Pre-tender estimate for contracts
The pre-tender estimate (PTE) is the final estimate of the likely cost of the works that are described in completed tender documents prepared to seek tenders (offers) from prospective suppliers. The pre-tender estimate itself is not included in the tender documents.
It provides a final comparison with the budget, and along with the cash flow estimate enables the client to confirm that sufficient funds are available before committing to seeking tenders.
It also gives a basis for assessing and comparing tenders when they are returned.
If the pre-tender estimate exceeds the approved budget, an explanation should be provided for the client to consider and issue instructions.
As with the tender documents, the pre-tender estimate should be broken down into a series of packages (even if there will only be one main contract), this will allow easy appraisal of tenders received, which are likely to prepared by contractors based on prices of packages received from sub-contractors. It ensures that the tenders are easily compared with one another and with the pre-tender estimate, and any anomalies or potential savings identified.
The pre-tender estimate should be prepared following a standard approach to estimating such as that defined by the new rules of measurement (NRM).
NB: A post tender estimate is '…a cost estimate carried out after the evaluation of tenders to corroborate the funds required by the employer to complete the building project.' For more information, see Post tender estimate.
[edit] Related articles on Designing Buildings
- Approximate quantities cost plan.
- Bills of quantities.
- Budget.
- Business plan.
- Cash flow projection.
- Contract sum.
- Contract sum analysis.
- Cost consultant.
- Cost plan.
- Elemental cost plan.
- Estimate.
- Estimator.
- Final account.
- Front-loaded costs.
- Initial cost appraisal.
- New Rules of Measurement.
- Order of cost estimate.
- Post tender estimate.
- Tender pricing document.
Featured articles and news
Cutting construction carbon footprint by caring for soil
Is construction neglecting one of the planet’s most powerful carbon stores and one of our greatest natural climate allies.
ARCHITECTURE: How's it progressing?
Archiblogger posing questions of a historical and contextual nature.
The roofscape of Hampstead Garden Suburb
Residents, architects and roofers need to understand detailing.
Homes, landlords. tenants and the new housing standards
What will it all mean?
The Architectural Technology podcast: Where it's AT
Catch-up on the latest episodes.
Edmundson Apprentice of the Year award 2026
Entries now open for this Electrical Contractors' Association award.
Traditional blue-grey slate from one of the oldest and largest UK slate quarries down in Cornwall.
There are plenty of sources with the potential to be redeveloped.
Change of use legislation breaths new life into buildings
A run down on Class MA of the General Permitted Development Order.
Solar generation in the historic environment
Success requires understanding each site in detail.
Level 6 Design, Construction and Management BSc
CIOB launches first-ever degree programme to develop the next generation of construction leaders.
Open for business as of April, with its 2026 prospectus and new pipeline of housing schemes.
The operational value of workforce health
Keeping projects moving. Incorporating unplanned absence and the importance of health, in operations.
A carbon case for indigenous slate
UK slate can offer clear embodied carbon advantages.
Costs and insolvencies mount for SMEs, despite growth
Construction sector under insolvency and wage bill pressure in part linked to National Insurance, says report.
Comments
what is cost reconciliation and why is there one on all submitted tenders is required before placing a contract.