Chapter 2 of Construction Project Management: A Practical 10-Step Guide.
Construction Tendering: The Start of Every Successful Project
Every construction project starts with a fundamental question: What will this cost? Whether you’re preparing a tender for a client or selecting subcontractors, procurement is the first—and arguably the most important—step in ensuring financial accuracy and project success.
Yet, this is where most projects set themselves up for failure. Estimates are rushed, vendor selections are based on incomplete information, and procurement becomes a reactive scramble rather than a structured process.
Most construction teams treat tendering as a necessary evil—just a box to check before moving on. But that mindset is exactly why projects run over budget, schedules fall apart, and profit margins shrink.
Tendering isn’t a formality. It’s risk management.
And if you don’t optimise your process, you’re setting yourself up for problems before the project even starts.
This guide is designed as a repeatable playbook—something you should review before every project to make sure you’re not making the same avoidable mistakes.
Why Tendering Right Matters (More Than You Think)
At its core, construction tendering has two objectives:
- Estimating project costs for your client tender
- If you don’t have an accurate cost breakdown, you’re guessing. And guessing leads to undertendering and lost profit or overtendering and lost contracts.
- Finding the best subcontractors and suppliers
- The cheapest tender isn’t always the best tender. You need subcontractors who deliver quality work, on schedule, at a fair price. Not just someone who looks good on paper.
Most teams focus on getting a tender out the door as fast as possible.
Instead, you should be building a competitive advantage.
The best construction firms don’t just tender. They tender smart.
Step 1: Define the Scope Before You Request Tenders
Most tender requests fail before they’re even sent.
Why? Because they’re based on unclear, incomplete, or outdated information.
Think about it:
- You send out a vague RFT (Request for Tender).
- Every subcontractor interprets it differently.
- You get wildly inconsistent tenders that are impossible to compare.
The result? You either guess which tender is most accurate or spend weeks clarifying details that should have been in the RFT from the start.
Before You Request Tenders, Ask Yourself:
Have I clearly defined materials, labour, and subcontractor responsibilities?
Have I accounted for market risks (price fluctuations, material delays)?
Am I providing enough detail so every bidder is pricing the exact same scope?
If you don’t have clear answers, you’re not ready to send out RFTs.
Step 2: Identify the Right Subcontractors and Vendors
Not all bidders are created equal. The biggest mistake quantity surveyors make?
Thinking that more tenders = better choices.
Reality check:
- More tenders = more time wasted sorting through junk.
- More tenders = more low-ball offers that look good but cost you later.
The goal isn’t to get the most tenders. It’s to get the right tenders.
How to Find the Right Vendors & Subcontractors
✔ Leverage past data – Who delivered good work before? Who caused the problems?
✔ Expand your network – Don’t get trapped relying on the same three vendors.
✔ Prequalify bidders – If they don’t have the capacity or experience, don’t waste time.
Pro Tip: If you send tender requests to everyone, you’re doing it wrong.
Step 3: Structure Your RFTs for Faster, More Accurate Tenders
A good RFT doesn’t just ask for a price—it guides bidders toward providing the right details in the right format so you can compare them quickly.
What Every RFT Should Include:
- Scope of work – What exactly is being quoted?
- Timeline – Start and completion dates.
- Payment terms – Milestone-based? Monthly? Upfront deposits?
- Tender breakdown format – Do you want fixed price pricing or itemised costs?
The more structured your tender request, the easier your job becomes.
Step 4: Follow Up—Because Most Vendors Will Forget to Submit
Here’s the reality: most vendors won’t submit their tenders on time.
Subcontractors are busy. Your RFT is just another email in their inbox.
You’re losing good tenders by default if you’re not following up.
Don’t just send reminder emails. Pick up the phone.
- Confirm they received the RFT.
- Ask if they have any questions.
- Get a verbal commitment that they’ll submit a tender.
This one small step increases your response rate dramatically.
Step 5: Compare Tenders Properly (And Avoid the “Cheapest Wins” Trap)
Once the tenders are in, the real work begins.
Most teams default to the lowest tender.
Bad idea.
A good tender comparison sheet helps you:
- Normalise tender formats – Every subcontractor structures pricing differently. Break it down so you’re comparing apples to apples.
- Spot missing costs – Some vendors deliberately leave out costs to look cheaper.
- Assess risk – What’s the subcontractor’s track record? Cheap doesn’t mean reliable.
Pro Tip: The lowest tender often leads to the highest costs later. If a number looks too good to be true, it probably is.
Step 6: Negotiate & Lock In the Best Partners
Now that you have your shortlist of strong candidates, it’s time to negotiate.
- Lock-in material pricing – If the market is volatile, get guaranteed rates.
- Clarify penalties – What happens if a subcontractor delays the job?
- Discuss variations – How will scope changes be handled?
Once your contracts are signed, don’t forget the other bidders.
Send a Rejection Letter to Unsuccessful Bidders
Most quantity surveyors ignore this step—but they shouldn’t.
Why?
- It maintains good relationships with subcontractors for future projects.
- It shows professionalism and transparency.
- It helps vendors understand why they weren’t selected—which can lead to better tenders next time.
Pro Tip: Keep it short, polite, and professional. You don’t need to justify your decision, but you can offer brief feedback if it’s helpful.
Example:
“Thank you for participating in our recent tendering process. While we’ve selected another contractor for this project, we appreciate your effort and hope to collaborate on future opportunities.”
Ignoring bidders after they’ve invested time and effort in submitting a proposal damages your reputation. A simple email keeps the door open for future work.
Key Takeaways: What to Review Before Every New Project
- Your tenders are only as accurate as the information you provide.
- A strong tendering process saves money and headaches down the road.
- The lowest tender is rarely the best tender.
- Following up with vendors increases response rates.
- Comparing tenders properly is the difference between profit and disaster.
This is a repeatable process.
Refine it, use it, and avoid costly mistakes before your next project.
About the Author
With over 20 years in construction project management, the author has led multi-million-pound projects across residential, commercial, and infrastructure sectors. His experience in tendering, procurement, and contractor selection ensures practical, real-world advice for quantity surveyors who want to optimise costs and execution.
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Go to the Construction Project Management: A Practical 10-Step Guide.