What is Tendering in Construction?

Clients are mostly regular random human beings involved in their own various activities of life, they have little or no understanding of all the contractual activities happening during project execution.

All they want is just to see their dream project comes to reality with the most minimum resources and a maximum value and definitely with a proportionate and economical cost.

How then can this be achieved? Who are the right people the client needs to be able to achieve this?  Does Tender in construction have a role to play in it?

Mr. Ola who is a successful businessman is interested in having a hotel of his own, though he might have a lot of managerial experience involving hotel services after having to work at some in the past few years, now, he has a dream of building his own hotel.

for his dreams to come true, he must have saved enough money(a rough reasonable estimate), have an idea of the location to establish the hotel, and also meet the right people involved in carrying out the construction and erection of the new hotel building from inception to completion stage.

Meeting the right people is very important for the client, if not it can end in tears “lol”, no jokes though, for the client’s dream to come true as projected.

He must first consult an Architect who will convert his brief outline and sketches to representable working drawings and plans that other consultants in the field and construction industry will then be able to work with together in achieving the client’s dream, preventing the client from really ending in tears.

Hey! we are here for the essence of tendering and estimating and not the client’s tears, so we move!

You should know that Tendering and Estimating are important to the Client just as the drawing plans from the Architect are too. So if the Architect is the one involved in the drawing plans, who then is involved in the tendering and estimating procedures, What actually is this Tendering and Estimating?

Estimating and Tendering for construction work

The estimation and the tendering process in the construction industry are done by the Quantity Surveyor always.

Tendering and Estimating is very important, and the Quantity Surveyor is the one fully involved in every aspect of the tendering procedures and cost activities in the construction industry.

We have all agreed that a client needs to meet the right people, now how then can he meet these right people?

The client must find a way to look for the best and most suitable contractor to execute the contract, however, one or more contractors or construction firms may be interested in executing the project work for the client, each of them having their own specific estimated cost prices and duration period needed in executing the project for the client.

What is the definition of Tendering?

Tendering is a process where offers for project execution at a specific estimated price and duration are made by interested contractors to the client’s building team. It is an act of submission of a quotation made by a tenderer interested in executing the project of the client.

A Quotation is the estimated cost price the contractor needs to execute the project.

A Tenderer can be a medium-sized construction company or the highest caliber of contractors interested in the client’s project.

A Client can be any individual, group of people, company, or government ministry that is in need of any Construction service.

We should know that tendering is a process, the whole tendering procedures involve both the client building team and the interested contractors or construction firms. since there may be different contractors interested in executing the project for the client.

The client building team must then have to look for a way to select the most suitable contractor that will be awarded the contract. All these procedural activities are what Tendering entails that’s why it’s called a process because it involves stages.

What is Estimating?

It is of no surprise that in the US and some major parts of the world, Quantity Surveyors are mostly referred to as Cost estimators and cost engineers, literarily all Quantity surveyors are Cost Estimators, they all have something to do with cost estimation.

Estimating is the process of computing the overall cost needed to execute a particular construction work or project.

This is where some clients usually miss it, they think the cost for the erection of a building only has to do with the price of the building materials alone making their own shabby estimates always lower.

One should take note of the “Overall” in the definition, it takes more than just the materials alone to erect a building from inception stage to completion stage especially on a large scale e.g university campus or hotel.

Mr. Ola has a lot of knowledge on hotel management, he has gathered enough experience, he even knows the overall amount that was used to construct the last hotel he worked with, now he has a dream of starting his own, His savings target is now similar to the overall cost that was used in erecting the hotel he worked with before.

One wouldn’t blame Mr ola for making his saving target that way, that’s what many clients usually do, they always think that since a similar structure has been constructed with this amount then theirs also can be done with that same amount.

Very wrong! No two buildings are the same even if the buildings are similar, some conditions and factors will differentiate them, all these are not known to the client but the Quantity surveyor majors on all these.

That is why it is always important to have a quantity surveyor in the client’s building team to always create such awareness for the client.

There are many things to consider than just the materials alone. labor, rate, legal works, litigation, location, etc. are different factors that also contribute to the overall cost, most of these will be strange to the client.

Also, it should be noted that there is a slight difference between a tender and an estimate, with a bid and a quote.

A tender is an invitation to bid for a project or accept a formal offer while an estimate is a rough idea of a price. They should be used as an initial guide price only.

Quotations are more specific and should only be used when you are certain of the costs involved and Bid Involves the process of managing the submission of a tender for a contract or the process of submission of a quotation by a tenderer.

Importance of Quantity surveyor during Tender Procedures

The Quantity surveyor specializes in this aspect, that’s what they were trained for, they know all that it takes and all the factors to checklist and consider in computing the cost.

Estimating is a technical function and a vital process practiced by a quantity surveyor for accurate cost prediction that is why it is always mandatory for clients to always consult a quantity surveyor.

However, it is the job of the client’s quantity surveyor to make the clients understand where every of his penny is going. They need to know, that’s why Quantity Surveyors are also referred to as the financial cost advisers in the built environment.

This overview on Tendering and estimating shows just how important it is in project execution, we will continue to illuminate more on the objectives of tendering, Tendering documents, different tendering methods, stages in tendering procedure, factors affecting the tender price, and rate ingredients.

Clients, Students, and all construction experts should be on the groove with Costecon as we vibe you always to good construction practices.

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