Contractor’s Corner: Value engineering 'or equals' for specified products – Feb 2026

By Dave Stafford

With great excitement, you open the bid document, turn to the scope of work and specified products and, with dismay, see that the carpet and resilient products are from a supplier with an unfriendly mill rep or with whom you don’t have an open account. Are you better off passing on this bid or offering a similar product from another mill? This is the dilemma many of us face as we compete for business.

STUDY THE BID

Read the bid document carefully to find out your options. With public money (local, state or federal bids), most are open to product substitutions lest they be accused of favoritism; however, there may be restrictions. “Or equals” of similar products must be submitted and approved by the buyer 30 days prior to bid closing date, or the bid will be rejected. In some high-dollar, multi-year term contracts, they may provide more than one manufacturer or product selection, and either will be acceptable. Also, language in the bid document may state that the products specified are “descriptive” but not “restrictive,” meaning there is some leeway in submitting other products. Without such a statement, though, I’d err on the side of “restrictive” until confirmed in writing.

Faced with this, my best suggestion is to have a conversation with the buyer or specifier about their intent. “We really want the specified products in the colors indicated; we have built the interiors package so that all will properly coordinate. This is why your substitute must be submitted and approved prior to bid opening date.”

In one memorable case, the specified mill could not get the yarn in time to build the product and deliver by the project completion date. I had a frank conversation with the buyer and his designer, telling them, “Apparently, the mill doesn’t have the clout with the yarn manufacturer to get enough yarn to deliver on time; I can go through a larger mill that has assured me it has the same yarn in the same color on hand; it delivers to us so that we may install within the desired time.” We provided swatches, got an approval for the product change and beat the deadline by a week. Our client was ecstatic.

With private funds, there may be some pushback, but “that’s why we paid an architect or interior designer to coordinate products, all of which are readily available in the marketplace at a price we can afford.” A reason for “submission for approval” prior to bid closing also stops frivolous submissions.

I vividly recall the real mess that ensued when an inexperienced buyer awarded the bid based on low price; the key component was a blue 10th gauge carpet in solution-dyed nylon, and the substitution he approved was a 10th gauge carpet in solution-dyed olefin! The buyer was assured by the low bidder that his products were equivalent. Of course they were not. The facilities manager was furious. The sweetness of low price was soon forgotten amid the sourness of poor performance.

ETIQUETTE OF AN ALTERNATIVE BID

When or if you should offer a substitute of product or installation will depend on the parameters of the invitation for bid (IFB) or request for quotation (RFQ). An IFB implies that you are expected to provide a bid on those exact products and methods of installation as specified in the scope of work section of the bid document.  

If in doubt, always ask, “May I offer an alternative bid?” When the bid is expected to be a large dollar amount with a public opening, the bidder is generally limited to one signed bid. In rare cases, the buyer may allow the proffer of an alternate offering but require the bidder to still bid those items stated for delivery. 

When the buyer’s scope of work is flawed, or the site visit (before bidding) uncovers substrate problems not addressed in the scope of work, ask if an amendment will be issued or the RFQ will be revised. Should the amount of product and method of installation be unclear or significantly understated, that would be excellent grounds for a bid protest. I won a bid amid fierce competition by calculating my price on materials that were needed to perform the project versus the government’s statement in the scope of work. If no prospective bidder addresses the problem(s) with the buyer or the buyer says, “Just go ahead and bid the job as specified,” then expect change order hell once an award is made if the buyer’s estimate is demonstrably wrong. 

If this is an informal RFQ and it is not specified, then ask if substitute products may be offered. Most astute buyers are wary of substitutions and will usually take any offering back to the original specifier for approval. If you feel strongly that you have a better-value product, then provide complete comparative info and a physical sample, listing why your offering is a better value. 

REQUEST FOR QUOTATION ADVICE

Some buyers, under a delivery time threat, may say, “Hey, it has to be a level-loop carpet, 10th gauge solution-dyed nylon in heathered blue; get me something like that, okay?”  

Others will drive you crazy with asinine questions about the nuances of type 6 nylon versus 6,6 nylon fiber, olefin and polyester. The bigger question is carpet loop performance in the area of use, especially visual. In one sad case, a consumer selected an olefin loop with high apparent value for the landing and hallway pivot points in her building. After six months, the rich red tones had turned into a mottled gray-mauve as the carpet loops crushed out to a flat, fuzzy concrete texture. As the independent carpet inspector said in his report, “There is no carpet defect; rather, the expected performance from a lightweight direct-glue loop carpet in a high-traffic area.” 

Many RFQs are just a way of covering the legalisms of any award. Telephone quotes are like that. Written quotes, government and private, are to help the buyer give an award to his favorite. “Dave, I need a favor. Shoot me a quote on 500 yards of blue carpet, to be glued down, open, empty, clean area, no prep needed, no furniture to move.” When I said I’d need to see the area first, the buyer said, “No, you really don’t. Fred has everything in stock; you understand?” Now I understood. “Send me your bid form, and I’ll fax it back to you this afternoon.” To protect myself, I took a bigger markup than usual and included top-end installation. And now the buyer owed me one, and he came through for me several months later.

TIPS FOR OFFERING JUST THE RIGHT SUBSTITUTE AND SELLING IT

It is best to offer a similar palette of colors, design and style so that the designer or facility manager will not have to rework their entire design package. Then, they will be more likely to focus on the cost benefits of making a change or reason for a substitution; inability of the specified product to be delivered in a timely manner; or availability through a qualified bidder.

It is best not to dwell on the specifics, such as, “I cannot deal with that mill because I don’t have an open account.” Saying something like this may make everyone look bad and force the buyer to select another product. If pushed, have an “off-the-record” conversation, saying something like, “We all have to choose certain suppliers, and sometimes distribution is limited and rather restrictive with price differences; that’s why we like to offer an alternative.” In this way, you are giving the buyer a reason to use an alternate, a better price, and he will look good by accepting a way to get one. 

If the buyer truly wants competitive pricing and to do business with you, they will understand that “key-dealer or project-pricing” may be quite limited. If the buyer is adamant that only the specified products will be accepted and you cannot procure them, then walk away. It’s generally best not to burn bridges by complaining too loudly unless the selection criteria is so blatant as to be illegal (which may be the case in a government bid).

If possible, get to know your buyer or design specifier before any official submission. “Hey, Chris, here is a selection of products and available colors that should provide you some real value. How do these look to you?” 

Chris responds with, “Yep, those just might work,” or “There is no way; don’t you have anything else?” 

“Well, I do have these products, too, but I just don’t know if I can be competitive with them.” Had I not done a “verbal trial submission,” then I wouldn’t have known what Chris would have rejected. As it turned out, Chris allowed an alternate, which enabledc me to be competitive, and I got the job.

REJECTION OF ALTERNATIVES: WHAT TO DO

Is the rejection valid? Was there room for interpretation, or did you just goof? Absent a stupid error on their part, you may have to accept their decision and “no-bid” the project. A better alternative may be to go ahead and bid the job, if you can get pricing. The award may be given to you because the other bidder could not get a bid bond, post a payment and performance bond, or just decide not to bid. 

Do not bid a project with the hopes that you can finagle a way to buy the specified products through an intermediary or convince the company to sell their items to you; that usually ends in disaster for you and your reputation. Better to risk a conversation with the mill rep over a cup of coffee and see if anything can be worked out. One canny rep said, “I will provide you a with a dealer price quote and open you up if you get the job; I worked hard to get this spec, and I have to have enough dealers participate, or I’ll look bad or lose the spec.”

Even if your alternative products were rejected by the designer or buyer, go ahead and include an alternate bid with your “or equal,” clearly marked as such. “We are including this bid for your consideration in lieu of and to replace our primary bid should it be in the best interest of the buyer,” translated as, “if all the prices are coming in too high and you want to avoid having to rebid the job.” A very bright buyer suggested that route for me to take since he knew my alternate submittal had been rejected. The buyer knew the dollar limit of the project, that the designer was inexperienced, and there might not be enough time for a rebid and project monies would be lost if a delay. So, if you respond to the bid, you are still in the hunt for an award.

The best thing you can do is read-and then re-read-the bid document. Be sure you understand the nuances. If you do not bid, you have no chance, so the question becomes, how can you bid but protect yourself at the same time? Good luck!