More expensive (initially) than sending out drawings to builders and asking for a quote.Similarly, many “premium” contractors will not competitively tender due to demand for their services without having to compete.Ĭompetitive tenders are often only cost-effective on projects over £200,000, unless the smaller project is particularly complicated or of a high specification. Some smaller builders will not take part in a tender process as it is more expensive than quoting directly for work. However, I’d urge the clients to look at the project as a long term commitment and see that often money saved at the beginning is spent later on.
There is no way around it, tenders take longer and cost more than an email saying “here are some drawings, send us your price”. Demonstrates to the client the commitment of the potential contractor.Contractors take part in formal process with clear selection criteria.Ensures that the client is comparing “like for like” quotations.It gives the client a set of competitive unit rates for use in variation negotiations.Low items especially can cause issues down the line, so rather than letting the contractor find this out during the project (and start claiming every extra they can to make it up) it is often better to work collaboratively a the beginning of the project.Įnsures that the client receives the best value tender for every project. This ensures that the contractor is content with their tender return and are fully committed to carrying out the work for the price quoted. Part of the Quantity Surveyors role in the tender process is to review every tender and identify any anomalies within the pricing. Not only this, but as part of the tender package the client also knows the proposed programme time as well as the number of errors and omissions made in the pricing. With a good Quantity Surveyor preparing and monitoring the tender, they are designed to ensure that the client gets best value for money. As they don’t know who else is quoting, this ensures that the client receives quotes of the best value.įor the purpose of this post I’ll be talking about single stage tendering with a detailed schedule of works. Contractors tendering for construction work are often competing with two or three others and so are encouraged to submit their most competitive tender. Put simply, competitive tendering is construction is a formal process which results in an “offer” made by a contractor or consultant in response to an invitation to tender. Below I thought I’d touch on the pros and cons of using this approach to procurement. The word “tender” (in the construction sense) within the industry often releases screams of hate from Contractors and yawns from Clients.
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