Price-Quality Ratio: How to Score Optimally in Best Value Tenders
Strategies to excel in tenders using Best Price-Quality Ratio as the award criterion.
In many tenders, the winner is determined based on Best Price-Quality Ratio (BPQR). This means the lowest price doesn’t automatically win, but rather the submission with the best balance between price and quality. How do you optimize your submission for this?
How BPQR Works
With BPQR, each submission receives a total score, composed of:
- Price score — How your price compares to other bidders
- Quality score — Assessment of your approach, team, methodology, etc.
The weighting differs per tender. Typical ratios are:
| Price | Quality |
|---|---|
| 40% | 60% |
| 30% | 70% |
| 50% | 50% |
Understanding the Math
Let’s work through an example with a 40-60 price-quality ratio:
| Bidder | Price | Quality Score | Price Score | Total Score |
|---|---|---|---|---|
| A | €100,000 | 80 | 100 | 88 |
| B | €90,000 | 75 | 111 | 89 |
| C | €110,000 | 90 | 91 | 90 |
Bidder C wins despite the highest price, because the quality score weighs more heavily and is significantly higher.
Strategy 1: Analyze the Weighting
Before you start, fully understand the weighting:
With high quality weighting (60%+):
- Invest maximally in the qualitative components
- A higher price is justifiable with better quality
- Differentiate on approach, not on price
With high price weighting (50%+):
- Sharp pricing is essential
- Keep quality good, but don’t seek perfection
- Efficiency in your approach is crucial
Strategy 2: Understand the Scoring Mechanism
Many contracting authorities use formulas to convert prices into scores:
Linear formula:
Score = (Lowest price / Your price) × Maximum points
Relative formula:
Score = Maximum points - ((Your price - Lowest price) / Lowest price) × X
Know the formula and calculate scenarios. Sometimes €5,000 higher or lower makes barely any difference to your score.
Strategy 3: Maximize Your Quality Score
The quality assessment is often more subjective than the price score. Tips:
Answer Exactly What Is Asked
Read the evaluation criteria literally. If it says “describe your approach in maximum 2 A4 pages,” deliver exactly that.
Be Concrete and Specific
Not: “We ensure good communication.”
Instead: “Our project manager sends a weekly status report every Monday at 9:00 AM with progress, risks, and action items.”
Show Demonstrable Added Value
Use concrete examples from comparable contracts. Numbers and results convince more than promises.
Visualize Where Possible
Planning, organization charts, process diagrams — visual elements are easier to evaluate and stick better in memory.
Strategy 4: Pricing as Tactics
The “Just Under” Strategy
If you suspect prices will be close together, €500 lower can make the difference. This works especially with high price weighting.
The “Invest in Quality” Strategy
With high quality weighting, a higher price can give you room to truly excel. The extra points on quality compensate for the lower price score.
The “Game Theory” Approach
Estimate what competitors will bid. If everyone goes low on price, differentiate on quality. If competitors focus on quality, a sharp price can win.
Strategy 5: Risk Analysis
Make scenarios in advance:
| Scenario | Your Price | Expected Competitor Prices | Win Chance |
|---|---|---|---|
| Low | €85,000 | €90,000-€100,000 | High if quality is good |
| Medium | €95,000 | €90,000-€100,000 | Average, depends on quality |
| High | €105,000 | €90,000-€100,000 | Only with excellent quality |
Common Mistakes
- Only focusing on price — With BPQR, this is rarely the winning strategy
- Underestimating quality components — This is often where the most differentiation potential lies
- Ignoring the formula — Calculating prevents surprises
- Writing too vaguely — Evaluators need concrete evidence
Bid Smarter with TenderWolf
TenderWolf helps you find tenders that match your expertise. This way, you can focus on contracts where you can truly excel on quality.
Start free with TenderWolf and increase your win rate in BPQR tenders.