As a contractor, you’ve probably received a tender analysis from an architect as part of the tender process. But should you trust this analysis?
In short, no, you shouldn’t trust an architect’s tender analysis.
Architects, while experts in design and concept development, are not quantity surveyors (QS). They don’t have the same expertise in pricing construction projects.
As a result, their tender analysis is likely to be inaccurate and unreliable. While these analyses serve as valuable insights, relying solely on them can be detrimental to your financial and professional success.
Here are a few reasons why you shouldn’t trust an architect’s tender analysis:
- They don’t measure and rate the work.
Architects typically base their analysis on the drawings and specifications, but they don’t actually measure and rate the work themselves. This means their analysis is based on assumptions and estimates, which can be very inaccurate.
- They don’t understand the contractor’s perspective.
Architects don’t have the same understanding of the contractor’s costs as a QS does. They may not be aware of all the factors that can affect the price of a project, such as overheads, profit, and risk allowances.
- They don’t consider the contractor’s market position.
Architects may not be aware of the current market conditions, which can significantly impact pricing. For example, if there is a shortage of labour, contractors may be able to get higher prices for their work.
Here’s a table that represents why architects may not consider contractor’s market position:
| Factor | Why it affects pricing | Example |
| Labour shortage | Contractors can charge higher prices due to increased demand for their services. | If there is a shortage of skilled labor, contractors may be able to get higher prices for their work, as they will be in high demand from developers and homeowners. |
| Material prices | A rise in material prices can lead to increased costs for contractors, which may be passed on to the client. | If the price of timber or steel goes up, contractors may need to raise their prices in order to cover the increased costs of materials. |
| Economic conditions | A strong economy can lead to higher demand for construction projects, which can drive up prices. | During a strong economic period, contractors may be able to get higher prices for their work, as there will be more demand for their services. |
| Competition | A competitive market can put downward pressure on prices. | If there are many contractors bidding on a project, they may be forced to lower their prices in order to win the contract. |
So, what can you do to protect yourself from inaccurate tender analysis?
- Do your own research.
Take the time to read the drawings and specifications carefully and get quotes from multiple subcontractors. This will give you a better understanding of the project’s true cost.
- Be prepared to negotiate.
Don’t just accept the architect’s tender analysis as the final word. Be prepared to negotiate with the architect to get a better price.
- Choose a QS you trust.
When you’re looking for a QS, choosing someone with a good reputation and experience in your industry is essential.
- Break down the BOQ.
The BOQ is a list of all the work that needs to be done on the project. Break it down into smaller elements and get quotes for each component. This will give you a better understanding of the project’s actual cost.
- Look for hidden costs.
There are often hidden costs associated with construction projects. For example, you may need to pay for scaffolding, temporary traffic management, and permits. Make sure you factor in these costs when you’re pricing the project.
- Get a written agreement.
Before you start work, make sure you get a written agreement from the architect that clearly outlines the scope of work, the price, and the payment terms.
By following these tips, you can protect yourself from inaccurate tender analysis and get a fair price for your work.
Additional tips for a robust tender analysis
- Leverage construction management software and cost estimation tools for more accurate and efficient analysis.
- Regularly update your knowledge of market conditions, material costs, and labour rates to ensure your analysis remains relevant.
- Build relationships with suppliers for better pricing and more accurate quotes.
- Stay informed about new construction methods and materials that could affect project costs.
- Consider having a legal expert review contracts and agreements to protect your interests.
- After completing projects, analyse the differences between estimated and actual costs. This feedback can improve future tender analyses.
Conclusion
In conclusion, while architects play a critical role in a project’s design and conceptual phases, their tender analysis may not always reflect the true costs from a contractor’s perspective.
By taking a proactive approach – conducting your own analysis, negotiating, choosing the right QS, and paying attention to the finer details – you can ensure a more accurate and profitable engagement in your construction projects. Remember, thorough preparation and informed decision-making are key to success in the competitive world of contracting.
What do you think? Should you trust an architect’s tender analysis?