QSs must reform tender process

Keith Pearce, senior consultant at JR Knowles, called for design teams to provide more detailed information at the tender stage.

“Quite frequently tender prices are based on sparse or incomplete information usually provided before the detailed design has been finalised,” he said. This, in turn, leads to disputes, contractors and clients losing money and projects running over budgets and deadlines.

He said the problem stemmed from the simplification of measurement under SMM7, the standard used in most construction contracts. Under the new standard most of the old ‘labour’ items are now ‘deemed to be included’. As a result, “at tender stage the contractor or sub-contractor may be unaware of the true extent of these labour items”.

Pearce gave the example of a project involving sheet finishes. “To be able to price this work correctly the contractor would need detailed layout and elevation drawings for each room that has this sheet finish. Such information is rarely provided at tender stage. In such cases is the contractor entitled to be paid extra for this work?”

The RICS is currently leading a campaign to revamp the SMM7, but Pearce said the solution to the problem lay with QSs and PMs.

He said they must cajole clients and architects into providing more details at the tender stage. “People submitting tenders do not realise the potential ramifications,” he added.