4.0 TENDERING
4.1 TENDER PROCESS
The tendering process is where as an owner builder you can really make or save money (or waste it!!).
Many trades people and suppliers are reluctant to work for owner builders for a variety of reasons.
This is overcome by establishing a professional relationship and demonstrating your capacity to manage the project.
Being prepared, well informed and demonstrating a thorough understanding of your project will not only get good contractors on side, but also send a warning that you are not an easy mark.
The tendering process is where the true discipline and astute purchasing can make all the difference between a project that struggles to meet budgets and one that allows you the freedom to select better fittings, fixtures or fitments and still meet the financial targets you have set.
Managing this part of your project certainly requires commitment, but these basic rules are simple to follow and ensure success in achieving your budget estimates.
- Select the suppliers and contractor you wish to provide offers and quotations, based on recommendations, referrals or interviews which establish bona fides and an ability to complete the works to the required standard and specification.
- Select and minimum of three contractors or suppliers to quote on your works.
- Schedule sufficient time for the tendering process to ensure a minimum of three offers can be obtained for each supply of trade contract.
- Understand your specifications and schedule of finishes, and examine each offer or quotation carefully to ensure:
- Each offer or quotation complies and meets the requirements of the specification
- Satisfy yourself you are comparing apples with apples
The tendering process if conducted properly will involve photocopying multiple sets of plans and specifications for the individual contracts.
This could involve up to 50 sets of drawings distributed to your selected or nominated contractors.
Typically this would involve:
- Identifying the trades and or materials/PC Items that are required
- Select a minimum of three suppliers and or contractors
- Prepare tender documents including:
- Invitation to Tender
- Working Drawings
- Specifications
- Schedules of Finishes
Typically you will need to chase and chase and chase relentlessly, contractors and suppliers to provide their offers.
As difficult as this may seem, it is the heart of making your project work.
If you can truly get this right, the rest is relatively easy.
You will need to hound and press and chase all your contractors to get all three quotes.
If you end up with only two, select an alternative and chase them.
Do not settle for less than three relevant and realistic quotations.
Be aware, when things are good in the building industry, many contractors will provide “high ball” quotations that indicate they will only take on the project at a premium.
The following proforma are provided by Abacus Training and BuiltByU to assist you in the tendering process.
Following is a sample of each and a brief explanation on their use.
NSW Owner Builder Tender Control Schedule
The Tender Control Schedule shown above is accessible from the downloadable file, we recommend that you print a copy of this form and use it to manage the tender distribution process.
It differs from the Tendering Schedule provided in that one is used for distribution document control and the other is used to gather the receipted offers from various suppliers, contractors and consultants.
Use the Tender Control System to record your efforts in chasing contractors for their prices, and note their comments and as quick access to contact details.
Use the Tender Schedule to collect and compare received offers.
It differs from the Tendering Schedule provided in that one is used for distribution document control and the other is used to gather the receipted offers from various suppliers, contractors and consultants.
Use the Tender Control System to record your efforts in chasing contractors for their prices, and note their comments and as quick access to contact details.
Use the Tender Schedule to collect and compare received offers.
4.2 PLANS and SPECIFICATIONS
Plans and specifications are the normal means by which we transmit information to those completing our works.
The more detailed and inclusive the plans and specifications, the easier it is for the contractors to understand the finishes and structural components of the project.
We have already discussed how to read and interpret plans in a previous section.
Plans need to be detailed and accurate as appropriate and include required information in respect to specifications.
Some project drawings are supported with a detailed written specification that identifies all finishes, standards, codes and systems to be employed in the construction of the dwelling.
The full text sample specification is provided and accessible from the resources download page on the website.
4.3 TENDERING SCHEDULE
The Tendering Schedule is used for the collection and comparison of received offers.
The Contractor details are included and acceptance of tender is noted.
The final column allows for the entry of received quotation amount against the budget estimate.
The completion of this information gives a good understanding of the budget position of the project prior to commencement.
An area of large discrepancy in this column may need a reassessment of the quotations and possibly a review of your expectations in respect to fittings, fitments, fixtures for the particular trade.
A tutorial demonstrating the use of the Tendering Schedule is available from the resources download page on the website.
NSW Owner Builder Tender Schedule
4.4 LETTERS of ACCEPTANCE
The following format is a suggested formal advice to contractors of their successful offer.
It is likely you will have been in negotiation via phone or facsimile prior to the issuance of this correspondence, but it is important in terms of record keeping and the completed acceptance should be retained in the associated trade contractors file.
4.5 UNSUCCESFULL TENDERS
NSW Owner Builder Tender Unsuccessful