Technical vs Commercial Bid Evaluation, Done Properly
Separate the two evaluations, in that order. Mixing them is how buyers pick the cheapest bid instead of the best value.
The most common evaluation mistake is opening the price envelope before the technical bid has been scored. It quietly anchors the entire process on cost.
Step 1 — Technical evaluation. Score every proposal against a pre-agreed rubric: scope compliance, standards, materials, guarantees, references, spares, service network, documentation. Reject non-compliant bids and remediable bids separately.
Step 2 — Commercial evaluation. Only on technically compliant bids. Normalize prices to the same currency, Incoterm, payment schedule and spares package. Compare total cost of ownership, not just capex.
Step 3 — Combined score. A weighted composite of technical and commercial, using the weights defined *before* bids arrived.
This sequence is slower on paper and faster in reality — it prevents the rework, disputes and change orders that follow every rushed award.
Frequently asked
70/30 to 60/40 in favor of technical is common for complex industrial equipment. For commodity items, the ratio can flip. Fix the weights before bids arrive.