Describe what estimators look for in their review of the bid documents
A construction tender is an invitation to provide a formal submission, or proposal to bid on doing work on a construction project. Show
Types of construction tendersThere are a few types of tenders when it comes to construction projects. They include:
An open tender, usually used for Government projects, is advertised and if you are interested in the job, then you can pick up a tender package. With other types of tenders, the packages are often presented to you. What’s included in a tender package?The people or agencies that have a building project they want to be constructed will put together a tender package and make it available to the construction companies they want to submit a building proposal.
This is how you begin to familiarize yourself with the project. From the information in the tender package, you will start to build your proposal or bid. Responding to a tender requestYou should take every tender request seriously and consider it an honor to participate. So, make sure you enter your response within the timeframe the tender package outlines. Awarding tendersThe client may not necessarily accept the lowest bid when they award the tender. Instead, they are most likely to award it based on experience, professionalism, abilities, quality and price. If your offer is too low, they may wonder how you can provide quality work. You need to ensure your construction cost estimate is accurate and you cover all your costs as well as your intended profit. Who should be responsible for construction estimating in a construction project?Depending on the size of the construction business the responsibility to perform a construction estimate could belong to dedicated cost estimators, the project manager, or the business owner. In a small remodeling business, it is often the builder themselves who is responsible for performing them – taking up a lot of their valuable time. Advantages of getting in front of your customers quicklyThe quicker you can build a relationship with your prospective clients the better. Not only can you build a rapport, but you can show your professionalism and market your business. 10 vital steps in the construction estimating processTo win tenders that are profitable for you, you must ensure you produce an accurate cost estimate. If your estimate neglects to include any of the following 10 steps, then you could be losing your business money and clients. 1. Choosing the right work to bid onBefore you even start putting much time and effort into your project bid, you need to ensure the job is feasible. Are the client’s expectations attainable? Can you handle the scope of work? Is the timeframe achievable? 2. Reviewing construction specificationsIn the tender package, you will find the construction specifications (specs). This document should explain the grade of materials to be used, the kind of installation methods, where the cost responsibilities lay, and it should outline anything else that may affect construction costs. 3. Reviewing construction drawingsNext, you need to read the technical details from the architectural drawings to get a thorough understanding of the build and the scope of work. This means making a 3D picture of the project in your mind, showing you the elevations and work heights, etc. You should compare the drawings with the specs to clarify any discrepancies between the two. 4. Performing a construction takeoffFrom the construction drawings, you must detail every product and material required for project completion. Then from the quantity takeoff you identify the unit costs of the items, and you calculate the overall cost of the project’s materials. A profitable project depends on an accurate estimate. 5. The construction estimateNow that you have your accurate quantity takeoff, you can add it to your construction estimate. You will also need to include:
Making a mistake when preparing your estimate can be costly; so be sure to check and double-check all your information and calculations. 6. Determining overhead and profitWhether you call them soft costs, indirect costs or overhead costs, don’t forget to add them into you overall figure. Examples of these include the cost of your office lease, effort needed for estimates, book-keeping costs, sales and marketing. 7. Building your construction proposalYour proposal must be professional-looking and created in a timely manner. It must be detailed, concise and accurate. Try to use similar language as the specs document and the construction drawings. Use it to showcase you and your business – tell the client why you are the right person to lead the job. 8. Construction contract basicsA contract should accompany the other construction documents in your proposal. Some common construction contract types include:
The contract is your safeguard, if issues or disagreements arise, you should refer to your contract for resolution; so be sure to make it clear and concise. 9. Handling change ordersAnother important safeguard is the change order document. If changes need to be made after the construction has begun, a change order must be created. Verbal agreements can change; so get them in writing. 10. Construction estimating softwareThe most vital tip we can give you to make more profits, save time and for accuracy, is that we recommend you use estimating and construction management software. Why you should use estimating software during the construction estimating processIf you want to produce a bid estimate that wins, then it has to be quick, professional, accurate, clear and concise. You could spend a lot of time printing paper plans, measuring items depicted in them and then making manual calculations. Or you can save a lot of time by using estimating software.
Good quality software requires simple data entry to assist you. With less time and effort, you can use software to stand out from other competing contractors with a bid price that wins jobs and profits. So, try our 14-day free trial or book a demo and get back your spare time while growing your business and making money. What is to review estimating methods?The goal of an estimate review is to determine that a high quality and sufficiently accurate esti- mate has been prepared. The review should ensure that the proper estimating methods, procedures, techniques, data, and guidelines have been employed in the preparation of the estimate.
What is a query list and how is it used by an estimator?Query List takes the results of an existing query, places them into a list where you can add and remove records, and saves this list for use in other processes throughout The Raiser's Edge, such as in mailings and exports. Query List allows you to "massage" a list of constituents in query results.
What are the things to consider when it comes to bidding?5 Key Factors to Consider in Bid/No-Bid Decision Making. Profitability.. Capability.. Historical Analysis.. Long-Term Strategy.. Risk Assessment.. What are the five 5 main stages of an estimate?5 Step Cost Estimating Process. Order of Magnitude.. Schematic Design Estimate.. Preliminary Estimate.. Construction Document Estimate.. Bid Estimate.. |