- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 17 Feb 2021
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.
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
- Approximate quantities cost plan.
- Bills of quantities.
- 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
Industry leader Steve Murray takes on role.
An abundant and versatile building material.
600,000 heat pump installations targetted per year by 2028.
Helping prevent those unwanted outcomes.
How has transport changed due to Covid-19 ?
Will you need it ? after June 15 and the new Part O ?
Create an account and write the first of many articles.
CIAT commentary after the first meeting.
Who is to blame?
Research recommends focussing on portfolio success rather than project success.
The revised standard for mapping underground utilities.
Cross-industry steering group seeks support in delivery.
Help us update process pieces from your field.
APM report explores existing practice.
COVID-19 and the importance of mental wellbeing.
As Professionally Qualified Person (PQP).
In order of relevance and with industry responses.
Raising awareness of the impacts of loneliness.
The list is growing, and in more ways than one.
We shouldn’t build new, If we can’t maintain what's built.
Timber Accelerator Hub phase 1 report