Tender Trap
Everyone blames inflation or labour shortages when projects run over budget. But the real leak? It often starts before the first shovel hits the ground – in the tender process.
Where’s the biggest loss?
- Ambiguous scopes that invite claims.
- Evaluation criteria based on lowest price, not best value.
- Subcontractor bids taken at face value, without structured benchmarking.
- Generic contract terms that fail under real project pressure.
What’s the Root Cause?
Too many businesses treat tendering as a race to the finish line – get documents out, get bids back, award. The problem? Speed replaces strategy. Without structured evaluation models, market intelligence, and risk-weighted scoring, you’re building cost overruns into the job from day one.
One client case study:
We supported a developer who discovered that their lowest-bid subcontractor was 18% underpriced compared to the market average. Six months later, the same subcontractor submitted £1.2m in variations to recover costs. A tighter tender evaluation process would have flagged the risk before award.
Clarity Creates Control
Strong tendering isn’t about slowing projects down – it’s about reducing risk. The best commercial teams use:
- Transparent scoring models that stand up to audit.
- Structured risk reviews of every tender return.
- Contracts that reflect the realities of delivery, not just boilerplate clauses.
Final Thought
If you want fewer disputes and stronger delivery confidence, start with your tendering strategy. Weak procurement doesn’t just cost money – it kills trust, time, and margin.
#Tendering #ConstructionProcurement #CommercialManagement #ProjectControl #GinjoConstruction #QSInsights”
