As a contractor, winning a tender is an exciting and rewarding experience. It means that you’ve been chosen to complete a project, and you’ll be able to put your skills and experience to work to create something great.
But winning a tender is just the beginning. There are still a lot of steps to take before you can start work on the project. In this blog post, I’ll walk you through the first 7 steps a contractor’s quantity surveyor takes when they win a tender.
Meeting with the clients and design team
After winning a tender, the first thing we need to do is meet with the client and the design team. This is a chance to get to know everyone involved in the project and to make sure that we’re all on the same page.
We’ll discuss the scope of work, the budget, and the timeline for the project. We’ll also talk about any changes that need to be made to the design.
Value engineering exercises
Value engineering exercises may be required to bring the contract in line with the client’s budget. Value engineering is a process of identifying ways to improve the value of a project without increasing its cost. This can involve things like finding cheaper materials, using less labour, or designing things more efficiently.
If you are asked or required to perform a value engineering exercise on a project you’ve won a tender for. This is a great opportunity to show the client that we’re committed to saving them money.
Retention level percentage
The retention level percentage is the amount of money that the client withholds from each payment to you, the contractor. This money is held as security in case the contractor does not complete the project to the client’s satisfaction. The retention level percentage is typically 5% to 10% of the contract value. A contractor’s QS will try to reduce that percentage as close to 0 as possible.
All in all, we need to make sure that the retention level is fair and reasonable. Too high of a retention level can make it difficult for the contractor to finance the project.
Contract review
The contract is the legal agreement between the client and the contractor. It outlines the terms and conditions of the project, including the scope of works, the payment schedule, and the liability of the parties.
We need to review the contract carefully to make sure that we understand all of the terms and conditions. We also need to make sure that there are no changes or clauses struck out or left in the contract that we disagree with.
Payment schedule agreement
The payment schedule is a plan for how the client will pay you for the work. It typically outlines when the client will make payments, and how much each payment will be.
Both parties should agree upon the payment schedule before work begins on the project. This ensures that both you and the client understand when payments will be made and how much money will be paid at each stage of the project.
Your contractor’s QS will negotiate the payment schedule with the client on your behalf if need be to make sure it’s fair and reasonable. They’ll also need to make sure that the client is able to make the payments on time.
Contract signing
Before you sign it, your contractor’s QS will ensure no clauses that will disadvantage you. Once all parties are satisfied with the terms and conditions of the contract, it is signed by the client and the contractor. This confirms that the contract is in effect and its terms bind both parties.
Site visit week one
The first thing we need to do after signing the contract is to visit the site. This is a chance to see the site in person and to get to know the project team. We’ll also use this visit to start planning the project. We’ll need to develop a schedule, estimate the cost of materials, and hire subcontractors.
Winning a tender is a great achievement, and it’s the first step in completing a successful project. By following these steps, you can help ensure that your project is delivered on time and within budget.
I hope you enjoyed this blog post. If you have any questions, please feel free to reach out here or on social media.
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4. Managing all your QS work from tender bid to final account