If clients paid bid costs...

Either clients should pay bid costs or the industry should publicise the tender costs of all bidders, both winners and losers, according to Kevin Taplin, senior consultant at housing consultancy Trimmer CS.

Taplin argues in QS News this week that a large amount of money is being wasted on the bidding and pre-qualification process.

He said the CIOB Pre-Construction Society estimates that a company spends 1.5-2% of its turnover of preparing bids and pre-qualifications. “That doesn’t sound much, but if a client was asked to add 2% to a £200m regeneration project to pay for the bids I doubt they would be keen,” Taplin said.

He said these costs are inevitably passed on to clients, as contractors and developers seek to recover them through the fees they charge for the jobs they do manage to win.

“Would it be different if a client paid bid costs? I suspect so,” Taplin argued.

“I am convinced we would see shorter tender lists and more focused pre-qualification.”

Alternatively, he said, if all bidders showed their bid costs, “that would “open a few eyes”.