The research aims at using economic analysis in bidding tenders through designing of a specific simulation software easy to use in tender bidding to achieve the lowest costs paid by employers and to ensures the balancing of all the items prices without being restricted to views of tender bidding analysis committees and their ability to perform balance work, leading to not delay the projects. The research methodology including the review of previous researches and studies, and adopted techniques in the bidding of contracting as well as the study of financial and economic analysis approaches and sensitivity analysis, the necessary data collected for this study is from the Iraqi Ministry of Planning which represents the study population. Three projects associated with different ministries were selected, they are residential almajer Project, public health and Nahrain University project as a sample of the study population, these data represent of priced quantities schedule and time schedule provide by contenders contractors on the contract; then the sample population data were analyzed through the use of a designed simulation software to clear the benefits of using economic analysis for tender bidding. The study found several conclusions and recommendations and the most important of these conclusions is that conventional methods adopted in the tenders bidding do not give the best results because there is no interest with economic analysis and its compliance with the final price submitted by contractors In addition to that the performance of balance in item prices by members of tender analysis committees is not usually accurate because of the difference in the personal views of the members of the committee, as the use of economic analysis and in particular the net present value VI gave the best results through calculation of resulting loss in contracts which referred on the base of the final price. The study recommended the use of economic analysis especially the net present value for tenders bidding to achieve full control to prevent bidding of any contracts which manipulating with its item prices in order to get them.