Tips for Going Out to Bid
Tip #9, How Many Bidders Should There Be?
This is the 9th in a series of "ten tips" discussing going out to bid on electronic security systems brought
to you by the AVS Educational Academy. We would love to receive some feedback to see if you find the tips beneficial.
Please e-mail us if you get a chance.
You are installing a new electronic security system and you want to put the project out for competitive bid.
You already have an integrator servicing your account so you need to find another. Whether you use the yellow pages,
call the manufacturer or speak to one of your peers in the industry you identify another company to get you
second bid.
When the two bids are submitted you find a large discrepancy in price.
Guideline:
If bids are apples to apples, there shouldn't be more than a 5%-7% difference from the high bid to the low bid.
If the difference between bidders is larger than that, then in most cases someone didn't provide you with
something you asked for or they gave you something you didn't ask for.
Suggestion:
If you are going out for competitive bids, make sure that you entertain at least 3 - 5 bidders as opposed to only
two. This way if you have 2 or 3 grouped closely and one really low, you will know there is something suspicious
with the low bid. Also, if there are 2 or 3 grouped closely and one really high, you will probably be safe
eliminating the high bidder.
Also the tighter and more detailed the bid specification, the closer the bids will be.
Do your homework up front by creating a tight specification and identifying 3-5 bidders. You will be glad you did!
The Team AVS Educational Academy was created seven years ago to provide information to end users
on designing systems and selecting integrators. We currently offer a wide selection of courses
including Introduction to CCTV, Introduction to Access Control, Extreme Customer Service and Selecting an Integrator. Email our Sales Team for more information
Tip #1
Tip #2
Tip #3
Tip #4
Tip #5
Tip #6
Tip #7
Tip #8
Tip #9
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