Beware of tender reviews

Be careful with construction tender reviews.

I was grateful to be given the opportunity to review our side-by-side competitive analysis vs two other local contractors tendering for a local architect led residential extension and refurbishment.

We lost the tender so always helpful to understand at a high level if we could hone our pricing model to win going forwards.

The first thing I noticed was the lack of levelling for PS assumptions. Where there is not clarity on scope, PS assumptions are added, and each firm is likely to make varied assumptions. These should be interrogated and levelled to make a fair and equal comparison. Our collective PS assumptions were £40k more than the other returns. Had this exercise been done, we would have been far closer in our returns.

The second thing I noticed was the continued burying of OHP in priced items. This is a real lack of transparency and should be pressed back on. We always present our OHP openly and honestly which is key for future variations.

Third, I noticed prelims for one had also been rolled up. This makes is near impossible to understand and compare the level of management being provided and the cost of future prelims for variations. Again, should be pressed back on.

Finally I realise so many clients aren’t made aware when one contractor goes above and beyond supporting early stage budget planning and build feedback as they just throw you into competitive at tender anyway and do not come back to offer you a last look.

I guess my main take aways are that I stand by operating on an open and honest basis with detail break downs of prices, prelims and OHP offering a high level of project management and site support to ensure our architect led projects receive the care and attention they deserve. We won’t be part of the race to the bottom but do offer great and fair value.