Tender pricing document
The tender pricing document sets out the way in which the design team and client wish to review the breakdown of the overall tender prices provided by tendering contractors. It is effectively an unpriced bill of quantities.
It generally follows the format of the cost plan that has been developed at this stage (the pre-tender estimate), however, the preliminaries, particularly staff costs, may be broken down in more detail.
The objective of the tender pricing document is to:
- Enable like-for-like comparison between tenders and the cost plan (pre-tender estimate).
- Enable the cost consultant to assess where value lies within the different tenders (such as foundations or finishes) allowing assessment of value for money.
- Identify any significant differences in pricing between tenderers to ensure the design has been correctly interpreted.
- Identify areas of savings that might be negotiated with tenderers while still in competition.
- Form the financial basis of the tender report.
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.
NB: On design and build projects, there may not be a tender pricing document, and instead, a contract sum analysis might be prepared by the contractor.
See also: Tender price appraisal.
[edit] Related articles on Designing Buildings
- Accounting.
- Approximate quantities cost plan.
- Bills of quantities.
- Cash flow.
- 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 cost.
- Tender documentation.
- Tender price appraisal.
- Types of bill of quantities.
- Without quantities.
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