Creating a Bid Calculation
A solid calculation is the foundation of every successful public tender bid. It determines not only whether you win the contract but also whether it will be profitable.
How does calculating public contracts differ from private ones?
Public procurement calculations differ from private sector pricing. Contracting authorities can request clarification on unusually low or high prices. Your calculation must be transparent and market-appropriate.
Which cost types belong in a bid calculation?
A complete calculation covers:
Direct costs: Materials, labor, equipment, subcontractors Overhead: Site overhead, general business costs Markups: Risk (2-5%), profit (3-8%), potential discounts
Which calculation methods are used for price determination?
- Markup calculation: Most common, percentage markups on direct costs
- Lump-sum calculation: Markups applied to total then distributed
- Contribution margin calculation: Strategic bids focusing on fixed cost coverage
Which bid calculation mistakes must I avoid?
- Mixed calculations (intentionally skewing individual prices)
- Missing subcontractor quotes
- Outdated material prices
- Forgotten ancillary costs (transport, disposal, site setup)
How do I calculate faster and more reliably in practice?
- Create calculation templates for recurring service types
- Conduct post-calculations on completed projects
- For construction tenders (VOB), special pricing rules apply
- Use Patterno BID for automated position calculation in construction
How do I prepare for a price clarification by the authority?
Be prepared for price clarification requests by keeping calculation bases ready, explaining efficiency advantages, and demonstrating full cost coverage.