6/29/2020 1st step of tendering process-decision to tender · Quantity Surveyor blog

Tendering process 1st step -decision to tender

November 6, 2019 raoneqs QS 0

Image by Tumisu from Pixabay

Tendering process

Contents hide
1 Tendering process
2 Tendering process 1st step-decision to tender
2.1 Type or amount of the works currently handling by the company
2.2 Approximate amount of the project to be tender (based on the available documents and Information)
2.3 Necessary resources and workforce based on the approximate figure
2.4 Time duration, commencement date & closing date of the project
2.5 Contract method, method statements and any special requirements
2.6 The submission date and time duration provided for tendering process
2.7 Risks
2.8 Bonds or warranty requirement & payment terms

Incorrect tendering and estimation process can lead a company into dangerous situations. Underestimation of a
project can hurt owners and employees of the company at the construction stage. And overestimation can push the
company out of the competition (tender rejections).Therefore any company should have a proper strategy or a
process to submit a competitive tender. In this article, we are discussing the vital essential factors of an
effective tendering and estimation process.

Tendering process 1st step-decision to tender

https://quantitysurveyor.blog/2019/11/06/tendering-process-decision-to-tender/ 1/3
6/29/2020 1st step of tendering process-decision to tender · Quantity Surveyor blog

First and most crucial planning factor is in bidding and estimation process is the decision to tendering. The contractor
should decide whether it is worth to work on or not. based on below mentioned key factors the contractor can decide
whether to proceed with tender.

Type or amount of the works currently handling by the company

Before quoting for another project, a company should evaluate the current commitments of it. As well as the cash
flow predictions for ongoing projects. If they are busy and engaged, it is difficult to receive another job.so the best
option is not to quote for another project. Also, there might be a chance to identify potential and beneficial projects
based on the above factors (contractor can determine the best tenders to benefit the cash flow of the company).

Read : Design Problems & Design method

Approximate amount of the project to be tender (based on the available

documents and Information)
Approximate value can be evaluated based on the previous project analysis. Most of the contractors are having per
square meter rate for a different type of buildings and projects. Experience contractors are frequently analysing past
executed projects to determine these per square meter rates. By evaluating the project (to be tender), the contractor
can easily decide it is worth to be quoted. Value can be lesser or more significant than the contractor’s capacity
(Smaller contractors are not able to handle bigger projects, and bigger contractors will suffer from smaller projects).

Necessary resources and workforce based on the approximate figure

Some projects may require additional or special requirements. So the contractor should be aware, what is needed to
complete the project (to be tender). Based on the workforce requirement of the project (to be bid) Contractor can
determine whether they need additional workforce or not. Based on these details and contractor’s capacity, they can
decide whether they can handle the project to be tender.

Time duration, commencement date & closing date of the project

Commencement date, complete dates are essential to determine cash flow requirements and workforce
arrangements. If the project is running on the timeline which contractor is so busy, they can evaluate and reject the
tender invitation by politely. Importantly the contractor can determine the possibility of completing the project
according to the given duration.

Contract method, method statements and any special requirements

Understanding of the contract type, terms and conditions of the contract is also an essential factor before deciding
to tender. Special requirements biased condition (to the client) can include in the agreement. So the contractor
should be aware of these conditions, and he should address it accordingly.

Read : Cost estimation tips- Calculate unit price for Rate brake ups

The submission date and time duration provided for tendering process
Another most important factor that can affect the submission of tender is the time given for the submission of the bid.
Most of the clients are expecting contractors to submit proposals in a minimal time frame. Insufficient timing can
increase the risk of offering a false offer. The contractors can evaluate actual time frame to submit the proposal and

https://quantitysurveyor.blog/2019/11/06/tendering-process-decision-to-tender/ 2/3
6/29/2020 1st step of tendering process-decision to tender · Quantity Surveyor blog

may request for an extension. If the client is refuse to grant one, the contractor should focus on some other tender
rather than concentrating the current one.

Risks
The contractor should asses the risks such as adverse site conditions, social and environmental risks of the project.
Some projects may require a massive amount of temporary works to minimise construction risks.

Bonds or warranty requirement & payment terms

Biased payment terms and bond requirements can be a threat to the contractor’s cash flow. So contractor should
aware of these kinds of situations and necessary precautions to be taken to prevent any harm.

Check related article Construction-Risk assessment at tender stage

Share this:

Share WhatsApp Email

Like this:

Loading...

Related

BE
THE

6 most popular tendering Design and Build Construction risk assessment at

methods in construction industry Procurement/Contracts in tender stage
October 5, 2019 Construction November 15, 2019
In "QS" March 24, 2020 In "QS"
In "Contracts"
FIRST TO COMMENT
PREVIOUS NEXT
Quick Guide to extension of time claims Construction risk assessment at tender
(EOT Claims) stage

Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.

https://quantitysurveyor.blog/2019/11/06/tendering-process-decision-to-tender/ 3/3