At a point in time when there is enough design information available, a client will want to know how much a project will cost to build. They may have a fairly good idea, based on some prior research and possible cost consultancy exercises, but it is only when contractors submit their prices for a specific project can a client really be sure.
The procurement and tendering process is an important part of the project cycle. It is essential that all design information is collated, and a detailed Schedule of Works is produced within a complete tender package to allow for contractors to fully cost all aspects of the works.
Many factors determine the cost of a project, such as availability of labour, material prices and a contractor’s current work commitments, and it is important that a tender is analysed appropriately once received to compare each price on a ‘like for like’ basis.
Silver Grey can undertake all aspects of the procurement and tendering process for you on your construction project. Please contact us if you require any further advice or would like to discuss your project’s requirements.
Procurement and tendering encompasses the process of obtaining the services required to complete your construction project. It is not solely applicable to the construction phase, but also the design stage where architects, structural engineers and interior designers may be asked to submit proposal and costs for their services. We normally work on procurement and tendering when all the design information is complete, and a client wants to obtain costs from contractors for building their projects.
There are various methods of tendering regarding construction projects such as open tendering, selective tendering, single and two-stage tendering to name a few. Each method has its merits and its only by understanding each individual client’s requirements can a choice of a suitable method of tendering be agreed.
Once a contractor’s tender has been submitted, it is analysed in detail. Costs are checked, and queries with each contractor are raised with a time frame to respond. Once this is complete, a full tender analysis report is issued to the client. The report comments on and compares all prices received from contractors. A recommendation is made to the client as to who we feel is best placed to carry out the works with advice on how best to proceed.
Value engineering is a method of reducing costs while trying to maintain the function and quality of a desired aspect of a construction project. It was developed in the USA during the Second World War and it has been embraced here in the UK where it is more commonly known as value management.
It is important to utilise value management techniques at all stages of a project. However, it is often implemented at tender analysis stage, where tenders received are higher than expected. It may be possible to still achieve a desired result, by possibly using a different construction method, materials or altering the design slightly.