Make sure to allow for inflation in cost estimates.
Particularly allow for large increases in raw material costs (e.g. stainless steel, copper).

This is important in the tender preparation process. You don’t want to offer a fixed price and find that your material costs go up dramatically.

It is common to put a clause in your contract/offer conditions that allow for price increases on certain parts of your work if the material costs increase above a set percentage.

Tagged with: conditions • Cost • estimate • inflation • materials • Tender

Filed under: Contract • Cost • Tender

If the project you are tendering is going to have complicated design or a design that is unusual or new to your company or industry then make sure you allow extra budget to cover it.

This is for the extra work in design checks and making sure it is adequate fot the scope.

It is also to cover the costs of responding to RFI’s (request for information) from the contractors that must construct the design.

Tagged with: budget • Design • Planning • Tender

Filed under: Design • Planning