The Growing Challenge of Tenders Without Information

In his January Sign Surgery recap, Craig considers the discussion on tenders in the sign industry.

In recent years, there’s been an unsettling trend in the world of tenders, especially in private housing developments and infrastructure projects: tender packs lacking critical information.

Over the break, I reviewed a tender pack that epitomised this issue. The documentation, ostensibly a bill of quantities (BoQ), lacked something fundamental – quantities! While the absence was amusing in its absurdity, it highlighted a larger problem in the industry.

Client quantity surveyors (QS) are increasingly issuing tender packs devoid of the detail contractors need to price projects effectively. This approach often seems designed to transfer as much risk as possible to contractors. Consider these typical clauses that might sound familiar:

“Architectural drawings take precedence over the bill of quantities.”

“No additional claims will be allowed at the construction stage.”

Add to that the near-impossible submission deadlines, sometimes less than three weeks, and it becomes clear that contractors are being set up for a high-stakes guessing game.

Why this approach fails

A well-prepared BoQ, completed in accordance with a method of measurement and containing finalised quantities, is critical for both parties.

When clients skip the crucial step of preparing a proper BoQ, they often don’t realise the ripple effects this creates:

Higher Tender Costs: Contractors have to account for the unknowns, so they price in the risk. This means the project ends up costing more than it should.

More Disputes: Ambiguous tender documents lead to confusion and arguments during construction – nobody wants that.

Fewer Bidders: Many reputable contractors simply won’t bother bidding on poorly defined tenders, leaving clients with fewer (and sometimes less qualified) options.

The solution is simple: engaging experienced QS firms to prepare clear, detailed BoQs. It’s an investment that pays off by avoiding unnecessary headaches and ensuring smoother project delivery.

What contractors can do

If you’re dealing with incomplete tenders, it’s all about preparation and communication. Here’s how to protect yourself:

Raise clarifications: During the tender stage, seek detailed explanations for any vague or missing information. Document these exchanges to avoid misunderstandings later.

Submit an assumptions sheet: When submitting your tender, include a detailed assumptions sheet outlining the basis of your pricing. This creates a reference point for resolving disputes if the project scope changes.

Moving forward

The sign and graphics industry works best when there’s precision and teamwork. Clients need to understand the value of thorough tender packs, and contractors should push for fair and transparent processes. By working together and communicating better, we can leave behind the frustrations of “tenders with no information” and create a more efficient and productive industry.