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
ARB proposals for a new Architects Code
Announced in the shadow of the final Grenfell Inquiry report.
Combining human creativity and tech innovation now and in the future
Building automation and control systems market study
BSRIA 2024 North America BACS software & services.
Impact of digital technology on productivity in construction
New CIOB academy guidance for companies of all sizes.
Demolition and retrofit approaches in Planning Policy
MHCLG demolition and retrofit survey to inform future updates to national planning policy.
Expert taskforce to spearhead new, new town generation
Sir Michael Lyons given 12 months for recommendations.
Government policy statement on new towns
A coded vision for a new generation of new towns.
AT Principal Designer exemplars published
Supporting clear and comprehensive demonstration of the skills required.
Homes England goes to TOWN for co-housing project
Marmalade Lane developer selected for Northstowe neighbourhood.
Cohousing and related approaches to solve housing issues
Different forms of community housing explained with examples.
Alternative and off-grid housing communities in the UK
From Hockerton Housing Project to Tinkers Bubble.
Skills gap highlighted to Minister for Industry
Key opportunity in mission for economic growth and net-zero.
Specifying XPS in masonry cavity walls below DPC level
Moisture requirements, DPCs and third party certification.
Types of rigid foam insulation
A brief description and some of the main construction types.
Metal composite material panel systems MCM and MCP
Sandwich finishes, forms, details, core and their impacts.
Cumbria's vernacular architecture
A history of building impeded by unsettled times.
Comments
what is cost reconciliation and why is there one on all submitted tenders is required before placing a contract.