The construction tendering process in Australia can vary depending on the project, but for the most part, it is similar across the board. 

What is a tender you ask?

Tenders are a formal process for businesses, both head contractor, subcontractors and more, to submit responses to a request for work. This can be construction related (which is why we’re here) all the way through to corporate contracts.

Check out our other insights articles for more more in depth advice on:

•  How to prepare a quote for construction work, and
•  How to bid for construction tenders 

The Construction Tender Process

The tender process itself is never easy. There are a number of important steps to go through, and the timeline can be long. You also don’t get paid for the quote and tendering process, but that’s okay, it can be well worth it in the end.

The process for head contractors and subcontractors is basically the same, it’s just between different parties.

From the head contractors perspective, the tendering process can be broken into three important periods:

Tender Preparation

During construction tender preparation, the project is defined and scoped, documentation is prepared and the selection process is begun.

Tender Period

 During the tender period, the contractor will call for tenders, this is the most important period for subcontractors, which we will focus on in this article.

Tender Evaluation

 After receiving the tenders, they will be analyzed,clarified, and eventually selected/awarded

Within those periods, we’ll break down the timeline specifics you need to know as a subbie.

Step 1 – Head contractors are invited to tender

The very first step of the tendering process involves an invitation to tender, usually between the client and the head contractor. They will get all the documentation that outlines what they need to respond to.

This process typically follows after the completion of a pre-qualification questionnaire and sometimes a pre-tender interview. 

These steps (yes, steps within a step – tendering isn’t quick) help the client create a shortlist of potential contractors that would be suitable for the project. 

Invitation to tender can include different parts such as:

• Letter of invitation to tender
• Form of the tender
• Any preliminaries relevant to subbies
• Form of the contract itself, contract conditions any any amendments
• Tender pricing documents
• Drawing schedules
• Design drawings 
• Specifications

The head contractor will usually break down tender documents into different packages (still with only one main contract) so that they then can be passed onto the suitable subbies responsible for each part of the project.

Step 2 – Request for quotation (RFQ)

Once the head contractor has all their ducks in a row, this is where you’ll start to get involved as a subbie. 

Head contractors will split all the documentation into trade packages and use notice boards like ours to send out invitations to subbies. 

Some head contractors might also put together a bill of quantities (BOQ), which will outline what’s needed and how much.

If you receive this, quote directly against this.

Step 3 – Clarification

This step is where any and all questions are asked by all parties. This is a great way for the head contractor and the subcontractors to foresee any potential problems or opportunities in executing the project.

During this phase, there also may be changes made to architectural drawings due to errors or pitfalls pointed out by the quoting subbies who know their trade inside out.

These usually result in an amendment of the tender documentation and can also result in an extension of the quoting period at times. It’s likely during this process you receive multiple notices of addenda. 

Any amendments will need to be circulated to all parties involved so that everyone is on the same page. Don’t worry though, each conversation is confidential; they won’t be giving away any of your unique proposals or advantages to other potential subbies.

Step 4 – Submission

This step seems pretty obvious by the heading right? This is the part where you submit your quote. Usually the builder will be looking for 3-5 quotes per trade package.

The head contractor will set the date for all subbies to submit and you’ll need to meet it.

If there’s one thing we recommend you focus on quite a bit, it’s your pricing – this is where you’ll have the most competitive advantage.

However, there is of course all different parts that you will be assessed on. 

Things you can include in your response:

• Business details
• Schedule of rates
• Demonstration of capabilities
• Timelines 
• Resources and materials
• Prior experience as a business
• Terms and conditions
• All tenders and quotes are different so this is by no means an extensive list. We do recommend you check out our guide to bidding for construction tenders so that you can work towards your best tender response possible.

Step 5 – Head contractor submits

You guessed it. This is when the head contractor collates all the information and subcontractor quotes and submits to the client. 

Sometimes they may come back to certain trades if they don’t feel like they have covered the trade enough. They will then quote to the client based on what they’ve learned from the various trade quotes along the way. Typically a builder will look for between 3-5 quotes to ensure they’ve got a good idea of how much each package will cost.

Step 6 – Qualification and settlement

As we get towards the end, the process doesn’t become shorter itself but the explanations do because most of the hard yards have been covered.

At this point, we reach the point where the client will assess the tender responses, weigh up pros and cons, and as always, compare costs. 

This is where they will ultimately assess and select the winning head contractor. From there, any negotiations and contracting will occur.

Step 7 – Subbie engagement

Last but not least, this is where the estimating team within the head contractors business will handover to the delivery team. 

The delivery team (including the contract administrators) will look at quotes provided by subbies and their personal contractors and will pick the right subbie for the job. 

At this point, it’s not unheard of that a head contractor may ask you to ‘sharpen your pencil’ (aka lower your price). 

If you’ve reached this point in the timeline it’s fair to say you’re competitive in market but there’s always room for improvement!

Quick tips for Request For Quotation (RFQs)

The lengthy process that is the tendering and quoting process is also heavily reliant on your response. Your quote is everything and you need to put your best foot forward in all possible ways. 

We could go on forever about how to master the tender response process (which we do, in our guide to bidding for construction tenders).

Don’t forget to also check out our subbies section to keep up to date with live tenders now. 

You can also upgrade and get access to awarded contract information so you can track projects all the way through after they are won by a head contractor. This way you can reach out when your trade is likely to be needed.

If you’re here, it probably means you’re fairly aware of what a tender is, how the process works and how to create your best tender response. 

But what happens after the contract is awarded? As a subbie, you’re going to want to keep an eye on the project you have tendered for across its lifetime (from tender to awarded contract).

At the end of the day, you want to be talking to the head contractor that is in charge of the build, which is where Estimate One is here to help.

What is awarded contract information?

The contract for a construction project will be awarded just a few short weeks after a tender closes. Everything after this can remain a mystery for some. 

At EstimateOne, we give subbies who subscribe to our upgraded options the ability to follow a tender past the awarded phase through our awarded contract information notices.

Why is awarded contract information important to me?

Usually during the final stages of a tender, head contractors will have a team who will package out different trades to look to get roughly 3-5 quotes for each trade. 

Head contractors will use these prices to put together their quote to the client – however, at this point no subbies have been given the job yet. 

Once a project contract is awarded, the head contractor’s estimating team will hand over the project to the contract administrators who will pick from the subbies who tendered for the job.

Your focus here needs to be knocking their socks off with a great quote at tender time with great pricing (competitive pricing – but don’t undersell yourself). Estimators will recommend subbies to the contract administrators, but you’re going to want to follow up with them once the tender is awarded.

Even if they don’t put out a request for quote, if you keep an eye on the project closely, you can reach out to the builder directly and try to get in front of them for consideration. 

If you sign up to EstimateOne you’ll also get alerts (contract notices) when a project is awarded to a builder (less checking in constantly – you have better things to do) plus all the key contacts you could need for head builders. We’re here to help everyone and that includes our subbies in the construction industry!

Sometimes head contractors don’t even consider subbies until they need them 12-24 months down the track, particularly finishing trades like plastering and painting. 

Our Awarded Contract Information system can let you filter contracts that have closed in a certain period of time so that they are more relevant to you for your trade. 

Pro tips:

• Get your foot in early! It is favourable if you pop up during the tender phase because it shows you’re keen to work with them. 
• Quote your best but don’t undersell yourself.
• Keep a regular eye on our Awarded Contracts hub for all the opportunities suited to you.

As a subcontractor, you obviously work for yourself (the ultimate dream). There are, however, pros and cons to working for yourself, but mostly pros, if you set yourself up right.

The pros of being a subbie are the obvious things:

• working for yourself
• you make the decisions
• charge your own rates (while still being realistic)
• you don’t have to report to anyone

You just need to know how to find construction work to really make it worth it.   

When it comes to the cons (if you really want to call them that) is that you don’t accumulate paid leave and you have to manage your own tax, super and accounts. You also don’t get paid to quote jobs so there’s a lot of leg work involved. But being your own boss and setting your own rates, that heavily outweighs this right?

The key to being a successful contractor is to build a great reputation and a big network to back you. Your main focus is to learn how to find subcontracting jobs to keep the workflow happening.

Your network shouldn’t just be limited to other subcontractors but head contractors, sometimes client direct and basically anyone with extended connections to help you out. 

Don’t stress though, we’ve got a few tips for subcontractors when it comes to finding construction jobs.

Where do I find subcontracting jobs?

Check out notice boards

Your first go-to will always be the notice boards. As you’d already know (because you’re on our website), that’s one of our core purposes, to provide you with endless jobs to look through. 

If you check out our tender notice board you’ll see you can search all different tenders by location and every trade specialty you could think of.  You can also set up job alerts for the right jobs to hit your inbox. 

But we’re not just here to plug our own noticeboard, we’re here to equip you with all the knowledge you need to really win those jobs and grow your business.

Notice boards are easily accessible on the internet or your subbie mates might know some good ways to find work too (we’ll talk about networking soon). 

It’s also worth jumping online to look at Facebook groups. Mostly there are groups designed to link up subbies for work when they need to fill some spots on a job but there’s always the potential to stumble across some work among the chatter so keep an eye out!

Network, network, network

As we all know, it’s not always what you know, but who you know. This couldn’t be any more true in the construction industry when it comes to finding a commercial construction job.

You should always try to strike up conversations where possible – always looking for that next job. 

Get to know everyone you can, whether they are other subbies on-site, head contractors and even sometimes you may interact with the clients who stroll through the sites. Make sure they remember you (in a good way)!

You can also directly reach out to contractors if you’re not currently on a job. If you have a profile with us, you can access our head contractor directory. From there, you can get their contact details and a list of their recent projects for reference. 

Keep in mind though, when reaching out to head contractors, remember that you are the master of your domain and have the power to provide expert advice on certain parts of a project. Use this as your ticket in to really give them a good impression of your skillset.

Industry associations

In the building industry, there are many different types of industry associations that you can join to gain many benefits. 

Industry associations provide you with specific advice around things like security of payments, contractual disputes (general advice, not legal advice) and so on. 

They can, however, also act as a connection with other subbies, whether it be through conferences or online forums. This is where your networking skills can come into play too. 

Associations like Master Builders Australia are a good starting point to check out. They represent the building and construction industry and are 32,000 members strong so you’re bound to make some connections.

A quick Google search though will give you a list of local industry associations that might be broader or more specific to your trade.

Let them come to you

While you can hunt down your own work, it’s always worth keeping in mind that you can influence how builders can naturally find your business on the internet especially. 

More often than not, contractors will vet subcontractors via good old Google. This means you need to set up a great website and practice good search engine optimisation (you might need to temporarily hire a digital marketing pro to help you out) so you can reach that first page of Google. 

You also need to make sure you have a good social media presence. Basically, use social media to communicate with everyone, with a focus on attracting new customers or contractors with work. 

Checking all of these channels is something contractors do regularly so it’s important to have a strong, professional presence. Just make sure you also have contact details easily available on your website and social media pages.

No matter what, you can always come back and check out our subbies notice board. We have jobs of all sizes, across all trades so you’re sure to find a tender that would be suited to you.

Don’t worry though, we can also help out with preparing responses for the construction tenders you want.

Whether it be a commercial business park, residential estate or city high-rise, there are a pretty standard set of stakeholders in construction projects, all with their own responsibilities. 

Sometimes it’s hard to tell what those responsibilities are, especially when it comes to head contractors vs subcontractors.

At the very head of a commercial construction project though, is the client. Clients can come from any background from property development to corporate business. 

Depending on the project, they might put out a tender where they may be seeking one head contractor to take on the job to then outsource to subcontractors (the guys who do all the work).

The client will also typically allocate someone on their side to manage the project as a whole and liaise with the head contractor to make sure everything runs smoothly.  

Each stakeholder in a commercial construction project has its own roles and responsibilities. If you’re a subcontractor looking to transition from private residential jobs to the big league in commercial construction, you’ll need to know who does what. 

Client side project manager

Of course, at the very centre of the project is the client. On that side of the fence, you’ll have your client side project manager.

A client side project manager is chosen by the client and is the sole point of contact (to the client) for the head contractor on a construction project. Both the client side manager and the head contractor will liaise regularly to make sure all elements of the project are done right and on time. Their job is to make sure that everything is done in the client’s best interest.

More often than not, these guys are ex-head contractors so they know what they’re doing and what to expect. This person is responsible for tasks such as:

• setting project goals and objectives (and make sure they’re being met)
• preparing project schedules
• control of project delivery, close and handover
• liaising with all internal and external construction stakeholders 

Having a client side project manager makes it much easier to have one source of truth. The more people with their hands in the pie on the client’s side, the more confusion for the head contractor and the subbies below them.

This person is in charge of steering the ship so to speak.

Head contractors

Head contractors otherwise known as the head builder, are the on-site head honchos. Usually, the head contractor has been chosen as the construction contractor after a tender process. 

More often than not, it will be a commercial builder with a fair amount of projects under their belt.

After winning a tender, the head contractor is then responsible for sourcing all the subcontractors. The subcontractors then will often source suppliers to fulfil the work requirements. 

During the project, head contractors are responsible for all the work that isn’t part of the actual building itself, such as:

• procurement of subcontractors
• payment of subcontractors
• daily liaison with subcontractors 
• conduct safety inductions
• oversee all the work that is done
• compliance and OH&S
• site surveying and engineering
• waste management
• provision of on-site services such as security, toilets etc.
• If it’s a union site, ensure the terms of the EBA are met 

Head contractors are responsible for making sure everything is done right, safely and to the client’s satisfaction. 

Most head contractors who win the big jobs have done it many times before, so they will have pretty tight processes and knowledge of the ins and outs of a commercial construction project.

Subcontractors

Last but not least, subcontractors. Subbies might be lower on the food chain when it comes to a big construction project, but we all know who does all the hard labour right?

A lot of subcontractors start off in smaller private projects. Depending on your taste for success or money, it’s always worth dabbling in commercial projects that come about through tenders. 

Typically the head contractor will outsource a lot, if not all of the trades (subbies know their stuff better than anyone). 

These projects could be a new high-rise in the city or a brand new estate of residential townhouses. You’ve got plenty of options. It’s worth keeping an eye out on the construction tenders we have available for you to quote on. 

Sometimes you might also be asked to provide a quote for a project. If you’re unsure what is required for this, don’t worry, we can help equip you with the skills to prepare a quote for your next construction project.

The nominated subcontractors on a commercial construction process may have gone through a tender process themselves and cover everything from plumbing to security and communication systems.

As a subbie, you’ll need to:

• Source suppliers
• manage your own team
• work without supervision
• undertake OH&S and other inductions
• comply with all processes and procedures in place

The head contractor heads the project and wil guide everyone in the right direction, but overall, you’re the master of your trade.

There are endless opportunities for a subcontractor to get their hands on a bigger job. It’s really just about getting yourself out there and in front of the head contractors more often.

Have a look at our article on improving your chances of winning a tender to make sure you put your best foot forward for the next tender.

It’s safe to say, paperwork is not the most thrilling part of any profession. Let’s be honest, writing quotes for tendering builders isn’t something you’d write home about.

You’re probably thinking though, what exactly is a tender and what do I need to do? Don’t stress, we have the answers.

What is a tender?

A tender is a formal opportunity for businesses or suppliers to submit a written offer (tender response), including costs, timelines and more, to complete work set out by a client. The work can be for anything from a large scale construction project to provision of marketing services for a corporate brand. 

The most common tenders you will see will be construction tenders and commercial construction tenders. As no two jobs are the same, you can’t simply just copy and paste the same price from the last job. The thousands of moving parts in a construction project needs serious attention at every angle. 

Tender responses include the who, what, when, how and everything else in between. Meaning, yes, they do require a bit of extra work (that, unfortunately, isn’t paid), but it can be worth it in the end for that big payday.

Tender terminology

You’ll probably regularly see different terms are thrown around when it comes to tenders. 

Terms such as:

• Request for Tender (RFT)
• Request for Quote (RFQ)
• Request for Proposals (RFP) 
• Invitation to Offer (ITO)
• Approach to Market (ATM)
• Invitation to Respond (ITR)

All of these are similar in nature but for the most part, you’d be more likely to receive a Request for Tender or Request for Quote. 

For a more comprehensive breakdown of construction tendering terminology, check out our construction terms 101 article

The tendering process

You might get an expression of interest (EOI) request before you receive an RFT or RFQ. An EOI is typically the first step in a multi-phase tender process, where you will be requested to express interest in a job set out by a client. 

Your response to an EOI can be similar to a tender response, but you’re not required to provide any costings at this point. The client also won’t be selecting the business to do the job at this point. 

Think of it as an audition process to show your businesses interest and capabilities to move to the next round.

For a comprehensive guide check out our article on how to bid for construction tenders.

Writing a winning tender response

When a client puts out a request for tender, they will provide the requirements of each supplier’s response (or at least as many requirements as they can).

Construction businesses are usually pretty good at providing you with all the information you need for tenders. Sometimes you won’t get much information from other clients though, so you’ll need to provide what you can, based on what they’ve given you. 

 At a minimum, your tender response would need to include:

• Company background 
• Company capabilities – why you?
• Clear, no fluff answers to any questions
• Schedule of rates
• Timelines
• Terms and conditions 

Sometimes it also helps to show the team that would be working on it and their experience as well. A lot of businesses these days like to know the professionals behind the job before they make a decision.

Everyone who responds to a tender will be marked against the same criteria. This is why you have to make your answers count. As always, practice makes perfect.

Once a supplier has been formally accepted with their – let’s call it – winning response, a contract is created. It’s not always a quick and easy process to put together a tender response but we’ve got all the tools (and tips) to help you write your best submission for the tenders you want.

Different types of tenders 

There are different types of competitive tenders used across the globe, but the most common types of tenders in Australia are open, negotiated, selective, single-stage and multi-phase tenders.

Open tenders

Open tenders allow anyone to submit their response no matter how big or small, or new they are. It’s a great opportunity for emerging businesses to get their name out there.

Open tenders are the most common type of tenders for the construction and engineering industries. You’ll also see these a lot with government tenders, as they are legally required to go out to everyone.

Given the tender is open to everyone, this tender process is by far the most competitive, meaning you have to have all your ducks in a row to be in the running.

Negotiated tender

Negotiated tenders occur when a client approaches a single supplier. The client would select this supplier based on previous relationships or their track-record with them. It usually helps them reduce costs too. 

This type of tender is quite handy for highly specialised projects or for extending an existing contract with that supplier (do your best and you’ll always get rewarded). Therefore, the negotiation process becomes much easier.

Most public-funded contracts will not use negotiated tendering due to the potential of ‘comfortable’ relationships that can develop, which can exclude other equally qualified suppliers in the process. That means, your connections probably won’t be able to help you get on a government tender panel, but we can.

Selective tender

In a selective tender, the client will send out a request for tender to multiple suppliers that they feel are suitable for the project.A selective tender is similar to a single-stage tender. This could be their top five favourite construction businesses for a specialist or complex contract.

The only downfall to this type of tender is that smaller businesses are usually forgotten and not included in the process. But don’t worry, there’s still plenty of work out there for you if you’re a smaller business.

Single-stage tender

A single stage tender is usually called on when there is enough information available to them to calculate a realistic price before the process begins. The more traditional route taken by clients is the single-stage tender process.

An invitation to tender is then sent out to prospective suppliers, sometimes after pre-qualification work is done. From there, suppliers can submit their tender response for review and so begins the battle to win the job. 

Two-stage tender

Two-stage tenders, sometimes called multi-phase tenders, are when there is the early appointment of a business to a project before there is enough information for them to fully quote the job.

In Australia, this can also be referred to as early contractor involvement (ECI). It’s typically used by clients who might not have fully fleshed out their plan yet. 

For example, to save costs and get it right the first time, a developer may get a construction contractor in early to work with the architects to design the project within budget. Having all parties involved from the get-go means they reduce costs and time in the long run.

After early involvement, once you have everything you need, you’re in a position to offer them a fixed price for the remainder of the project.

There’s a lot of information you need to know for tenders. We know it can be a bit overwhelming, especially if it’s your first time, but that’s why we’re here to give you expert advice and access to all the jobs you could imagine. 

If you’re a subbie looking for tenders or resources to help you write your tender responses, we’ve got you. Check out our insights page for some tips and tricks of the trade.

Commercial construction can be a funny old world. From BOQ to RFQ, there are so many niche terms and acronyms sometimes it sounds like a completely different language. We’ve pulled together a quick glossary so when it comes to getting on site you can both walk the walk, and talk the talk.

Who’s who on the job?

Client: This is the person or organisation who’s commissioning and paying for the building work. They are the key decision maker on any construction project.

Client side project manager: This is the representative of the client – their job is to make sure everything is built aligned to the clients needs (aka, done right and done on budget).

Head contractor: The head contractor – often referred to as the builder – is the company put in charge of the building project. They talk to the client and procure a series of subcontractors to ensure the project is built. 

Subcontractor: Affectionately referred to as a ‘subbie’, a subcontractor is a person or organisation contracted under the builder (head contractor) to perform a specific scope of works. 

When it comes to the docs:

RFQ: Request for quotation – These are the invitations head contractors send to subbies and suppliers asking them to price a project.

BOQ: Bill of quantities. Bill of quantities – an itemised list of the products to be supplied in the project.

EOI: Expression of interest – This is when a subcontractor expresses interest in supplying a quote for a project.

SOW: Scope of works – this is a list of all the requirements for a subcontractor to complete on the job. 

RFI: Request for information – An RFI is a formalised (i.e. in writing) communication between two parties when clarification around a particular piece of information is needed.

Drawing Register: A record of all drawings and schedules with their respective revisions. To an Estimator, it’s a spreadsheet used in the process of allocating drawings, specifications and other tender docs to specific trade packages.

Document Register: A list of documents given to a subcontractor. Used to make sure that the subcontractors quote has been sent in using the latest docs. 

Tender time:

Tender: A bid or offer to provide goods/or services for a stated fixed amount of money. A builder will submit a tender to the client basing their price off a series of subcontractor quotes. 

Estimator: A person responsible for constructing a price for a specific scope (or scopes) of work. The estimator for a builder will compile subcontractor quotes in order to put together an accurate and educated price to the client. 

Trade coverage: Also referred to as coverage, this refers to the amount of quotes a builder has received for each trade package. In order to put in an accurate and educated quote, builders require multiple quotes for each trade package. 

 Addendum: During a project’s life the drawings will need to be updated to reflect changes being made. An addendum is the process in which these documents are updated. 

Now you should be ready to get on site. If you’re looking to find more jobs in your area, find out how we could help with that here.

Are you asking the right questions?

It probably goes without saying that when you’re quoting a job to a builder, the most important work is done over the phone. After all, it’s an industry built on relationships — and not many people build a relationship over a few emails.

We’ve had a chat to a couple of people who have experience taking plenty of these calls during their work as Estimators. Both of them had a similar take — they both loved to hear the ‘right’ questions.

We were all told back in school that there is no such thing as a stupid question.

While there are no stupid questions, being able to ask great questions can be just as important as knowing the answers.

Those who have worked in the commercial construction business for a while know the importance of having a conversation. Whether it is to introduce yourself or get some clarification on some of the documentation — having a chat is always the best way to get your answer.

Even if you‘re worried about annoying them, it’s always better to be the person who called too much than the unknown random who threw in a quote.

When you’re on these calls with a head contractor — it can be a bit like a quasi-job interview. Think about the difference between these two questions, and the question you’d rather hear if you were an Estimator;

“How do you want me to quote this package?”

“How can we win this job?”

Even if the first question is asked with the best intentions, it can come across like you are asking them how to do your job — and you already know how to do that.

Speaking to Jeremy Barrow — Estimating manager at ABD Group — the best questions he gets from subbies are the ones that teach him something. The estimators on the other end of the line aren’t just working out how to get the best price possible — they also need to work out how they can build the thing.

As an expert in your trade — there’s no real point ringing up asking how they would like it quoted or what they want included, leave the exclusions to your written quote.

Our own Tony Dymock has had plenty of experience taking these calls during his past life as an Estimator. For him, it was all about showing some enthusiastic know-how. Simply put, give solutions, not problems.

Think something like;

“I wasn’t able to price the specified product, but I’ve used a comparable alternative. Would you like to see a sample first?”

This question demonstrates to the builder that you’re here to help with problems, and also that you’re able to help them out reducing costs.

When you get to the bottom of it all, the only question you really want answered is “when can I start?” The best way to get a start on the site, is to show the head contractors you know what you’re talking about.

Take the chance to impart a bit of knowledge, show you’re keen for the job and most importantly — demonstrate that you really know your stuff.

What is BIM?

Broadly speaking, ‘BIM’ (Building Information Modeling) encompasses a shift from documenting buildings and structures in 2D format as plans, sections and elevations, to documenting buildings in 3D format as physical forms, volumes and materials.

BIM has been a topic of hot conversation for some years now, but its adoption in Australia’s construction industry has been tepid. Broadly speaking, ‘BIM’ encompasses a shift from documenting buildings and structures in 2D format as plans, sections and elevations, to documenting buildings in 3D format as physical forms, volumes and materials. It promises a shiny, bright future — a single source of truth during design and construction, and even post-occupation. So why wouldn’t an industry with so much to gain be running towards this with gusto?

 Who is using BIM in Australia?

As far a players in construction tech go, you don’t get much bigger than Autodesk. We tagged along to their Connect & Construct Summit last week to see where BIM — and other tech advancements in the industry are heading. We saw some pretty amazing stuff. What we didn’t see however, is many of the big new advances being widely adopted. Why is this? Is there some kind of industry-wide resistance or is something else going on?

The resounding takeaway from the sessions is that the technology is ready — it’s us mere mortals holding back.

How can BIM be used?

Part of the challenge in adopting something as big as BIM is that it’s difficult to dabble in. It really needs wholesale, company-wide adoption to get the most out of it — and that’s a bit scary. It can feel like letting go of everything familiar, and often all at once. With the relentless pace of the construction industry, that’s pretty daunting- there’s no chance for it to pause, adopt and improve.

Certainly for large industry players, this is most true. And it is not for lack of trying. It’s increasingly common for large general contracting businesses to be putting concerted efforts into the technology systems as a source of competitive advantage. Hansen Yunken’s HYWAY initiative is a great example of this, there are many more.

Investing in construction technology

But maybe BIM isn’t the best place to start, it’s certainly not the only place to start. At the Connect & Construct Summit, we heard that in the last 12 months alone, there’s been over $1b in capital invested in construction technology startups, globally. Beyond BIM, we’re spoilt for choice. But looking at ‘technology’ can a bit like drinking from the fire hydrant — it’s too much all at once. The path of least resistance lies in not looking at the technology at all — or at least not as the starting point.

The key will be starting small, and starting with a business problem. Rather than being overwhelmed by the ‘big’ wins, have a crack at the ‘quick’ wins.

Going paperless with BIM

Matthew Bien-Izowski (Managing Director, BN Electrical Contractors) talked through his success with such a quick win. In 2018, they set a goal to be paperless everywhere by 2019. Ambitious, and yet tangible. Far from saving trees, it seems this was about wanting to have the most current information for everyone, all the time, everywhere.

While eliminating paper doesn’t sound groundbreaking, it is measurable, trackable and valuable. With their goal in mind, BN Electrical looked to what technology would get them there. They realised that their $20k annual spend on printing could be better spent on 40 iPads. They found a tech tool that suited, and got to it. Fast. And they reaped rewards equally quickly, quoting a 12% cost reduction and zero rework on a recent Melbourne-based project.

And perhaps herein lies the solution to these tech adoption challenges — the frontrunners will be those that can find the quick wins. Shifting from a 5 year horizon, what can get done in 12 months? Or even 3 months? Rather than the big industry players going first, perhaps smaller businesses are better placed to lead the way, able to adopt new ways of working in one sweep. That’s a pretty liberating concept.

What will make a difference to your business?

What will make a difference to your business? It might be reducing paper, but it may equally be about reducing the number of internal emails. Or reducing the amount of re-work based on working from outdated documentation on site. Perhaps it’s safety related, or even invoicing. No problem is too small to start, but knowing what you’re trying to improve means you’re in the driver’s seat. You’re the one putting the tech to work, rather than trying to figure out how the tech works.

The game is changing, and BIM is definitely part of this world, but to get there we probably need a bit of a rolling start. And it seems the best way to do that is to actually look away from the light, rather than stare into the sun.

You’re on the EstimateOne portal. You’ve found a project you want to work on for a Builder with a solid pipeline of projects. Now how do you get your foot in the door?

Tendering is a competitive and time constraining process for Builders and trades alike. If your quote is going to take the Estimator too long to understand, your hard work goes in the “too hard” basket. The chance of working with them will decrease significantly.

How do I know this? I was an Estimator for many years. Trust me. This guide will help you tailor your quotes to increase your chances of winning new projects. The attached PDF is a sample quote to provide a real example.

Your price

Total price

Front and centre. An Estimator needs to know your final figure. Whether you’re toe-to-toe with the other trades or lurking in the shadows, an Estimator first checks your price. This needs to take pride of place.

Itemised bill of quantities (or scope of works)

For a second, put yourself in the Estimator’s chair. A Subbie quote arrives cheaper than the others, but it’s a one-liner with no description. She has 30 trades to review, each with five subcontractors. And the tender closes in 2 days. She is stressed, panicked, and doesn’t have the time to double check all quotes. This one goes by the wayside.

To get the Estimators attention, you should include a description of works and bill of quantities which quickly shows what your quote includes. No more confusion!

An Estimators example

• John’s Timber Floors priced the supply and install of engineered floorboard for four townhouses. John’s quote is the most expensive of the four the Builder received.
• However, his quote includes the brand of floorboards and install allowance as two separate line items. Unbeknownst to John, the other Subbies have priced an alternative non-conforming timber.
• Once the Builder swaps John’s supply with their own, you’re now the most competitive. John’s Timber Floors has now caught the Estimators attention!

Your understanding of the project

Clarifications & exclusions (also known as “the things I didn’t price”)

So we have your final price and your scope of works. Now you need to list any items that you haven’t made an allowance for.

This section doesn’t need to be a 20-page document detailing the type of nail you’re going to use to fix architraves to the frame. It should be a short list of any variations to the documents provided. A good set of clarifications allows an Estimator to see what sort of costs they need to add or subtract from you.

Below are some examples of good and bad clarifications.

• Concrete Structure [Good]: Allowance for charcoal concrete to driveway in lieu of exposed aggregate
• Concrete Structure [Bad]: Allowance for concrete to driveway
• Steel structure [Good]: Allowance to install steel, assume craneage by Builder
• Steel structure [Bad]: No allowance for placement
• Carpentry [Good]: Allowance for 62mm MDF skirting in lieu of 100mm specified
• Carpentry [Bad]: Allowance for skirting
• Electrical Services [Good]: Allowance for equivalent alternative lighting, subject to Builder approval (value $10,000)
• Electrical Services [Bad]: Allowance for alternative lighting
• Carpet [Good]: Allowance for alternative wool blend carpet, equivalent colour, subject to Builder approval
• Carpet [Bad]: Allowance for alternative carpet
• Timber Flooring [Good]: Allowance for equivalent 190x19mm timber board, floating install in lieu of direct stuck.
• Timber Flooring [Bad]: Allowance for alternative timber

Seems simple enough. Still, it’s a common pitfall many subcontractors face as they also run out of time to price a tender. Spending the extra 10 minutes to CLARIFY what you have or have not allowed could save an hour of emails and calls trying to figure it out.

And there is always one bug that pops its head out. What if the architectural drawings say one thing, and the specifications say another?

In general, it’s safe to assume that the specs are a copy-paste, and the drawings are completed later and take precedence. It is always wise to leave a clarification to that effect. Eg; “Assume architectural drawings take precedence over specifications” or vice versa!

Methodology

In most cases, your clarifications and exclusions will be enough to cover you. For structural trades such as concrete, steel, scaffolding, and craneage, including a brief methodology shows the Builder that you understand the project and are in line with their expectations.

An Estimators example

• Tate is preparing his methodology for his tender submission. Some trades have not received the scope of works documents, and the quotes are now rolling in.
• In Tate’s methodology, he has assumed that the concreter will construct the capping beam and shotcrete retaining walls. He has instructed his piling contractors to only price the piles, not a full basement package.
• All of his concreters have included a scope of works/methodology that specifically excludes capping and shotcrete walls since he had never informed them of it!
• But since Tate is informed of this in advance, he can either ask the concreters to price it or get the piling companies to provide a full basement price.
• Without these methodologies, he could have assumed the concreters included it which would have caused a headache for everyone involved if he was successful in the tender!

A nice conclusion

Any other points or comments you think relevant to the job should be included either at the end of your quote or on the cover page.It could be anything ranging from similar projects you have worked on to show your expertise, to references from similar construction companies that will further your credibility with a new Builder.

In summary

Your quote needs three things to get an Estimators attention.

1. A cover page with your total price.
2. A scope of works/bill of quantities.
3. A methodology statement.

Include these in your quote, and see your success increase!