Contractor pre-tender stage planning

The contractor's pre-tender planning decides whether to bid and at what price. Steps:

1. Tender notice study: reading the notice and deciding whether the work suits the contractor's experience, capacity, finance and workload.
2. Collecting documents and checking the eligibility or pre-qualification requirements.
3. Studying the tender documents: drawings, conditions of contract, specifications, BOQ, bid security and time for completion. Risk clauses, such as liquidated damages and payment terms, are noted.
4. Site visit and investigation: access, ground, water, power, labour and material sources, local rates, weather and nearby facilities. Attend the pre-bid meeting and ask for clarifications.
5. Method statement and construction planning: select the construction methods and equipment, prepare a preliminary programme (bar chart/CPM) and check the duration.
6. Resource planning: plan labour, materials and plant, including quotations from suppliers and subcontractors.
7. Cost estimating: direct costs from quantities and rate analysis, site overheads, head office overheads, contingency, risk and profit; estimate the cash flow and financing cost.
8. Bid decision: a management review of risk and competitors' position, then the final bid price.
9. Preparing the bid: completing the forms, bid security and required documents, and submitting before the deadline.