Bid Gap Calculator

Bid gaps indicate competitive tension and anomaly risk. This calculator sizes and classifies the gap.

Low bid

2nd bid

3rd bid

Gap 1st to 2nd

7.78%

Gap 1st to 3rd

13.33%

Assessment

Healthy competition

How the math works

Gap = (other bid − low bid) ÷ low bid × 100. Tight or wide gaps signal different risks.

Healthy bid gap 5-12% suggests competitive market with proper scope understanding. Tight gaps need verification — sometimes all bidders agree to pad. Wide gaps often mean scope was unclear.

How to Use

Enter low bid.
Enter 2nd bid.
Enter 3rd bid.
Read gaps and assessment.

Frequently Asked Questions

Healthy gap?

5-12% between 1st and 2nd in competitive markets. Under 3% = bids colluded or lowest bidder miscategorized. Over 20% = anomaly; verify scope understanding.

Low-bid anomaly?

If low bid is 20%+ below field average, verify scope. Low bidder may have excluded items, misunderstood spec, or plans to file change orders. Due diligence before acceptance.

Negotiating?

Use 2nd-bid as leverage. 'Can you match this scope at this price?' Often low bidder adjusts upward to protect profit while still winning award.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.