Wednesday 25 November 2009

Tender Prices

As noted in a previous blog, we recently tendered a small extension with 5 building contractors. At first glance there was a 24% difference in the lowest and highest tender price, with the 3 middle tenderers very closely matched. (which would indicate the actual tender price) These 3 were between 10-14% above the lowest tender price. The building contactor of the lowest tender has been back, to advise that there is an error in their price, and that the actual price should be 7.5% more than the one submitted in their tender, however under the Code of Practice for Tendering and Contractual Matters 2006 published by the Liaison Committee, the contractor is required to either stand over the tender price submitted or withdraw their tender. It is most probable that they will withdraw as they have advised that their tender price is suicidal or in any case we will be recommending to the client not to appoint the lowest tender as the tender price is insufficient to complete the project. The price is coming in at €135/sq foot, excluding PC Sums for sanitaryware / tiling and painting however it involves a lot of manual work due to restricted access and alteration works internally to the existing dwelling. We are currently waiting to see if the client will proceed with the project.

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