Partner Article

Construction consultants take alternative approach to tendering

A national construction consultancy is revolutionising the process of tendering to significantly boost the chances of construction schemes being completed on time and to budget.

Rider Hunt, based in Newcastle, has devised an Alternative Tender Method (ATM) to address cost and time pressures inherent in construction contracts.

Rider Hunt, which has operations throughout the UK, specialises in a range of cost planning and management services in the construction sector.

Stephen Roberts, partner at Rider Hunt, says: “As well as asking contractors to submit a tender based on a standard building contract, we are asking them to submit an alternative tender, which essentially requires them to assess the likelihood of delays and variations within a project.”

Whilst many project variations can be absorbed in an overall construction scheme, some lead to “Extensions of time” and “Loss and Expense” claims, often making the end cost of the project higher than the original tender, as well as the project not being completed within the original time frame.

Rider Hunt’s ATM involves deleting a careful selection of clauses relating to “Loss and Expense Claims” and “Extensions of Time” from standard contracts, so that at tender stage contractors assess the risk of project variations and competitively assess a premium to cover those deletions.

Stephen added: “By asking contractors to submit an alternative tender we are giving clients the option of discharging the majority of the risk of extensions of time and their financial implications back to the contractor. The negligible (and sometimes zero) premiums being tendered are well worth considering by clients”.

Construction schemes will always be subject to variations and risk. Standard tenders, however, come with the risk that if there are any project variations which cannot be absorbed in the overall duration of the project, clients could be subject to unbudgeted increased costs and a delayed completion.

Construction consultants Rider Hunt, say that the ATM makes the process of tendering more transparent. Up and down the country, clients are said to be welcoming the innovative tendering process, which is allowing them to budget more fully for schemes. Progressive contractors too, are commending the ATM as being a vehicle to enable them to tender openly, as well as incentivising them to complete on time.

Stephen concludes: “The ATM has made a considerable impact on our reputation as forward-thinking construction consultants, whose main aim is to forge effective and financially realistic relations between everyone involved in the construction process.

“Being so reliant on public sector tenders, the North East construction sector is experiencing particularly tough times of late, and our ATM not only substantially reduces the anxiety surrounding contracting in a lean period, but enables all those involved to forecast and budget even more accurately.”

Rider Hunt has a broad portfolio of clients ranging from housing developers to larger public sector organisations. More information about Rider Hunt can be found at www.riderhunt.co.uk.

This was posted in Bdaily's Members' News section by Jonny Marshall .