Parts of tender processing

Quantity Takeoff: After lining up subcontractors and arranging for the bid bond, the next-most important task is to prepare a quantity takeoff for the work to be performed in-house. The quantity takeoff is necessary to prepare material, labor, and equipment costs (unless the vendors are doing the quantity takeoff for their work) for the estimate. If the vendors are preparing quantity takeoffs for their work, the estimator should request a quote from these vendors at the same time he or she requests a quote from subcontractors. Often vendors who prepare a quantity takeoff for contractors do not guarantee that their quantities are accurate, and the estimator should prepare his or her own quantity takeoff to make sure there are sufficient quantities of materials to complete the work. If time allows, the estimator should prepare quantity takeoffs for subcontractor work where there is a concern that he subcontractor bid may not be received in time to complete the bid.

Material Pricing: Estimators often send their quantity takeoffs to vendors and request that the vendors provide pricing for the materials identified in the quantity takeoff. This requires the quantity takeoff to be completed in time to send the list of needed materials to the vendors, have the vendors price the materials, receive a quote from the vendors, and incorporate the pricing into the estimate.

Equipment Pricing: Once the quantity takeoff has been completed, the estimator can determine the equipment needs of the project and determine the cost of the equipment. This may include obtaining rental pricing or pricing company-owned equipment.

Project Overhead: Before the bid day, the estimator should prepare an estimate for project overhead for the project. Project overhead includes all costs that are associated with the project but cannot be identified with a specific component of the project's construction. The markup but should be bid as part of the project costs. The bonding costs, and sometimes the building permit costs, are based on the estimated construction costs, which are not known until the bid is completed. This requires the costs for these items to be calculated near the completion of the bid. Sales tax may be added to the individual material costs or to the material costs of the bid as a whole. When added to the material costs of the bid as a whole, the sales tax is treated as a markup and is incorporated into the bid when the material costs are totaled.