Cost estimating: tendering

Following the issue of the tender report, and prior to the appointment of the contractor, it is often useful to meet with the preferred contractor. Any meeting should be attended by the employer, the design team and the proposed contractor's team. The purpose of the meeting is to discuss any issues that may impact on the success of the project, such as the programme, construction or cost.

Assuming that this meeting concludes positively, the next step is to draw up a contract between the employer and the contractor to procure the works.

It is best practice to draw up and complete full contract documents prior to formalising the appointment of the contractor. However, often time is of the essence to an employer, who requires the completed building as soon as possible. In such circumstances, letters of intent (instructions to proceed with consent to spend) will be issued (see the chapter on Letters of intent for more information). These are legally binding documents and specialist advice should be sought before issuing such letters. It is advisable, if such letters are issued, that this is done on the employer's noted paper and not on that of the surveyor's practice.

Contract documents may be prepared by the architect or a client's legal advisor. Often, however, it is the responsibility of the project surveyor to prepare such documents. The information included in contract documents will be specific to each project and will vary dependent on the procurement route. However, it will generally comprise one or more of the following:

• a bill of quantities (if the procurement method is design and build, the employer's requirements and contractor's proposals);
• drawings;
• a specification;
• a contract (agreement and conditions), amended to incorporate the name of the parties, the contract sum, Appendix, and so on.

Two sets of the contract documents will be prepared - one for the employer to retain, the other a certified copy for the contractor to keep.

• Both sets need to be signed and dated by the parties to the contract (i.e., the employer and contractor). The preferred sequence is for the contractor to sign, followed by the employer, who also dates the contract.

This should be undertaken immediately after the contractor is notified - delayed by no longer than is necessary to collate and prepare the documents. In any case, it is imperative that this occurs prior to commencing works on site.