There　are　some　defects　in　the　traditional　evaluation　method　for　reward　and　penalty　system　of　distribution　network　engineering　contractors.　As　the　number　of　engineering　projects　contracted　is　increasing,　the　possibility　of　making　mistakes　by　contractors　is　increasing　as　well.　In　this　way,　the　punishment　for　the　contractor　which　contracts　more　engineering　projects　will　be　more.　To　solve　the　problem,　this　paper　presents　an　evaluation　method　based　on　data-analysis.　Firstly,　we　calculate　the　penalty　score　of　projects　in　turn　and　set　the　target　of　the　total　penalty　score.　Secondly,　we　calculate　the　penalty　score　of　projects　after　considering　the　coefficients　of　them,　and　we　calculate　the　objective　function.　And　then,　the　best　coefficient　of　the　penalty　system　is　calculated　by　hyper-parameter　algorithm.　Finally,　the　best　coefficients　of　the　penalty　system　and　the　function　that　can　be　fitted　by　the　set　of　the　best　coefficients.　The　results　show　that　the　proposed　method　is　available　to　solve　the　problem　and　make　the　evaluation　for　the　penalty　system　of　distribution　network　engineering　contractors　objectively.　©　2022　IEEE.