STAGE1

If you want a competitive price for your project you will need to get a price from more than 1 builder.

What can happen if you don’t follow the right process:

• you might end up with no builders willing to tender

• you may not be able to accurately compare tenders

• in disagreement about inclusions and exclusions

• in dispute with your builder

• facing greatly increased costs

• unable to achieve the result you wanted.

Usually the designer is familiar with client expectations, budget and specification preferences at the time of tender. This helps in a quicker tender offer for the client, from a builder, before the client spends an inordinate amount of time with a potentially inappropriate builder.

Ideally you should have an idea of how the builder should work and on what basis they are paid. Once you have selected a contract we can complete the schedule of conditions, any special conditions applicable to your state such as:

• Liquidated damages

• Extensions of time

• Payment program

• Supply of PC items & builders margin

• Variations

Tendering and contract law can be quite complex. As such I can walk you through the process in an easy to understand way. Protecting you, the client, from vested interests from the builder.

You can’t just tender off designer plans. Buildings can be complex things and a lot more information must be spelt out and included in the builder’s tender.

My tender set should include:

• Reference to any council approved plans including associated conditions.

• Construction approved general arrangement plans.

• Lighting and electrical layouts.

• Larger scale fit-out details, selections, finishes schedules (if applicable).

• Construction specification (standard spec & additional clauses listed separately!)

• Engineering documents.

Plans will clearly outline responsibilities of nominated sub-contractors, suppliers & installers.

STAGE 2

I have numerous details in regards to particular builder who offer different skill sets pertaining to different types of projects with varying size & scope. With this list of builders i will contact them to canvass interest and check suitability, insurances, scale of work, availability etc.

I will then advise clients of each prospective builder after having a face to face meeting with each tenderer and thoroughly brief them on the job. Tendering can be time consuming for builders so my familiarity with each project will help them feel comfortable about offering a tender that they think are worthwhile and time efficient.

• All tenderers visit the site for themselves for new builds. For renovations a site visit can be arranged by myself after an initial tender is offered.

• I will avoid having too few or too many tenderers. 3 is a good number.

During the process of tendering some builders have queries. This is a good guide as to the effort being put into a tender, and shows that the builder is keen. Where there are answers or clarifications I will be sure to advise them accordingly.

To help avoid having to chase up slow tenderers I will be sure to check on the progress of tenders during the tender period to ensure they are on track. I will decide on how to deal with late, non-conforming or incomplete tenderers.

STAGE 3

My industry experience allows me to compare trade prices & rates for additional work. If none are provided then i will ask for them. I will check for inclusions and exclusions, as they arise I will request additional cost or may highlight discrepancies.

Other items confirmed:

• Checking for arithmetic errors in the tender

• Check that GST is included

• Consider the start date and timeframe for the job along with the price.

If we find that I am comparing apples with oranges additional information may need to be supplied to make comparison possible.

Final issues to consider upon delivery of tenders to client:

• If needed, ask the builder for ways to make the job more cost-effective.

• If needed, query his trade breakdowns vs other tenderers prices.

• If needed, discuss ways to reduce the cost by reducing the scope of work or staging work

• Find out if the builder has any leeway in his tenders, ie: could they go lower to get the job?

When notifying unsuccessful tenderers, i am mindful of how much information i will disclose however certain feedback, at my discretion, is valuable to builders and offers some return for the time spent.

This guide is really just a starting point. It is a list of steps to think about. The tendering process can be lengthy and complex depending upon the project. It is my aim to reduce time and stress on all parties. I will build in a commission to the tender price which is more than offset by the builder due simply to the savings on time usually required for the tender process but mostly due to the amount of opportunities of tender I can provide to trusted builders in any given year.