Tender cost - Revision history

Designing Buildings at 07:28, 17 February 2021

2021-02-17T07:28:58Z

← Older revision		Revision as of 07:28, 17 February 2021
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	* Whole-life costs.		* Whole-life costs.

−	[[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 12:57, 23 July 2019

2019-07-23T12:57:50Z

← Older revision		Revision as of 12:57, 23 July 2019
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	= introduction =		= introduction =

−	Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of goods or services. In construction terms the tender could be for the construction of an entire building or buildings, or for providing a distinct set of services such as ~~structural engineering or landscape design~~. The completed tender pricing document is effectively a priced bill of quantities; it sets out the tenderer’s rates, costs and totals and constitutes the tenderer’s complete offer to the client.	+	Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of goods or services. In construction terms the tender could be for the construction of an entire building or buildings, or for providing a distinct set of services such as landscaping.
		+
		+	A tender pricing document sets out the way in which the cleint wishes to review the breakdown of the overall tender prices provided by tendering suppliers. It is effectively an unpriced bill of quantities. The completed tender pricing document is effectively a priced bill of quantities; it sets out the tenderer’s rates, costs and totals and constitutes the tenderer’s complete offer to the client.

	The tender cost is the total of all the charges contained in the tender that will be made by the supplier associated with the delivery of the tender requirements. To the client (who issued the ITT), the tender cost usually represents the total cost of taking delivery of the building or service.		The tender cost is the total of all the charges contained in the tender that will be made by the supplier associated with the delivery of the tender requirements. To the client (who issued the ITT), the tender cost usually represents the total cost of taking delivery of the building or service.

	Costs in the tender will be broken down and itemised against each stated requirement. This not only makes it easier for tenderers to price the document, it also means clients and their advisers can see exactly what is being offered by the various tenderers, make comparisons between them, see where value lies and where savings can be made.		Costs in the tender will be broken down and itemised against each stated requirement. This not only makes it easier for tenderers to price the document, it also means clients and their advisers can see exactly what is being offered by the various tenderers, make comparisons between them, see where value lies and where savings can be made.
−
−	~~Costs in a typical tender will contained mainly in the:~~
−
−	* Completed tender pricing document (or contract sum analysis on design and build projects), and
−	* The schedules of rates
−
−	If a variant bid (sometimes called an alternative or non-compliant proposal) is being submitted, the tenderer must demonstrate, with costings, how the alternative technique being proposed offers better value than the client’s original method.

	= Two-stage tendering =		= Two-stage tendering =
−
−	Sometimes it is not possible for contractors to supply accurate, fixed prices. For example, on a two-stage tender process on a design and build project, the employer's requirements may not be sufficiently well developed for the contractor to be able to calculate a realistic price. In this case, the contractor will tender a fee for designing the building along with a schedule of rates that can be used to establish the construction price for the second stage tender.

	Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing the supplier to begin work and in the second stage a fixed price is negotiated for the contract. It can be used to appoint the main contractor early or more commonly as a mechanism for early appointment of a specialist supplier such as a cladding contractor.		Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing the supplier to begin work and in the second stage a fixed price is negotiated for the contract. It can be used to appoint the main contractor early or more commonly as a mechanism for early appointment of a specialist supplier such as a cladding contractor.

Designing Buildings at 07:41, 16 July 2019

2019-07-16T07:41:53Z

← Older revision		Revision as of 07:41, 16 July 2019
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		+	= introduction =
		+
	Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of goods or services. In construction terms the tender could be for the construction of an entire building or buildings, or for providing a distinct set of services such as structural engineering or landscape design. The completed tender pricing document is effectively a priced bill of quantities; it sets out the tenderer’s rates, costs and totals and constitutes the tenderer’s complete offer to the client.		Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of goods or services. In construction terms the tender could be for the construction of an entire building or buildings, or for providing a distinct set of services such as structural engineering or landscape design. The completed tender pricing document is effectively a priced bill of quantities; it sets out the tenderer’s rates, costs and totals and constitutes the tenderer’s complete offer to the client.

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	If a variant bid (sometimes called an alternative or non-compliant proposal) is being submitted, the tenderer must demonstrate, with costings, how the alternative technique being proposed offers better value than the client’s original method.		If a variant bid (sometimes called an alternative or non-compliant proposal) is being submitted, the tenderer must demonstrate, with costings, how the alternative technique being proposed offers better value than the client’s original method.

−	Two-stage tendering	+	= Two-stage tendering =

	Sometimes it is not possible for contractors to supply accurate, fixed prices. For example, on a two-stage tender process on a design and build project, the employer's requirements may not be sufficiently well developed for the contractor to be able to calculate a realistic price. In this case, the contractor will tender a fee for designing the building along with a schedule of rates that can be used to establish the construction price for the second stage tender.		Sometimes it is not possible for contractors to supply accurate, fixed prices. For example, on a two-stage tender process on a design and build project, the employer's requirements may not be sufficiently well developed for the contractor to be able to calculate a realistic price. In this case, the contractor will tender a fee for designing the building along with a schedule of rates that can be used to establish the construction price for the second stage tender.
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	Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing the supplier to begin work and in the second stage a fixed price is negotiated for the contract. It can be used to appoint the main contractor early or more commonly as a mechanism for early appointment of a specialist supplier such as a cladding contractor.		Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing the supplier to begin work and in the second stage a fixed price is negotiated for the contract. It can be used to appoint the main contractor early or more commonly as a mechanism for early appointment of a specialist supplier such as a cladding contractor.

−	Related articles on Designing Buildings Wiki	+	= Related articles on Designing Buildings Wiki =

	* Accounting.		* Accounting.

Editor: Created page with "Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of good..."

2019-07-15T15:49:07Z

Created page with "Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of good..."

New page

Usually created as a response to an invitation to tender (ITT), a tender is a submission made by a prospective supplier (the tenderer) which makes an offer for the supply of goods or services. In construction terms the tender could be for the construction of an entire building or buildings, or for providing a distinct set of services such as structural engineering or landscape design. The completed tender pricing document is effectively a priced bill of quantities; it sets out the tenderer’s rates, costs and totals and constitutes the tenderer’s complete offer to the client.

The tender cost is the total of all the charges contained in the tender that will be made by the supplier associated with the delivery of the tender requirements. To the client (who issued the ITT), the tender cost usually represents the total cost of taking delivery of the building or service.

Costs in the tender will be broken down and itemised against each stated requirement. This not only makes it easier for tenderers to price the document, it also means clients and their advisers can see exactly what is being offered by the various tenderers, make comparisons between them, see where value lies and where savings can be made.

Costs in a typical tender will contained mainly in the:

* Completed tender pricing document (or contract sum analysis on design and build projects), and
* The schedules of rates

If a variant bid (sometimes called an alternative or non-compliant proposal) is being submitted, the tenderer must demonstrate, with costings, how the alternative technique being proposed offers better value than the client’s original method.

Two-stage tendering

Sometimes it is not possible for contractors to supply accurate, fixed prices. For example, on a two-stage tender process on a design and build project, the employer's requirements may not be sufficiently well developed for the contractor to be able to calculate a realistic price. In this case, the contractor will tender a fee for designing the building along with a schedule of rates that can be used to establish the construction price for the second stage tender.

Two-stage tendering is used to allow early appointment of a supplier, prior to the completion of all the information required to enable them to offer a fixed price. In the first stage, a limited appointment is agreed allowing the supplier to begin work and in the second stage a fixed price is negotiated for the contract. It can be used to appoint the main contractor early or more commonly as a mechanism for early appointment of a specialist supplier such as a cladding contractor.

Related articles on Designing Buildings Wiki

* Accounting.
* Approximate quantities cost plan.
* Bills of quantities.
* Budget.
* Business plan.
* Cash flow.
* Common arrangement of work sections.
* Contract sum.
* Contract sum analysis.
* Cost consultant.
* Cost plan.
* Elemental cost plan.
* Initial cost appraisals.
* New Rules of Measurement.
* Pre-tender estimate.
* Spon's Price Book.
* Tender documentation.
* Tender pricing document
* Types of bill of quantities.
* Whole-life costs.

[[Category:Contracts_/_payment]] [[Category:Procurement]]