Estimates given and tenders received: a comparison

Selection of the contractor and the tendering method constitute vital steps in the project procurement process. When budget approvals are based upon professional estimates, an excessive discrepancy between estimate and tender may lead to disruption of construction and budget programmes. This paper examines factors that influence the success of the tendering process within the constraints of a budgetary approval system. Three factors were found to be important in influencing the re-submit rate; namely the number of tenders, whether or not there was a Bill of Quantities, and whether the project value was less or greater than $A50 000. The procedure used for analysis was logistic regression applied to grouped and ungrouped data.