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Bidding patterns of successful bidders

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We recently updated a study we first did in 2004 that analyzed the bidding patterns of successful bidders. The new report is available here (Bidding Pattern Report).

bidding pattern reportIn the course of reviewing the data, a practice I first learned from an old time estimator came to mind. Of the 2135 bids that are part of this study, 10 of them had two bids with exactly the same number. When I first started estimating the ‘rule' I learned from an old time estimator was to never submit a bid with the exact final number your calculations total up to. When we finally came to a total our practice was to deduct a few dollars to make sure we were submitting a slightly lower number if someone else had by chance come to the same number. Given the results of this study, it only happens once in every 200 or so cases that bids are identical but when it does it might be worth the $2 or $3 to gain that very slight advantage. The results of the new study will be released soon and will take a much more detailed look at what is happening in the competitive tendering market.

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