Before the tender action is
carried out it is important to know the estimated cost of the project for two
reasons: first, the client will want to know that they can afford the proposed
development; and second, so there is a basis of comparison when the tenders are
returned.
The estimate, which is called the pre-tender estimate (PTE), is priced all items in the bills of quantities or schedule of rates provided to the tenderers using prevailing market rates (normally based on recent tender prices from similar projects, or supplier’s/ sub-contractor’s quotations, etc.).
The estimate, which is called the pre-tender estimate (PTE), is priced all items in the bills of quantities or schedule of rates provided to the tenderers using prevailing market rates (normally based on recent tender prices from similar projects, or supplier’s/ sub-contractor’s quotations, etc.).
The pre-tender estimate should be provided to the Employer prior to the return of tenders, preferably as soon as possible after the tender documents are issued so that potential cost overruns can be identified.
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