Pre-tender estimate for contracts
The pre-tender estimate (PTE) is the final estimate of the likely cost of the works that are described in completed tender documents prepared to seek tenders (offers) from prospective suppliers. The pre-tender estimate itself is not included in the tender documents.
It provides a final comparison with the budget, and along with the cash flow estimate enables the client to confirm that sufficient funds are available before committing to seeking tenders.
It also gives a basis for assessing and comparing tenders when they are returned.
If the pre-tender estimate exceeds the approved budget, an explanation should be provided for the client to consider and issue instructions.
As with the tender documents, the pre-tender estimate should be broken down into a series of packages (even if there will only be one main contract), this will allow easy appraisal of tenders received, which are likely to prepared by contractors based on prices of packages received from sub-contractors. It ensures that the tenders are easily compared with one another and with the pre-tender estimate, and any anomalies or potential savings identified.
The pre-tender estimate should be prepared following a standard approach to estimating such as that defined by the new rules of measurement (NRM).
NB: A post tender estimate is '…a cost estimate carried out after the evaluation of tenders to corroborate the funds required by the employer to complete the building project.' For more information, see Post tender estimate.
[edit] Related articles on Designing Buildings
- Approximate quantities cost plan.
- Bills of quantities.
- Budget.
- Business plan.
- Cash flow projection.
- Contract sum.
- Contract sum analysis.
- Cost consultant.
- Cost plan.
- Elemental cost plan.
- Estimate.
- Estimator.
- Final account.
- Front-loaded costs.
- Initial cost appraisal.
- New Rules of Measurement.
- Order of cost estimate.
- Post tender estimate.
- Tender pricing document.
Featured articles and news
How orchards can influence planning and development.
A practical guide to the use of flint in design and architecture.
Designing for neurodiversity: driving change for the better
Accessible inclusive design translated into reality.
RIBA detailed response to Grenfell Inquiry Phase 2 report
Briefing notes following its initial 4 September response.
Approved Document B: Fire Safety from March
Current and future changes with historical documentation.
A New Year, a new look for BSRIA
As phase 1 of the BSRIA Living Laboratory is completed.
A must-attend event for the architecture industry.
Caroline Gumble to step down as CIOB CEO in 2025
After transformative tenure take on a leadership role within the engineering sector.
RIDDOR and the provisional statistics for 2023 / 2024
Work related deaths; over 50 percent from construction and 50 percent recorded as fall from height.
Solar PV company fined for health and safety failure
Work at height not properly planned and failure to take suitable steps to prevent a fall.
The term value when assessing the viability of developments
Consultation on the compulsory purchase process, compensation reforms and potential removal of hope value.
Trees are part of the history of how places have developed.
Comments
what is cost reconciliation and why is there one on all submitted tenders is required before placing a contract.