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Terms that get confused for each other

Some pairs of bidding terms look interchangeable on a proposal and are not. Each page below resolves one pair, and explains what the difference costs when it is missed.

Allowance vs contingencyWhat is the difference between an allowance and a contingency?
An allowance is money for scope you know about but cannot yet price — the doors will have hardware, and the selection is pending. A contingency is money for scope you cannot yet name at all: unforeseen conditions, coordination nobody anticipated, the accumulation of small surprises. An allowance points at something specific; a contingency points at nothing. Read more
Alternate vs value engineeringWhat is the difference between an alternate and value engineering?
An alternate is scope priced separately at the owner's request, decided at award — the documents ask for it, and the owner chooses whether to buy it. Value engineering is a proposed change to the design, usually offered to cut cost after the bids come in over budget. An alternate was planned for; value engineering is a response to a number nobody liked. Read more
Bid leveling vs bid tabulationWhat is the difference between bid leveling and bid tabulation?
Bid tabulation is the table; bid leveling is the work that makes the table mean something. A tab sets every bidder side by side so the numbers can be read together. Leveling is the analysis that adjusts those numbers onto one common scope first — adding what a bidder omitted, deducting what it included from another package — so the columns are actually comparable. Read more
Exclusion vs qualificationWhat is the difference between an exclusion and a qualification on a bid?
An exclusion says what a bidder is not doing. A qualification says under what conditions its price holds. "Painting not included" is an exclusion — a boundary on scope. "Price assumes continuous access to the site" is a qualification — the price is real only while that assumption is. Exclusions change what you get; qualifications change whether the number survives. Read more
General conditions vs general requirementsWhat is the difference between general conditions and general requirements?
General conditions are costs; general requirements are rules. General conditions are what it costs a contractor to run the job — supervision, the trailer, temporary utilities, cleanup. General requirements are the Division 01 specification sections stating the administrative obligations of the contract: submittals, meetings, closeout, testing. One is money, the other is what must be done. Read more
NIC vs by othersWhat is the difference between NIC and "by others" on a bid?
Both mark work a bidder is not pricing, but they say different things about who does it. "NIC" — not in contract — means the work is outside this bidder's scope and says nothing about who else will do it. "By others" asserts that some other party is handling it. NIC leaves a hole; "by others" points at someone, and that someone is frequently a party who never agreed to it. Read more

Looking for a single term rather than a pair? The construction bid glossary defines fifty of them.

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