The State of Construction Bidding, Tendering and Pricing Report (2018)

Quantity Takeoff: How Long Does It Take?

13% of respondents say it takes less than one week to create a bill of quantities for a typical project.
49% say it takes them 1-2 weeks.
30% say it takes them 3-4 weeks. 8% say it takes 5 weeks or longer.

For almost 9 out of 10 typical construction projects it takes longer than 1 week to create a bill of quantities - with three quarters taking between 1 and 4 weeks.

Cost Estimation: How Long Does It Take?

25% say it takes less than a week to prepare cost estimates.
46% say it takes 1-2 weeks.
25% say it take 3-4 weeks.
4% say it takes 5 weeks or longer.

Tenders per Year

30% of companies say they participate in 1-4 tenders per year.
36% say they participate in 5-9.
20% say 10-19.
14% of them participate in 20 or more.

59% of construction companies say they use software for running tenders.

When it comes to tender contracting options, 26% say they use design-bid-build, 24% say design-build, and 49% say construction management.

Tender Contracting

59% of construction companies say they use software for running tenders.

When it comes to tender contracting options

26% say they use design-bid-build
24% say they use design-build
49% say construction management

Bid Preparation: How Long Does It Take?

30% of construction companies say it takes them less than 4 weeks to prepare a bid.
45% say it takes 4-6 weeks.
20% say it takes 7-8 weeks.
3% say it takes 9-10 weeks.
2% say it takes 11-12 weeks.

For 7 out of 10 typical construction projects, bid preparation takes longer than 4 weeks. This illustrates the extent to which construction companies become immersed in the heavy lifting of bid preparation, making it difficult for them to adjust and refine models, timelines, cost estimates and quantities.

The Cost of Preparing Bids

When asked about the typical cost of preparing a bid:

43% of construction companies said the cost would be less than $50.000
37% said it would be between $50,000 and $99,999.
16% said it would be between $100,000 and $499,999.
3% said it would cost $500,000 or more.

Tendering: How Many Parties Involved?

When asked how many contractors participate in a tender, over 83% said it would be 19 or less.

24% said 1-4.
36% said 5-9.
22% said 10-19.
8% said 20-29.

6% said 30-39.
2% said 40-49.
2% said 50 or more.

The Challenges of Tendering

We asked what were the main challenges faced when running a tender, and allowed respondents to select up to three answers.

22% - comparing/assessing bids
21% - selecting subcontractors
20% - risk assessment
18% - preparing tender documentation
17% - managing information flow

The Challenges of Participating in a Tender

What are the main challenges faced by construction companies when participating in a tender?

19% said they struggled due to insufficient time.
18% cited incomplete information.
For 15% it was assessing risks.
13% said they faced undesirable budget terms.

13% cited undesirable timing terms.
11% said they struggled with assessing commercial viability.
11% cited lack of resources.

Contractor / Subcontractor Selection

We wanted to find out how contractors and subcontractors are most commonly selected.

52% of companies say they have a pre-approved list to work from.
24% say they use framework agreements.
23% have pre-qualification procedures.
1% rely on either client recommendation or experience working with certain subcontractors.

The Value of BIM Models

When asked how BIM models help with the tendering process...

42% said BIM models simplify the process.
37% said the ease of processing documentation.
21% said it speeds up the process.

Construction Challenges

Over half of construction project stakeholders say time constraints are the greatest challenge they face in completing their work each day.

12% cite lack of proper applications.
12% say lack of necessary software.
11% say lack of proper tools is their biggest challenge.
10% cite staffing issues.
3% believe they don’t get enough management support.

THE STATE OF CONSTRUCTION BIDDING, TENDERING AND PRICING REPORT (2018)

Download eBook

What You Get

The State of Construction Bidding, Tendering and Pricing Report 2018

Number of Projects per Year

What Sort of Projects?

Scheduling Software

The Use of BIM Software