The True Cost of Leaving Things Out of Your Construction Tender

You see something missing from the drawings, something you know is essential. Leave it out of the tender, score the job, and figure it out later as an “extra”, right? Wrong. 

You’ll get found out, and fast. Everyone gets burned – especially the client. But here’s the thing: that move is more transparent than you think. 

You’ll Be Found Out Quickly

Those sneaky tactics backfire big time. It doesn’t take long for word to get out. You end up with the reputation as the contractor who always tries to pull a fast one. Trust me, that’s not what you want to be known for.

You’re setting yourself up for a world of trouble when you start cutting corners. It’s a small industry, and reputations spread like wildfire. Do you really want to be known as the one who leaves things out?

“But Paddy,” I hear you say, “all the other contractors do it!”  Nah, the smart ones don’t. They genuinely don’t. We’d see it if they did. Those successful contractors play it straight, negotiating those missing bits before the job starts. They want to get paid fairly, make a decent profit, have a happy customer and move on to the next project. And, the CIF has clear guidelines on what constitutes fair bidding practices.

“Here’s the thing: Profit isn’t a bad word.  You deserve to earn a living!”

The Taste It Leaves

Honestly, it leaves a bad taste in everyone’s mouth. Clients aren’t stupid; they can tell when they’re being shortchanged. And once trust is broken, good luck getting it back. It’s not just about this one job; it’s about every potential job down the line. One sour deal can poison the design team’s well for good. And you’re off trying to find new jobs to bid for instead of having that architect and PQS who like working with you. 

Think Long Term

You’ve got to play the long game. Sure, you might snag a job by undercutting now, but what about down the line? You risk building a reputation as the contractor who plays games, who leaves things out. And nobody wants to work with that guy. 

Remember, successful contractors aren’t the ones cutting corners. They’re the ones at the table, upfront and clear about what needs to be done, hammering out details before the first hammer swings. They’re in it to make a fair profit, and there’s no shame in that.

Profit’s Not a Dirty Word

Here’s a newsflash for you: making a profit? That’s the whole point. But there’s a right way and a wrong way to go about it. If a client wants extras, fine. Price them out, but be transparent about it. Offer alternatives. This is where your QS shines, and you make your money off them. Keep them in the loop, fully engaged, and working with you to find the best path forward.

Plus, just imagine every single contractor always cutting corners to price jobs lower. What’s going to happen? Who’s going to win the race to the bottom? Is that what you want to be? The lowest-priced contractor who barely makes a margin for all your blood, sweat and tears? Do yourself a favour and price the extras. 

Upfront and Negotiating

The real pros? They’re negotiating from the get-go. They’re not hiding the ball, hoping to sneak charges in after the fact. They lay it all out there, making sure everyone’s on the same page. That way, when the job’s done, everyone walks away satisfied, knowing they got what they paid for. And that? That’s how you build a business that lasts.

Engage Your QS

Your QS isn’t just there to crunch numbers. They’re your ace in the hole, the one who can help you navigate the tricky waters of tenders and contracts. Use their expertise. Let them guide you in offering alternatives and solutions that keep your bid competitive, without resorting to underhanded tactics.

So, What’s The Play?

So, you spot that missing item.  Instead of lowballing the tender, what do you do?  Get tactical:

  • Option 1:  The No-Nonsense “Look, seems like [thing] is needed, but wasn’t included.  Here’s how much it’ll add to the cost.”
  • Option 2:  The Problem Solver  “I spotted [thing] is missing.  We can absolutely handle that, plus here’s a few other options that might even save some money…”
  • Option 3:  The Collaborator  “Not sure if [thing] was an oversight, but wanted to flag it before we start. Should we include it, or is there another way?”

You see the theme here? Open communication, offering solutions, keeps everyone on the same page.

Final Thought

At the end of the day, it’s about integrity. It’s about building a business that stands the test of time, that earns respect in the industry. Don’t be the contractor who leaves things out. Be the one who deals straight, who wins jobs on the merits of their work and their word. That’s the contractor who doesn’t just get their foot in the door but kicks it wide open.

Whenever you’re ready, Carroll Estimating can help you manage all your QS work from tender bid to final account.

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