Astrid Madsen
Undertaking a renovation or extension project is an exciting endeavour, but it comes with a crucial question: how much will it cost to bring your dream home to life?
Understanding Tender Costs
Before diving into the specifics of tendering, it’s essential to grasp the concept of tender costs. Tender costs refer to the estimates provided by contractors or builders for the construction work. These estimates encompass both labour and materials and are based on the project’s specifications, including lighting schedules, heating systems, ventilation, and more.
When it comes to determining these costs, there are several approaches:
1. Professional Help: Chartered Quantity Surveyor
One option is to seek professional assistance from a Chartered Quantity Surveyor. They specialise in accurately assessing construction costs based on your project’s detailed specifications. While this ensures precision, it can be time-consuming and may come with additional fees.
2. DIY Estimation
Another approach is a do-it-yourself (DIY) estimation, where you attempt to calculate the costs of individual items yourself. However, this method can be challenging, time-consuming, and may lack accuracy, especially if you are not experienced in construction cost estimation.
3. Builder Quotes
You can also directly approach builders and request quotes based on your project plans. Builders typically provide estimates that encompass both labor and materials. It’s crucial to communicate your expectations clearly, including whether you want a breakdown of trades or an elemental breakdown.
4. PC Sums (Prime Cost Sums)
In situations where specific items are yet to be determined, PC sums come into play. PC sums allocate a budget to items that are yet to be fully specified, such as the kitchen. Your architect, quantity surveyor, or builder can provide you with PC sums. However, it’s essential to communicate the desired quality of finish for these items, as PC sums may not always be entirely accurate. Any variations from the estimated budget will result in additional costs. Be clear about your essential needs versus nice-to-have items, and consider a separate budget for the latter.
The Tendering Process
Once you have a clear understanding of tender costs, the next step is to initiate the tendering process. Most self-builders, particularly those hiring a main contractor, will go through a tender process. Here’s an overview of the key steps in a standard tendering process:
1. Tender Documentation
The success of your tender largely depends on the quality and completeness of the documentation you provide. This documentation, known as the tender documents, will vary based on the type of contract you choose. The goal is to ensure that all contractors price the project consistently, facilitating fair comparisons.
2. Builder Selection
Compile a list of builders whom you will invite to submit their prices. Local builders, recommendations from your design team, friends, family, or advertisements in magazines and social media can be sources for finding potential contractors. It’s standard practice to send your tender to at least five contractors for a competitive result.
3. Tender Analysis
Contractors typically take two to three weeks to prepare their tenders. Specify a clear deadline for receiving tenders. After the submission deadline, you’ll analyse the received tenders to assess pricing, qualifications, and references.
4. Post Tender Negotiation
Following the initial tender analysis, you may engage in negotiations with contractors to clarify any elements of their tenders. These discussions can help identify potential issues in the project or design and establish a better understanding of the contractor’s approach.
5. Final Selection and Contractor Appointment
Once negotiations are complete, you can select the preferred contractor. The selection can be based on various criteria, such as price, quality of previous work, proposed project duration, or a combination of factors. The chosen contractor will then sign the contract, formalising the partnership to complete the project.
Pricing the Build: Contract Methods
In Ireland and Northern Ireland, two common contract methods prevail in the construction industry: the “Drawings and Specification Contract” and the “Remeasurable Contract.” Each has its advantages and considerations:
Drawings and Specification Contract
This contract places the responsibility on the tendering contractor to ensure that their submitted price fully covers all necessary items. It is suitable when project drawings are highly detailed, and specifications leave no room for interpretation. However, it can lead to discrepancies if different contractors interpret items differently.
Remeasurable Contract
A remeasurable contract is typically accompanied by a bill of quantities, providing a comprehensive list of all required items and measurements. Contractors insert prices for each item, ensuring that nothing is overlooked. This method allows for precise cost comparisons and highlights price anomalies.
In both contract methods, contractors must thoroughly check the quantities and clarify any discrepancies to ensure accuracy.
Choosing the Right Builder
Selecting the right builder for your renovation or extension project is a crucial decision that can significantly impact the project’s success. Here are some steps to help you make an informed choice:
1. Sourcing Builders
Find potential builders through various channels, including on-site hoardings in your local area, recommendations from your design team, friends, family, or advertisements in publications and social media.
2. Competitive Tendering
Send your tender to at least five contractors for a competitive outcome. Be clear about the cutoff date for receiving tenders.
3. References and Insurance
Ensure that shortlisted contractors provide references that you can independently verify. Verify that they are fully insured and tax-compliant.
4. Face-to-Face Meetings
Arrange meetings with potential builders to discuss their tenders, seek clarification on any project or design aspects, inquire about the expected project duration, and assess whether you can work effectively with them.
5. Decision Factors
The final decision on the preferred contractor can be based on various factors, including price, quality of past work, project duration, and personal compatibility.
Renovation and extension tender costs play a pivotal role in determining the success of your home improvement project. Understanding how tendering works, choosing the right contract method, and selecting a qualified builder are essential steps to ensure that your project stays within budget and meets your expectations.
Remember that a well-planned and executed tendering process can lead to a successful partnership with a reputable builder, making your dream home a reality. Clear communication, thorough documentation, and informed decision-making are your allies in achieving a renovation or extension that enhances the comfort and value of your home.
