Cost Planning and Pre-Tender Estimating

This is to identify any key changes between the draft pre-tender estimate and cost plan and change management records.

• Pricing a Tender Documentation Based Pre-Tender Estimate

• Establish contingency and risk allowances

•     Reconciliation with the Cost Plan and Budget

• Pricing a Cost Plan Based Pre-Tender Estimate

The importance of cost planning is to assist our clients decision making to:

• Identification of any cost deviations from the cost plan, including any potential budget issues.

• Provides a cost benchmark to assess and compare the tender submissions against once returned.

• Determine the costs of options and alternatives, to assist in decision making and the optimisation of project.

• Support the continued development of the business case and confirm the proposed design and scope remains within any budgetary requirements.

These are the Pre-Tender Estimate Specific Requirements except:

• Compare the pre-tender estimate to the tender submission and analyse and reconcile in accordance with the CCM Procurement and Tendering SOP.

• Prepare and issue any necessary tender addendums required due to the results of the pre-tender estimate, e.g. if the scope of the works have been changed.

• Ensure all cost plan or pre-tender estimate related project information is retained on the project file/folders for the duration of the works

• Prepare and issue any necessary tender addendums required due to the results of the pre-tender estimate, e.g. if the scope of the works have been changed.

Which of the following does not include in preparing the Cost Plan?

•   Establish rates

• Pricing a Cost Plan Based Pre-Tender Estimate

• Assess programme, procurement, and contract implications

•    Undertake quantification

These are key issues to consider when adjusting the rates:

(More than one correct answer)

• Previous estimates on the project

• Changes in specification, standards and/or regulations

• Inflation due to changing market conditions for a specific / specialist product or key major element of the works

• Supply chain issues relating to the type of product or specialist supplier works or equipment

What is Pre-Tender Estimating?

• The Pre-Tender Estimating forecasts the anticipated cost for the project based upon the available design, specification, programme and other relevant information.

• Pre-Tender Estimating is a process that is typically undertaken at the completion of the various design stages from concept design up to entering the main contract for the works.

• Pre-Tender Estimating typically includes a detailed cost build-up to the works, appropriate to the level of design information available, along with an area/functional use schedule, cashflows and other related financial summaries.

• Pre-Tender Estimating is a process undertaken at the time of tendering the whole or an element/package of the works.

Which of the following does not define Cost Planning?

• The cost plan is a forecast of the anticipated cost for the works being tendered based upon the information issued to the prospective contractors.

• The cost plan forecasts the anticipated cost for the project based upon the available design, specification, programme and other relevant information.

• Cost planning is a process that is typically undertaken at the completion of the various design stages from concept design up to entering the main contract for the works.

•   The cost plan typically includes a detailed cost build-up to the works, appropriate to the level of design information available, along with an area/functional use schedule, cashflows and other related financial summaries.

This is to review and consider any programme information that has been made available, along with any details in relation to the phasing of the works.

• Pricing a Tender Documentation Based Pre-Tender Estimate

• Pricing a Cost Plan Based Pre-Tender Estimate

• Agree Scope of Pre-Tender Estimate

• Assess programme, procurement, and contract implications

This is to identify the most appropriate measurement tools and software in accordance with the CCM Measurement and Quantification SOP

• Compile Draft Pre-Tender Estimate

• Establish rates

• Benchmark comparison

• Undertake quantification

What is "R" is RACI?