Overcoming Unclear Scope in Tendering: How to Avoid Risks and Secure Profitable Contracts
Overcoming unclear scope in tendering is a challenge that many contractors and subcontractors face. When project requirements are poorly defined, it can lead to cost overruns, project delays, and contractual disputes. To navigate these challenges, working with a Quantity Surveyor (QS) is invaluable. A QS helps clarify scope, communicate with clients, qualify bids, and identify exclusions—ensuring that you price projects accurately and protect your business from unforeseen risks.
The Risks of Unclear Scope in Tendering
When a project lacks a clearly defined scope, it creates uncertainty, leading to inconsistent pricing and potential disputes.
For example, a contractor bidding for a commercial fit-out might only receive basic design drawings without specifications for finishes or mechanical systems. To remain competitive, they assume mid-range materials in their pricing. However, after securing the contract, the client demands high-end finishes and additional mechanical and electrical (M&E) works, causing cost escalations and conflicts.
Similarly, a subcontractor bidding for external works may find no clear details about drainage or landscaping. Some competitors include these elements in their pricing, while others do not. This lack of clarity makes it difficult to compare bids fairly, resulting in delays and contract renegotiations.
How to Overcome Unclear Scope in Tendering with a Quantity Surveyor
Although perfect information is not always available at the tender stage, a Quantity Surveyor can help mitigate risks and improve the clarity and accuracy of your bid.
1. Request Clarifications Early with the Help of a Quantity Surveyor
Before submitting your bid, seek clarifications on ambiguous areas. A Quantity Surveyor can help:
• Identify missing details in the tender documents.
• Submit formal Requests for Information (RFIs) to obtain critical data.
• Document assumptions in your bid when clarifications are unavailable, ensuring transparency and risk mitigation.
2. Qualify Your Bid with Assumptions and Exclusions
A Quantity Surveyor ensures your bid includes well-documented assumptions and exclusions, such as:
• Specific material specifications.
• The extent of preparatory work.
• Provisional sums for undefined elements.
Clearly outlining what is and isn’t included in your pricing protects you from being held accountable for undefined scope items after contract award.
3. Engage a Quantity Surveyor to Review the Tender
A QS plays a crucial role in:
• Identifying scope gaps in tender documents.
• Advising on potential cost risks.
• Assisting with pricing strategies.
• Drafting exclusions and clarifications to strengthen your bid.
With a QS’s expertise, your bid becomes more robust, defensible, and aligned with industry standards.
4. Use Provisional Sums for Unclear Elements
When scope details are vague, a Quantity Surveyor will recommend using provisional sums. This allows flexibility in pricing and ensures that undefined elements can be adjusted later based on actual project requirements, reducing the risk of unexpected cost increases.
5. Attend Pre-Tender Meetings and Gather Additional Information
Whenever possible, attend site visits and pre-tender meetings with your Quantity Surveyor. A QS can:
• Ask critical questions that may not be evident in the tender documents.
• Gather insights that influence pricing and risk assessment.
• Identify potential risks before the bidding stage.
This proactive approach strengthens your bid and prepares you for accurate project execution.
Overcoming unclear scope in tendering is essential to avoid disputes and cost overruns. By seeking clarifications, qualifying bids with clear assumptions, and engaging a Quantity Surveyor, contractors and subcontractors can ensure a more transparent and fair tendering process.
At GQS, our experienced Quantity Surveyors specialise in helping contractors and subcontractors navigate the tendering process with confidence. If you need assistance reviewing a tender, identifying risks, or preparing a risk-managed bid, get in touch with us today.