Tender cost
[edit] 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 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.
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.
[edit] Two-stage tendering
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.
[edit] 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.
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.