\) square feet. Which bid is cheaper per square foot?

1. For Contractor A, compute \(\frac{4{,}800}{1{,}200} = 4\), so the unit cost is \(\$4\) per square foot.
2. For Contractor B, compute \(\frac{5{,}100}{1{,}350} \approx 3.78\), so the unit cost is about \(\$3.78\) per square foot.
3. Since \(\$3.78\) is less than \(\$4\), Contractor B has the lower cost per square foot.

Tips and common mistakes

• Make sure you compare bids using the same unit, such as square feet, hours, or items.
• A lower total bid can hide a higher unit cost if the quantities are different, so always check both numbers.

Frequently asked questions