What does the Tender Phase look like?
Ideally, we'd all quote a job and know within 24 hours where we stand, but the industry doesn't work like that. Let's take a look at the average tender lifecycle for a $20m apartment project.
The tender timeline:
1. Tender period - 4 weeks
These four weeks are the open bidding period where the estimator seeks quotes on the noticeboard. This is where the bulk of your quote requests will come from.
2. Tender close - 2 weeks
The builder submits their estimate to the client side PM/architect. The client spends a few weeks comparing the bids and trying to find an average price between them.
3. Value management & clarification - 4 weeks
The client comes back to the builders with new design options and a list of clarifications. At this point, you will often hear from the estimator requesting cost options and further clarifications. Sometimes it's as complicated as putting a whole new quote together because the client has changed some key items.
4. Contract negotiation - 2 weeks
The client will pick their preferred builder and issue a letter of intent. This states they are successful, pending contract review and negotiations.
5. Project handover & construction management plan - 4 weeks
The estimator will hand the project off to the contracts administrator (CA) who will review all pricing against the latest designs from the architect. At this point, the estimator is no longer involved in the project and has moved on to other tenders. Early trades such as piling and retention, concrete structure, and hydraulic services are usually brought onto the project now.
6. Site mobilisation - onwards
The delivery team starts on-site and begins looking at the balance of trades over the next few months.
