Cost estimating: tendering

Identifying tenderers and tender documentation

It is advisable to follow the guidelines referred to in the JCT Tendering Practice Notice 2012.

Prior to tender, a list of potential contractors should be agreed with the architect and employer. Following agreement, it is advisable to ascertain each tenderer's willingness to tender for the project. If bona fide tenders are to be received from each tenderer, the minimum following information will need to be discussed:

  • the tender period;
  • the party's name;
  • the contract period;
  • the location of the works;
  • a general description of the works;
  • approximate value;
  • the form of contract procurement; and
  • anticipated possession and completion dates.

From the criteria, tendering contractors will be identified, to which the tendering documents will be issued. The appropriateness and type of the documents to be issued will be dictated by the method of procurement chosen - such as traditional, design and build, management contracting, and so on.

Tender documentation is generally issued with a covering letter confirming the documents enclosed, such as bills of quantities, drawings and specifications, employer’s requirements along with the tender return envelope and confirmation of the date for return of tenders. A loose form of tender will also be issued. This is usually 1 or 2 pages long and will be submitted by the tenderer, stating the amount they require to undertake the works.

Amendments

Occasionally, it will be necessary to amend the tender documentation, possibly during the tender period itself. Amendments to the tendering documentation issued to the tenderers will need to be confirmed as received by the contractor. If confirmation is not received within 1 week, contact must be made with the tenderers to ensure that the amendments have been received.

Such amendments need to be recorded. It is best practice to denote each issue of information as amendment 1, amendment 2, etc. This minimises the risk of failing to incorporate changes within the contractor's tender and ultimately within the contract itself.