Construction tendering, explained.
Clear, practical definitions for every term you'll encounter in construction tendering, written for the people who actually do the work.
Tendering Process
A Request for Quotation (RFQ) is a formal document issued by a general contractor or client inviting...
A Request for Proposal (RFP) is a document used to solicit detailed proposals from potential vendors...
A single-stage tender is a procurement process where all tenderers are invited to submit a full pric...
A two-stage tender is a procurement process where the first stage selects a preferred contractor bas...
The tender period is the time allowed between the issue of tender documents to subcontractors and th...
A tender return is the completed quotation submitted by a subcontractor or supplier in response to a...
Tender adjudication is the process by which received tender returns are reviewed, compared, and eval...
An addendum is a formal document issued to all tenderers during the tender period to clarify, correc...
A tender list is the shortlist of subcontractors or suppliers invited to submit a price for a specif...
A tender programme is a high-level construction programme submitted as part of a tender, indicating ...
Contracts
A lump sum contract (also called a fixed price contract) is one where the contractor agrees to compl...
A cost-plus contract (also called a prime cost contract or cost-reimbursable contract) is one where ...
A measured contract (also called a re-measurement or measure and value contract) is a construction c...
Design and build is a project delivery method in which the main contractor takes responsibility for ...
A variation order (also called a change order or instruction) is a formal instruction from the clien...
An extension of time (EOT) is a contractual entitlement to extend the completion date when the contr...
Liquidated damages (LDs) are a pre-agreed sum specified in the contract that the contractor must pay...
Documents
A Bill of Quantities (BOQ) is a document prepared by a quantity surveyor that lists, in detail, the ...
A Scope of Work is a document that defines and describes the work to be performed under a contract o...
Preliminaries, commonly called "prelims" in the UK construction industry, refers to the general, non...
A prime cost sum (PC sum) is a sum of money included in a contract or bill of quantities to cover th...
A provisional sum is an allowance included in a construction contract for work that cannot be fully ...
A trade package is a defined scope of work representing a single trade or closely related group of t...
The Construction (Design and Management) Regulations 2015 (CDM 2015) are the primary UK regulations ...
Subcontractors & Supply Chain
A subcontractor is a specialist trade contractor engaged by a general contractor (or main contractor...
A nominated subcontractor is a subcontractor selected by the client or their consultant (rather than...
A subcontractor appraisal (or post-project review) is a formal assessment of a subcontractor's perfo...
Pre-qualification is the process by which a general contractor or client assesses potential subcontr...
In construction, the supply chain refers to the full network of subcontractors, specialist contracto...
Financial & Commercial
Retention (or retainage) is a percentage of the contract sum withheld by the employer or main contra...
A bid bond is a type of surety bond provided by a bidding contractor as part of their tender submiss...
A performance bond is a surety bond that guarantees the satisfactory completion of a construction co...
A retention bond is an alternative to cash retention, where the contractor provides a bond (from a b...
Dayworks is a method of valuing construction work where the contractor is paid for actual labour, ma...
A cash flow forecast for a construction project projects the monthly flow of income (interim payment...
An interim valuation (or interim payment application) is a periodic assessment of the value of work ...
The final account is the agreed financial settlement of all sums due between the contractor and empl...
A payment notice (or pay less notice) is a formal notice under the Housing Grants, Construction and ...
Project Milestones
Practical completion (PC) is the stage at which a construction project is certified as complete in a...
The defects liability period (DLP) is the period following practical completion during which the con...
Novation in construction is the process by which a design consultant's appointment is transferred fr...
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