Unfortunately...there's huge factors that aren't revealed by totals in bids.
1) Paragon could already be "on site" (or nearby) from a current ongoing job, so mobilization costs and setup costs are not factored in...thus giving them a slight advantage.
2) "High Bids" are quite often "dream bids" from companies who don't really want the job...but are required to bid on a certain number of projects in order to keep their company in the "loop" for other bids. Basically, they bid extremely high figuring if their bid actually gets selected...the extra costs will make it worth the extra effort they'll have to do.
3) Misread - it's also possible Paragon didn't read the whole spec, or put numbers in incorrectly/incomplete. A recent project we bid on, we were 3rd, but the low bid was more than $400k lower than the 2nd. It turns out, they missed some very important components in the specs...and misread some numbers in calculations in their rush to submit the tender. Had the city taken the bid...it could quite well have bankrupted that company.
4) Many times a bidder is waiting for numbers from their subtrades before they can put a bid together completely...and those numbers don't come in quickly enough to make the tender deadline.
1) Paragon could already be "on site" (or nearby) from a current ongoing job, so mobilization costs and setup costs are not factored in...thus giving them a slight advantage.
2) "High Bids" are quite often "dream bids" from companies who don't really want the job...but are required to bid on a certain number of projects in order to keep their company in the "loop" for other bids. Basically, they bid extremely high figuring if their bid actually gets selected...the extra costs will make it worth the extra effort they'll have to do.
3) Misread - it's also possible Paragon didn't read the whole spec, or put numbers in incorrectly/incomplete. A recent project we bid on, we were 3rd, but the low bid was more than $400k lower than the 2nd. It turns out, they missed some very important components in the specs...and misread some numbers in calculations in their rush to submit the tender. Had the city taken the bid...it could quite well have bankrupted that company.
4) Many times a bidder is waiting for numbers from their subtrades before they can put a bid together completely...and those numbers don't come in quickly enough to make the tender deadline.