Construct | Tenders or Costplus

To Tender or Negotiate?

At Construct, we welcome the opportunity to bid and work on your project. We know from experience that there are many ways to manage a project, so we never take the 'one size fits all' approach. Construct is available to help you determine the best fit, starting right from the best way to manage your project.

The Tender System:
Tendering is a traditional way to price a project, at Construct we are happy to go through the tender process if that's your preferred option. This method of contractor selection relies on complete plans and specifications (which often they are not) and usually the lowest price is accepted. From the clients point of view, this appears to provide the cheapest price, however other aspects of the project can be ignored. Often the initial price bears little resemblance to the final project price as variations are awarded during construction. These variations may arise due to many different/unknown reasons and it is the client that has to bear the brunt of the unknown factor which puts them in a position of risk. This system excludes from the project team one of the key players, the builder.

The Negotiated System:
A negotiated contract is more of a team approach. Construct is brought in as part of the project team at an early stage. This gives the project the benefit of our construction expertise and since the major cost component of a project is usually the building cost it makes sense to include the construction experts in the team during the time major decisions are made. The team has the maximum ability to minimize costs and maximize value to the client.

In a traditional tender situation, the client carries most of the risk in respect of cost and time. In a negotiated contract, Construct can save costs by identifying and dealing with potential problems before they occur and optimizing solutions.

What are the benefits of a Negotiated Contract?

Known Costs
Experience can save Money
Up to Date Knowledge
Purchasing Power
Time Saving

Talk to us about what best suits your project.