The tender process begins with a corporate or government client requesting bids for a construction project. These bids typically include the price of the work, a construction schedule, and information about each company and its strengths and experience. These bids must be submitted by a deadline, after which time the client decides which bid, or tender, it will accept. The acceptance of a tender marks the end of the tender process.
The tender process may be open, when any construction firm can submit a bid, or selective, when only construction companies hand-picked by the client can submit their pricing.
How Do Construction Companies Determine Their Tenders?
TPM Builders explains its tender pricing process on its website. The construction firm assesses the potential client’s design package and calculates a price based exactly on what the document requests. If you’d like TPM Builders to submit a tender for your next project, call 1300 733 891.
Why Do Consumers Use the Tender Process?
According to estimator Stephen Dean, more than 80 percent of consumers rely entirely on the tender process to ensure their property assets are of the highest quality and the best value.
The tender process gives consumers clear specifications of their project. All choices are already made, which can be comforting for clients launching a complex project. As the project is fully specified, the tender process also helps clients compare different construction firms. The tender process also provides a maximum price before construction begins, so there are no nasty surprises on the project’s completion.
Developing a clearer understanding of the tender process will help you enter a commercial construction deal with confidence.