The Risks of Not Using a Proper Tender Process in Construction Projects

In a well-managed construction project, the tender process is structured to ensure that contractors price the same scope of work consistently. When this process is properly followed, it enables meaningful comparison between tenders and supports informed decision-making.

However, in some projects, clients attempt to obtain comparative prices without implementing a formal construction tender process, often by issuing incomplete information or relying solely on drawings without detailed measurements.

This approach introduces significant risks that can affect both project cost and delivery.

Lack of Comparability Between Prices

One of the most immediate consequences of an informal or incomplete tender process is inconsistent contractor pricing.

Without a clearly defined scope of work—typically set out in a bill of quantities—each contractor must interpret the drawings independently. This often results in:

• different assumptions about quantities

• varying levels of detail included in pricing

• inconsistent treatment of provisional items

As a result, the prices received cannot be reliably compared on a like-for-like basis.

Increased Risk of Omissions

Where the scope of work is not fully measured and documented, there is a higher likelihood that elements of the work will be omitted from the contractor’s price.

These omissions are often only identified during construction, at which point they become variations. This can lead to:

• unexpected cost increases

• disruption to the construction programme

• tension between the client and contractor

A properly prepared bill of quantities significantly reduces this risk by clearly defining the scope of work.

Greater Potential for Disputes

Ambiguity in tender documentation often carries through into the construction phase.

If contractors have priced the work based on differing assumptions, disagreements may arise regarding what was included in the original contract sum. These disputes can relate to:

• scope interpretation

• valuation of variations

• responsibility for omitted items

A structured tender process helps establish a clear contractual baseline, reducing the likelihood of such disputes.

Unbalanced or Front-Loaded Pricing

In the absence of a bill of quantities, it becomes more difficult to analyse how a contractor’s price is distributed across the project.

This creates a risk of:

• front-loading of preliminaries or early-stage work

• underpricing of key elements

• distorted cash flow profiles

These issues can have financial implications for the client during construction.

Reduced Cost Control During Construction

A formal tender process, supported by a bill of quantities, provides a framework for ongoing cost management.

Without this structure:

• valuing variations becomes more complex

• interim payments are more difficult to assess

• tracking expenditure against budget is less precise

This can compromise the project team’s ability to maintain effective financial control.

The Role of the Quantity Surveyor

The quantity surveyor plays a central role in establishing a proper tender process.

This typically includes:

• preparing detailed measurement documentation

• compiling bills of quantities

• managing the tender process

• analysing and comparing tenders

By ensuring that all contractors price the same scope of work, the quantity surveyor enables fair comparison and supports sound procurement decisions.

Conclusion

Attempting to obtain comparative prices without a structured tender process introduces significant risk into a construction project.

A properly managed tender process—supported by accurate measurement and clear documentation—remains essential for achieving cost certainty, transparency, and fair comparison between contractors.

For clients seeking to manage risk effectively, the involvement of a quantity surveyor in the tender process is critical.

Sources

1. Construction Industry Development Board (CIDB).Construction Procurement Best Practice Guidelines.

2. Joint Building Contracts Committee (JBCC).Principal Building Agreement and Tender Documentation Practice.

3. Association of South African Quantity Surveyors (ASAQS).Guidelines on Bills of Quantities and Tendering Practice.

4. Ashworth, A., Hogg, K., & Higgs, C.Willis’s Practice and Procedure for the Quantity Surveyor.

5. Cartlidge, D.Quantity Surveyor’s Pocket Book.