SECRET TO SUCCESSFUL TENDERING IN THE CONSTRUCTION INDUSTRY

Tendering for any project takes a great deal of consideration and attention. Although it is an important task which is completely instrumental to securing a project, it can be time-consuming. And, depending on the scale of a project and size of a company, the tendering process can be extremely varied. With this in mind, what are the hidden secrets to efficient and accurate job costing and estimating? How can construction estimating software ensure better visibility and traceability throughout the tendering process? Is there one solution which can truly streamline these complex processes?

Setting the scene

Once a contractor has meticulously analysed whether a potential project is feasible, the tendering process can begin. Tendering processes vary from company to company but typically there are two formulas, ‘open' or ‘restricted' tendering. Whereas open tendering means applications can be received from a number of contractors, restricted tendering is limited to invited parties only.

Even though there are two different methods such as these, there is one area which is a mainstay for all construction projects: the creation of a product library.

To build a product library, the following methods can be adopted. Whereas smaller contractors might use a directory such as Laxton's SMM and NRM price books, larger contractors might use this reference as a way to benchmark their own, or their subcontractors' rates. For more specialist contractors, they might follow their own methods and only use a price book to help calculate the cost of work outside their usual scope.

When ready to estimate for a particular project, the relevant items and resources from the product library are selected and converted into a BOQ (Bills of Quantities) – a crucial statement holding important project information such as prices and resource build up information of materials, labour, quantities and dimensions. Depending on the contractor's preferred method, they can either create the BOQ themselves, or disseminate to subcontractors for price-approval.

In all of these situations however, collating estimates for different parts of a project is a long process which takes time, attention and plenty of correspondence.

Streamlining this process

This initial cost estimation is vital to the overarching tendering process, but without the right resources it can be heavily time-consuming. Usually, a contractor might be juggling multiple tender applications at one time, which means there is double, even triple the amount of data recorded across various spreadsheets. Handling this level of data comes with storage and security risks, particularly as the spreadsheets cannot be easily recovered should they be mislaid. Adding to this, spreadsheets are consistently sent back-and-forth between contractor and subcontractor during the estimation process. And, as this method means information can be difficult to collate and track, accuracy might be compromised. For such a crucial process, this carries too much uncertainty and risk.

Whilst these manual processes can work quite successfully for some construction companies, there are other approaches designed to streamline these tasks.

What is the secret?

To streamline processes, including the creation of product libraries, construction estimating software such as Eque2's EValuate can help you to describe, measure and price tenders without duplication of effort. EValuate is also integrated with Laxton's Priced Libraries which provides resource build up's with annually updated rates for pricing items directly, or for comparison with your rates or subcontractor rates which is compatible with both SMM and NRM rules of measurement.

A solution such as EValuate expedites the tendering process so companies can move on to secure more work. With this solution, a contractor can tend for multiple projects as they have the time and resource to do so. Conversely, for a company receiving the tender, they can accurately benchmark the costs against other sources to ensure they achieve the right price for a project.

Therefore, modern estimating software such as EValuate incorporated with Laxton's Priced Libraries is an efficient and user-friendly tool which cleanses an otherwise long and complex tendering process. For construction companies, it is a solution which enhances business productivity as opposed to disrupting it. With added benefits including data security, accuracy and performance efficiency, EValuate can be accessed by all parties involved to assure consistency across the board.

For larger companies with multiple estimators working on multiple projects across different sectors, an unrivalled solution such as EValuate ensures data can be accessed and stored in one secure location. Evolving with industry changes, this innovative software is revolutionising the construction industry's tendering process, helping to reduce risk, save time and win more work.

Visit: https://www.eque2.co.uk