Is the cheapest really the cheapest? - adjudicating construction quotations

"you get what you pay for"

​We have probably all heard the saying - 'you get what you pay for'. Well in construction this is often the case. The cheapest supplier or contractor ends up delivering the product late, sometimes an inferior product or their are hidden costs and expenses which add to the overall cost. Of course in some cases there are suppliers and contractors who are really good at what they do, and can deliver their product on time, with the required quality, and still be cheaper than their competitors.

Checking prices for your building materials

To ensure you will be getting the required product at the best price it's usually essential to obtain three or more quotations or bids. More importantly these bids need to be adjudicated properly. Part of this adjudication process is to check that the contractor or supplier has:

• allowed for the correct products
• evaluated all the applicable drawings
• priced all the items
• can meet the specifications
• conformed with the delivery or project schedule/program
• complies with the warranty periods (Construction project guarantees and warranties)
• will meet the required quality standards and documentation
• understands the site specific conditions, as required
• included for all taxes and duties
• allowed for transport as required
• adequate insurance in place
• agreed to the payment terms and conditions
• not incorporated any unsuitable or unacceptable conditions in their tender/quote
• sufficient resources to complete the work in the required time
• allowed for preparing any designs or drawings, as required

It may be pertinent to check on the supplier's/contractor's previous experience and even conduct reference checks with their past customers. (Selecting subcontractors for your construction project)

"Check for additional costs"

​In addition ensure that you have allowed for and added any additional costs that you may incur; such as for additional supervision or facilities and equipment which the contractor hasn't allowed, or travelling to visit their off-site manufacturing facilities.

Check the price is within budget

​Finally compare the best price (including the additional costs you may incur), with your budget or allowable. If your budget has been exceeded it may be necessary to revise the budget, look for other suppliers, or even adjust your specifications or scope of work to reduce the price.
#constructionmaterials #constructionprocurement #subcontractors

Other useful articles:
how samples, mock-ups and prototypes can benefit your construction project
Do Your Material Deliveries Suck? How to avoid problems
Don’t run short of materials on your construction project

A must read book for the people who are involved in construction projects, especially project managers."                                                 (Reader review on Amazon.com)

(To read more on this subject see 'Successful Construction Project Management - The Practical Guide' and 'Building a Successful Construction Company - The Practical Guide'.) ​

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​Paul Netscher has written several easy to read books for owners, contractors, construction managers, construction supervisors and foremen. They cover all aspects of construction management and are filled with tips and insights.
Visit to read more.
The books are available in paper and ebook from most online stores including Amazon.
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