Contract & Procurement Advice
Many important decisions need to be made before your project gets issued for tender which may have cost implications for your project. Quantity Surveyors help to guide you through decisions and develop a procurement strategy based on the client’s needs. (link to form of contract article) Procurement advices can cover not only the form of contract, but stipulations that will be included in the contract such as the use of union vs. open-shop labour, prequalification of bidders.
Tender Addendum Management
After the project has been issued for Tender, it is normal that clarifications or additional details are called for with respect to the tender documentation, specifications and drawings. The lead designer prepares addenda to tender package in response to these requests and the Quantity Surveyor reviews each addendum to advise the client of the cost impact of this change. Addenda review can take place before or after the official release of the addendum.
When it comes to awarding a project to the contractor, it may be first instinct to select the bidder based on cost. However, the lowest cost does not necessarily mean they are the right bidder. A Tender Analysis involves evaluation of the bidders’ exclusions, qualifications, or clarifications and their cost implications, determining item-by-item variances between the budget and the tender, and examining if any significant variations may be the result of a scope of work error. Identifying these variations before the contract is awarded is beneficial to prevent costly post-contract changes. It is best if parties to the contract are on the same page before the contract is signed, rather than exposing both parties to the risks of assumptions.
Quantity Surveyors, working with the Owners, Designers, and Project Managers can develop the evaluation criteria or scoring model to review both financial and non-financial aspects of the bid, including the contractor’s relevant experience, proposed staff, references, schedule, and safety policies. Choosing a contractor based on best value, not just cheapest tender, will help to ensure the right person is doing the job, for the right price.