A pre tender estimate is a final cost check carried out by the quantity surveyor prior to preparing the tender documentation for seeking contractor tenders. It allows a reconciliation of the cost plan with contract provisions and a basis for assessing and comparing tenders when they are received.
The review of the estimate should be multidisciplinary. It should include both technical and managerial perspectives. It also should involve the estimating section of the agency so that differences in unit bid prices can be readily identified and evaluated.
Preparation of a Bill of Quantities (BOQ)
A Bill of Quantities (BOQ) is a detailed and accurate document that defines the quality and quantity of materials required by the contractor to complete the project. It is normally prepared by a quantity surveyor or cost consultant, who acts as the neutral party to define the scope of work, allowing contractors to bid on the job in an equal manner. It also helps to reduce misunderstandings and disputes between the project owner and contractors by providing clear itemisation and pricing information.
A carefully crafted BOQ can deliver significant value to the project. It facilitates more precise cost estimating, promotes a fair and competitive tendering environment, simplifies procurement, aids in establishing unambiguous contractual terms, and enhances overall project control.
The role of a skilled quantity surveyor or estimator in preparing a BoQ is critical. Equipped with a combination of technical knowledge, practical experience, and state-of-the-art measurement tools, these professionals are able to transform complex design documents into a concise, itemised list of project requirements.
When preparing a BOQ, it is essential to review the project drawings and specifications to identify any errors in quantities. The quantity surveyor or estimator can also consult with design professionals to resolve any ambiguity and ensure accuracy. In addition, it is important to verify the MEP drawings to ensure the accuracy of mechanical, electrical, and plumbing designs.
Preparation of a Cost Plan
A cost plan is a document that lists the estimated costs for a project. It includes detailed cost information, including project requirements, estimates for labour and materials, and a detailed breakdown of project elements. It helps to identify any constraints that may affect the project’s scope, timeline and budget. A well-prepared cost plan can help to ensure that bid prices are competitive and accurate. It also helps to minimize construction delays and reduces the need for contract modifications.
A good quality pre tender estimate is based on a thorough examination of the project drawings, specifications and site investigation. It should also include a schedule of basic costs at the time of tender submission, including plant and equipment, labour, materials and overheads. It should be prepared using standard unit values.
A questionnaire survey was undertaken to determine the opinions of both clients and consultants on the factors that influence the accuracy of pre-tender estimates. It was found that both groups ranked external factors as the most influential factor affecting estimate accuracy. Other factors that were ranked highly included the ability to make use of existing reference data, clear and detailed drawings and a thorough and consistent estimating methodology. However, some low visibility factors that need to be identified in preparing a pre-tender estimate were not recognized by either group. These included the impact of government regulations requirements, location of the project, type of structures and size of estimating team.
Preparation of a Tender Document
When preparing a tender cost estimate, the quantity surveyor should review all the construction drawings and specifications to identify items of work. He or she should also conduct site investigations to determine the appropriate price for labour, plant and materials. It is important to take into account the method of payment and other variables, such as site conditions, which may affect the final project costs.
Tender documents are often prepared using standard templates, which can save time in putting together the document. However, it is essential to understand the requirements of the organisation awarding the contract, as some organisations have very specific guidelines and font sizes, word counts and other formatting requests. Tender preparation can be time consuming, but it is important to keep up with the deadlines set by the organisation awarding the contract.
In order to improve the accuracy of pre-tender estimates, it is vital that clients and consultants pay attention to the most critical factors. The results of this study indicate that the most important factors influencing pre-tender estimation include: (1) the location of the project and (2) the type of structures. These factors were ranked highly by both client and consultant respondents. This is consistent with previous studies of estimating accuracy. Moreover, it is recommended that organizations should monitor suppliers and undertake regular evaluations of their performance.
Preparation of a Tender Price
Preparation of a tender price is one of the most critical elements of tender preparation. It requires a thorough analysis of the work items involved in the project. This includes examining the drawings and specifications to identify the various construction activities to be undertaken, assessing rates for labour, plant, materials and sub-contractors, and estimating the costs of site overheads (staff offices, stores, accommodation) and any specialist consultants. These costs are added to the direct construction cost component of the engineer’s estimate to produce a proposed tender price. A mark-up for overheads and profit is then added to arrive at the final tender price.
Tender evaluation teams are generally looking for reasonable estimates. They want to see that important items are fully budgeted for and that the company’s overheads and profits are reasonable. They also want to see that potential savings have been considered. If a tender specifies a particular brand of equipment, for example, you should offer an alternative and explain the saving.
Several factors affect the accuracy of pre-tender estimates, including technical understanding and knowledge of the project. In addition, it is essential that clients and consultants have access to reliable, up-to-date information regarding the prices of materials and equipment. Moreover, they should monitor the performance of their estimates and hire qualified technical staff. This will ensure that the estimates are accurate and realistic.