ESTIMATING or

TENDERING

Lara Tookey

 There are two terms that you will hear

frequently used in contracting
organisations: Estimate and Tender.

Although these terms tend to be used

indiscriminately, there is in fact an
important distinction between them.
Lara Tookey

Lara Tookey

WHAT IS THE KEY PHRASE THAT

DETERMINES THE DIFFERENCE
BETWEEN THEM?
Lara Tookey

An estimate is the preliminary

assessment of the net cost of the
works. It is established first and
then converted to a tender
&

A tender is the sum for which the

contractor will carry out the works,
including overheads and profit.

Lara Tookey

Remember
An estimate must be prepared in a way
that is explicit and consistent and which
takes account of methods of construction
and all circumstances which may affect
the execution of the work on the project.
In New Zealand, measurement is based
on NZS4202
Lara Tookey

Remember
An estimate should be prepared net, & is
an estimate of cost.
Preliminaries & Project Overheads should
be added after a construction
programme has been determined & the
total value of the measured work has
been obtained.
Allowances for Contractors Margins (risk,
general overheads and profit) should be
added by Management at the time of
Adjudication.
Lara Tookey