Jan 74 min read

What is Estimating in Construction?

What is the purpose of estimating in construction?

The purpose of estimating in construction is to figure out how much a job will cost before starting. This includes the price of materials, tools, equipment, and paying workers. It helps make sure there’s enough money to do the work and avoid surprises. Estimating also helps plan how long the job will take and keeps everyone on the same page.

What is a take off in construction estimating?

A takeoff in construction estimating is when you figure out how much material is needed for a job. You look at the plans or drawings and count or measure everything, like how many bricks, how much concrete, or how many pipes are required. This helps you know exactly what to order and how much it will cost.

What is the tendering process in construction?

The tendering process in UK construction is how companies compete to win a job. Here's how it usually works:

Invitation to Tender (ITT): The client shares details about the project, including plans, specifications, and requirements, asking contractors to submit bids.
Preparing the Tender: Contractors review the project details, calculate costs for materials, labor, equipment, and other expenses, and may include a schedule for completing the work.
Submitting the Tender: The contractor sends their bid, which includes the price and how they plan to do the work, by the deadline.
Evaluation: The client reviews all the bids, checking prices, quality, timelines, and how well the contractor understands the job.
Awarding the Contract: The client chooses the best bid—not always the cheapest—and gives the contractor a formal agreement to start the job.

This process ensures fairness and helps the client find the right contractor for their project.

What is framework tendering in construction?

Framework tendering in construction is when a client sets up an agreement with several contractors or suppliers for future work, instead of tendering for each job separately. Here's how it works:

Framework Agreement: The client invites contractors to bid for a place on the framework. This involves showing they have the skills, resources, and good pricing for the type of work needed.
Pre-Approval: Contractors who win a spot on the framework are pre-approved to work for the client over a set period, like 4 years.
Call-Off Contracts: When a specific job comes up, the client either:
- Directly awards the job to a contractor from the framework, or
- Runs a "mini-competition" within the framework to get the best deal for that job.
No Guarantee of Work: Being on the framework doesn’t guarantee work—it just means the contractor is in a good position to be chosen.

This method saves time and money because the client doesn’t have to run a full tender every time they need work done. It’s often used for long-term projects, maintenance, or repeat types of work.

How are tenders priced?

Tenders are priced by estimators, who are experts in working out the cost of a construction project. Here’s how they do it:

Review the Tender Documents: Estimators study the plans, specifications, and any instructions from the client to understand the job.
Takeoff: They measure and count all the materials, labour, and equipment needed for the project. This helps them calculate the quantities.
Material Costs: Estimators check the prices for materials, like concrete, steel, or bricks, often getting quotes from suppliers.
Labour Costs: They work out how many workers are needed, how long the job will take, and what the wages will cost.
Equipment Costs: They include the cost of any machines, tools, or equipment required for the job.
Overheads and Profit: Estimators add the company’s running costs (overheads) and a margin for profit.
Risk and Contingencies: They allow for unexpected problems, like delays or price increases, by adding a bit extra.
Final Tender Price: Once everything is added up, the estimator puts it all together into a clear price for the job. This is the tender submission.

The goal is to offer a competitive price that covers all costs and allows for a profit, while being low enough to win the job.

What are clarifications and exclusions in tenders?

Clarifications and exclusions in tenders are ways to make sure everyone understands what is included and what is not in the contractor's bid:

Clarifications:

These are explanations or extra details the contractor provides to make things clear.
For example, if something in the tender documents is unclear or open to interpretation, the contractor may explain how they’ve understood it.
Clarifications ensure there’s no confusion about what is being offered, like how certain tasks will be done or what assumptions were made in the pricing.

Exclusions:

These are specific things the contractor has decided not to include in their price or scope of work.
For example, if the tender documents mention landscaping but the contractor isn’t pricing it, they will list it as an exclusion.
Exclusions help avoid misunderstandings about what the contractor is responsible for, making sure both sides know what’s not covered.

Both clarifications and exclusions protect the contractor and client by making the tender details as clear as possible before work begins.

How Holmwood can help you price Tenders

At Holmwood, we specialize in helping businesses price tenders accurately and efficiently. Here’s why choosing us is a smart move:

Cost-Effective Alternative to Hiring In-House

Hiring a full-time in-house estimator can be expensive when you factor in wages, training, and other overhead costs.
With Holmwood, you only pay for the estimating services you need, making it a much cheaper and more flexible option.

Over 50 Years of Combined Industry Experience

Our team brings over half a century of combined expertise in construction estimating across various sectors.
We understand the challenges of tendering and use our knowledge to provide detailed, competitive, and reliable pricing.

Trusted by a Range of Clients

We already work with a variety of clients, from small contractors to larger companies, tailoring our services to meet different needs.
Whether it’s a one-off project or ongoing support, we’re here to help.
By partnering with Holmwood, you gain access to professional estimators without the long-term cost of an in-house team, backed by decades of experience and a track record of success. Let us make your tendering process simpler and more cost-effective.

If you would like to speak to one of our consultants to get a quote for a tender or would like to learn about ways we can help being in more tenders please contact us below.