Reviewing a subcontractor quotation is about much more than checking the final price.
The cheapest quotation is not always the best value. A low price can quickly become expensive if the quotation contains exclusions, unclear assumptions or missing elements of scope. A Quantity Surveyor should therefore review every quotation carefully before making a recommendation or placing an order.
Exclusions
The first thing to check is the exclusions. These are items the subcontractor has specifically stated are not included in their price. Common exclusions might include access equipment, waste removal, testing, protection, temporary works, attendance or making good. Each exclusion should be compared against the subcontract enquiry and the wider project requirements. Any excluded item will either need to be added to the subcontractor’s price or covered elsewhere.
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The second area is qualifications. A qualification is a condition or limitation attached to the quotation. For example, the subcontractor may have allowed for only one site visit, standard working hours or uninterrupted access. Qualifications can create additional costs later if the actual project conditions are different. They should be clarified and, where possible, removed before the subcontract is agreed.
Provisional Sums
Third, look carefully at provisional sums. These are allowances for work that has not been fully designed or defined. Although provisional sums can be necessary, they create cost uncertainty. Check what the allowance covers, whether it is realistic and how the final value will be calculated.
Programme Assumptions
The fourth point is the subcontractor’s programme assumptions. Their price may be based on a particular start date, duration, sequence or number of visits. If the main programme changes, the subcontractor may seek additional payment. Make sure their assumptions align with the current construction programme and procurement schedule.
Material Price Increases
Fifth, check for material price increases. Some subcontractors may state that their quotation is only valid for a limited period or that increases in labour, materials, fuel or transport will be charged separately. Confirm the quotation’s validity period and whether the price is fixed or subject to fluctuation.
Missing Scope
Finally, review the quotation for missing scope. Compare it line by line against the drawings, specifications, bills, schedules and subcontract enquiry. Look for interfaces between trades, as these are common areas for gaps.
The best way to review a subcontractor quotation is to use a quotation comparison document that clearly identifies inclusions, exclusions, qualifications and differences between bidders.
A thorough review before placing the order can prevent disputes, reduce variations and protect the project’s budget.
